I don’t blame the restaurateurs. They have rarely had life as hard as over the past five years. A few have closed their doors. Others float painfully.
The observation is nevertheless cruel: the prices shock many consumers. They change their habits. They frequent restaurants less or spend less when they do.
The St-Hubert Group has made an accurate reading of the state of mind of its customers. Its announcement to reduce the prices of a series of dishes is well received and I would not be surprised to see an increase in attendance in the short term.
Awareness
Let’s stay realistic. St-Hubert is also doing some marketing and public relations. A wave of visibility lasting a few days regarding a price reduction operation is worth its weight in gold.
Especially since St-Hubert does not cut its prices in half! Let’s take the chicken noodle soup, I took the plunge myself when I learned that it had reached $6.95. By bringing it down to $5.75, the percentage reduction is certainly significant. But even at this price, we are not talking about a windfall or an act of charity towards us.
Nevertheless, St-Hubert’s approach appeals to me for the following reason. A major restaurant chain took the time to look at the prices on its menu with the customer in mind. Rather than participating in the festival of increases by singing the usual refrains of “everything is increasing,” they questioned their customers’ ability to pay.
Families
This is especially true for a family restaurant. Of course they offer daily specials and children’s menus which are supposed to give a chance, but families often come out of family restaurants in shock. We thought we’d take a Thursday evening off from cooking and washing up and now it’s costing well into the triple digits. Ouch!
Families end up looking at the family restaurant as a luxury. The phenomenon is not unique to Quebec. A survey published this spring in the United States revealed that more than three-quarters of families even considered fast food a luxury. 62% said they frequented restaurants less, because of the prices.
Give them a chance!
Restaurants are struggling with high and inflexible operating costs: food, labor, rent. On the other hand, we forget that restaurants are also a cash cow that governments happily abuse. Governments haven’t gotten the memo about how precarious the sector is.
The SAQ charges them a surcharge. The government requires a series of permits and others if you have a terrace. Speaking of terraces, we have noticed harassment from the City of Montreal. To have a storefront, Montreal requires one of the highest commercial taxes in Canada. Restaurant associations would be right to request states general to relieve their sector.
