Raising the minimum wage may well affect consumers. To compensate for wage increases, the prices displayed on restaurant menus and those of supermarket products are likely to inflate, warn establishment owners and retailers.
“A 7% increase in the minimum wage will mean that my directors, my managers, will also ask me for a 7% increase,” says Martin Guimond, owner of the Saint-Bock brewery, located in downtown Paris. Montreal. “They’re going to say to me, ‘I want more.’ »
In Quebec, workers paid the minimum wage will see their hourly rate increase by $1 from the 1er may. They will therefore receive compensation of $15.25. The minimum wage for tipped workers, such as servers, will increase to $12.20, an increase of $0.80. Although this increase was announced to improve the lot of many employees, it will generate additional expenses for companies which will have to raise the salaries of all their employees, even if they already earn an hourly rate of more than 15, $25.
Result: part of this bill could be passed on to consumers. “Prices will explode. If we want to keep quality and quantity, we have no choice,” confirms Mr. Guimond.
And the pill may be difficult to pass, according to him. Since the pandemic, the price of menus has greatly increased. Customers are already frowning at the menu right now, he says. “The cheeseburgers that were $15.95 at the time have already gone to $19. There, we are going towards a price of $20.50-$21. The beer and poutine he serves his customers will not escape either.
Consumers who are used to dining at La Belle & La Bœuf, Monza or ordering chicken at Rôtisseries Au Coq – all managed by the Foodtastic group – could also see price increases on menus, confirms its president , Peter Mammas. “A 7% increase in the minimum wage cannot be absorbed by industry without a price increase,” he says. Our teams are assessing the exact impact before adjusting prices. »
Under these conditions, the vice-president of public affairs for the Association Restauration Québec (ARQ), Martin Vézina, wonders if consumers will be ready to pay a higher bill. “How far are people going to be willing to follow us? “, he wonders.
Mr. Guimond, of the Saint-Bock brewery, is afraid to know the answer. “People will say it’s too expensive and decide not to go out to eat. »
Also in the grocery store
At the supermarket, increases could also be felt the day after the 1er may. “There’s going to be a domino effect,” says Stéphane Lacasse, vice-president of public affairs for the Quebec Food Retailers Association.
According to him, nearly 80% of grocery store employees are paid an hourly rate varying between $15 and $18. Currently, the minimum wage is set at $14.25. As in restaurants, they may want to preserve the gap that separates them from the minimum wage.
“And who says salary increase says cost increase,” he adds. There is a part of this increase that will be passed on to customers. »
Michel Rochette, president for Quebec of the Retail Council of Canada (RCCD), adds for his part that this increase contributes to exert “pressure on the industry”. His organization notably represents major brands such as IGA, Metro, Loblaw (Maxi, Provigo), Costco and Walmart.
“Salaries for a long time have increased a lot. And it’s the whole chain of wages that is influenced upwards when there is an increase. »