A 25% increase over one year in the price of packaging for delivery and take-out orders forces restaurateurs to pass on part of the bill to customers.
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The price paid at restaurants increased by 3.1% in 2021, according to data from Statistics Canada. And it is expected to jump another 6-8% in 2022, says the Canadian Food Price Report.
Yes, there is of course the soaring price of food, but another culprit is identifiable: packaging.
“I’ve never seen so many restaurateurs shop around and make so many quotes,” says Guillaume Maillé, owner of Distribution MA.
His company sells oil, limes, but also a whole range of products, including packaging, to bars and restaurants of all sizes.
Its 450-pack of 25-ounce waxed kraft paper boxes was selling for $61 12 months ago. It is now worth $107. Some restaurants can easily use three packets a week.
Same thing for the bags used to transport the order. The box of 200 standard size bags went from $75 to $105 in one year.
“It has become more difficult to find them. But even if we bring them from Asia and the container costs six times more than before, it’s still more profitable than those made here, ”says the distributor as a tip unchecked to North American manufacturers.
Uneven in front of the rise
The increase in packaging affects chains as much as neighborhood restaurants.
“We have been paying 20% to 25% more for a year, and there will be other increases this year,” says Nicolas Filiatrault, vice-president of finance and administration at Benny & Co.
Purchases from the group’s 71 rotisseries are centralized, which gives it a certain volume. But the chain is not immune to the rise in the price of the items it needs most: boxes, plates, containers for sauce, etc.
“We absorb part of the 25 to 30 cents that it costs us more per meal, but it is certain that it is more than that for the restaurant on the corner”, advances Mr. Filiatrault.
He’s not wrong. Douglas Tan is the head of La Bêtise, which has three branches in the Montreal area. This typical neighborhood restaurant made almost no take-out orders before the pandemic.
“It’s more profitable without take-out,” the co-owner immediately says. Offering tartares, poutines, macaroni and cheese or crab bites to take away, “it’s extremely expensive”.
“Just the bag is 10-15 cents, plus about 20 cents per container. It can easily go up to $2 per order,” he calculates.
He already raised his prices last May, and he will definitely take into account the price of the containers next time.