Post-pandemic challenges include inflation the likes of which haven’t been seen in decades, COVID-related debt, supply-chain problems, labour shortages, rising taxes, more red tape and the switch to delivery apps, said“It’s resulted in the worst industry profitability in history,” he said. “I was actually shocked by the number of restaurants that are losing money or just breaking even but still not making a profit.Uber Eats delivery driver in Vancouver on May 1.
Add that 45 per cent of the workforce now works from home most of the time, thereby making a lot more of their own lunches, the B.C. minimum wage has risen more than twice as much as the consumer price index since 2015 and those government emergency loans, known asFinally, the apps: pre-COVID, pickups and deliveries at full-service restaurants accounted for 20 per cent of sales; now it’s twice that.
Dine-delivery means customers don’t come in, sit down, relax with drinks and perhaps be enticed by a server into having specials and dessert, but customers do pay a hefty premium to have their food and, should they choose, booze, delivered. “Takeout is the least-profitable part of food service sales,” von Schellwitz said. “But customers want it and while restaurants might not make money on the apps it gives them much-needed cash flow just to pay their bills and keep stock moving.”Article content“It don’t like them, but I have them and I don’t lose money on them,” Fikeris said. “But they cost people about 25 per cent more than if they’d eaten here.
“I tell people on the phone if they come here for pickup they save almost 25 per cent. But for a lot of people is a big convenience.”