Inflation forces Hamilton restaurants to hike prices, change ingredients or shut down
CBC
Eighteen months after opening his bakery on Barton Street East, Mike Jensen said he is making "one of the hardest decisions" he's ever made.
Mikey's Cream Pies is closing in mid-September because of the cost of food and supplies, and a drop in new customers.
"It's been hard these last couple of months — food prices just keep going up," Jensen told CBC Hamilton.
His plans to close shop come amid rising food inflation rates.
While the overall inflation rate in Canada fell slightly in July, the food inflation rate grew to 9.2 per cent, a drastic increase from 3.6 per cent in August 2019, according to Trading Economics.
Soaring food inflation, coupled with increased costs of ingredients and takeout materials, are forcing business owners in Hamilton and across Ontario to adapt.
Erika Puckering, co-owner of The Electric Diner in Hess Village, said her restaurant has had to change some ingredients to avoid raising prices — but sometimes, it still hasn't been enough.
"We eat the costs at first and chisel it back when we release a new menu so it aligns with new products as well," she said.
"We don't want to have to cut on the quality or quantity of ingredients."
Puckering and Jensen both said loyal customers are still visiting and making their own adjustments.
"What's really killing restaurants right now is packaging … packaging alone has raised the costs of my pies by $1.50 per pie," Jensen said.
"Instead of a nine-inch, they get a six-inch because they can't afford the bigger pies."
Pete Mitropoulos, head chef of the Thirsty Cactus Cantina and Grill in Dundas, said there's also been unpredictable supply shortages.
"You don't know week to week if you can get some of the major items that you need to run the place and that's pretty tough," he said. "On top of that, you're paying a fortune for them."
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