Because of inflation, many retailers have to choose between raising their prices or cutting their margins and relying on an abundance of customers to survive. (Neshom/Pixabay)
Despite a summer marked by a recovery in the tourism sector, many restaurateurs are struggling with inflation. The cost of raw materials has indeed increased sharply, which has forced some establishments to review their menu or increase their financial stress.
While inflation has pushed up the price of groceries, it has also increased the cost of raw materials for restaurateurs. As a result, in this summer period following two years of health crisis, many brands must choose between increasing their prices, or reducing their margins and relying on an abundance of customers to survive, reports
The Parisian
.
Prices “partially” passed on
According to a survey by the Union of Trades and the Hotel Industry (Umih) carried out at the end of July, 61% of restaurateurs would have chosen to pass on
“partially”
the price increase on their card.
“The French understand that if the restaurateur buys the products he prepares more expensive, then the price of the dish also increases for the customer”
highlighted Olivia Grégoire, Minister Delegate in charge of SMEs.
But sometimes inflation was deemed too high to keep certain dishes on the menu. Jean-François Tastet, for example, decided to abandon duck breast and foie gras in his 13 establishments located around the Arcachon basin (Gironde). The 300 gram steak was maintained, but its price had to drop from 24 to 29 euros. A bet for the restaurateur, who believes that his high prices but
“acceptable”
will not scare away its clientele, mainly tourists.
The shadow of return
But, outside these areas, this price increase may have had an impact on the number of customers. For Jean-Guy, owner of the Les Bains brasserie in Trouville (Calvados), it is however a record crowd that has enabled him to maintain his pizzas at equivalent prices.
Inflation nevertheless puts this restaurateur, like many others, under financial strain. Especially since the sector has also had to deal with a shortage of staff and
“wages up 20% on average”
, according to Hubert Jan, president of the catering branch of Umih. The start of the new school year could thus prove to be particularly difficult for certain establishments.
.
