Food inflation ticks higher in May for first time in nearly a year

The survey of 1,500 respondents in Canada found seven in 10 diners report noticing rising prices at restaurants over the last year. Four in 10 noted their favorite dishes are shrinking in size, a phenomenon commonly referred to as “shrinkflation.” However, the Lightspeed survey found 44 per cent of respondents still expect to continue dining out in spite of cost pressures. Kelly Higginson, president and CEO of industry group Restaurants Canada, said the combination of rising operating costs and weaker consumer spending is a “one-two punch” for restaurant operators. “They really find themselves at a challenging crossroads, where they’re contemplating raising menu prices to offset their high food costs and other inflationary pressures, but they also have significant and well-founded fears that this going to discourage people from visiting,” Higginson said in an interview. The Lightspeed Commerce survey points to an uptick in money-saving behaviours. Thirty-nine per cent of restaurant-goers said they are hunting for deals with coupons, 33 per cent are choosing value meals, and 26 per cent are making the most of happy hour specials. Twenty-five per cent of Canadian respondents also said they are tipping less in an effort to control the cost of eating out. “We’re seeing all sorts of different changes in consumer habits, but at the end of the month, it’s our operators that are really paying the price,” Higginson said.