The Slowing Loonie & Your Food Costs

The Slowing Loonie & Your Food Costs
By Dwayne Reno

We are 3 weeks into January 2016 and what a month it has been thus far. We have seen oil prices reach a 13 year low and China’s economy slow down. Also our Canadian Loonie has been losing ground to the American dollar; causing many foodservice operators to wake up to sticker shock.

This week I would like to take a look at the slowing loonie and your food costs. Also we have attached a food cost checklist, see below.

What is going up in 2016?
Most recently, the cost of cauliflower has jumped to $6.99 leaving many foodservice operators searching for alternatives, or removing it from their menus all together, here.  Restaurant owners were also shocked to see other staples such as meat and seafood increase last year, and according to the University of Guelph’s food institute, are all expected to rise again in 2016, here.

What does the slowing loonie mean for foodservice operators?

• Foodservice operators will have to find more ways to create desirable dishes using cost effective ingredients.
• Restaurant staples such as tomatoes, celery and cucumbers are all set to increase in price. This means keeping prices competitive and profitable will also be top priority for Canadian foodservice operators.

Understanding your food costs
Managing your food costs will be the best long term strategy going forward. While large chain operators can afford to maintain food costs of 34% and up; most foodservice operators cannot, and they will have to keep food costs manageable in order to remain profitable.

Food Cost Checklist
The BBA team has compiled a food cost checklist for foodservice operators, here. This checklist will provide a better idea of where your restaurant, bar or café needs help. Also our food cost management services are available to you as well, set an appointment here.

Furthermore BBA will also be launching our foodservice management tool in the coming months for more info, here. More to come in the coming months.

Until next time your customers want to know why they should spend money at your restaurant, bar or cafe. So give them the goods!

Need inspiration? Checkout some of our services.