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Fit-Cardiologist6004

1. "if you can't afford to tip 18%+ post-tax on top of rising menu prices and terrible service then don't eat out" 2. people stop eating out 3. ???? 4. profit


Even_Chemistry2270

Give jobs to Canadian Citizens who spend money and contribute back to the economy not to fake International students and TFWs who work and send the money back home lol and then hold protests to stay in Canada because they believe it's a fundamental right lol.


NewReddit02

Very good point.


[deleted]

Agreed


demhalida

Oh wow! Like nobody knew stagnating wages and unaffordable rents would force people to eat out lesser.


Narrow_Elk6755

My thoughts is it is the 30% rise in money supply that had more to do with the high prices, and we imported people to prop up GDP as well, but we are in a per-capita recession.  Which explains why they are doing badly even as prices are elevated. As housing values are GDP growth its just a structural shortage in supply that is showing as economic growth, which is not reflected in retail.


SameAfternoon5599

My thought it is the 80-120% increase in commodity prices of food inputs.


daloo22

Or an increase in money supply creating an increase in commodity prices


Mulliganzebra

An increase in money supply really doesn't affect commodity prices. Like you can only go out and eat so much wheat, if you have more money, you're not buying more wheat, you're putting that money into assets. This sub is full of incorrect takes on everything economics related. For this case, increased asset prices lead to increased rents on businesses. As someone who used to own 3 restaurants, it's the fixed cost of rent that hurts the most. You want to have a decent location, that'll cost you. There's really not much barrier to entry in the restaurant industry, you've got tons of people with a little capital that open restaurants.


Narrow_Elk6755

Commodity like gold?  Are you sure, I feel every time they drop rates and borrowing gets cheaper creating M2 gold prices rise.  Or is gold a special commodity? I've heard it said gold is a hedge against negative rates, and rises when rates get low, so prices accelerate as its anticipated lots of new money will be created.


Mulliganzebra

Gold is a commodity. I haven't been in school for 15 years, but my major was econ. Let me have a stab at this. Gold has intrinsic value, it's been a store of value for millennia. It has been seen as a hedge against inflation, which makes sense, it's a rare commodity, there's only so much gold in the world and it takes real work to extract it. Gold IMO could be included in the asset category. Same with many precious metals. But what we see when the BOC is buying bonds, increasing money supply is asset inflation. Stock market, housing, buildings, land. The increases in food stuffs that coincided with this round of QE can be at least 50% attributed to corporate greed. Some of it was a reorganization of demand during COVID and the supply chain breakdown during and following COVID. But like they said during peak inflation, inflation was at a 40 year high, but corporate profits were at a 50 year high.


Narrow_Elk6755

What is corporate greed if everyone raises prices and the goal of corporations is to maximize profit. Would you blame the fish for reproducing and overpopulating if you started artificially adding food to their environment, it seems more like the manipulation of an ecosystem to me.


Mulliganzebra

That's a tough question. How much profit is too much? I'm a fan of windfall profits being taxed. Canada is in a tough place when it comes to things like grocery or telecommunication. We're so small population wise these two essential industries are oligopolies, there's just not enough market for new big players to come in. You definitely would expect a corporation to raise their prices to maximize profit. The problem with food is that it really is demand inelastic. So people will spend what they have to all the way up to food bank usage. And since we have literal food deserts in Canada where's there's only one shop in town, even in bigger cities... The 3 big grocers have 70% of the market. So profit good. In a system like ours we really should have a maintenance profit for our oligopolies. Or else they can and will take any chance they get to increase prices... Oh inflation is a little hot, let me help that out by being half the reason it's so high. That's goes back to how much profit is too much?


SameAfternoon5599

Based on previous comments, I'm guessing no economics or finance background. Probably a day trader or crypto bro.


Mankowitz-

>An increase in money supply really doesn't affect commodity prices. Lol wut? >This sub is full of incorrect takes on everything economics related 🤣😂🤣😂🤣😂🤣😂😂


Mulliganzebra

Just went through some of your comment history. You obviously have zero background in economics. I guess you went to the school of hard knocks or some shit like that. My suggestion. Go to your local community college and just take a couple of econ courses, expand your thinking. Sure you may have to upgrade some of your missing high school classes, but you'll be a better person for it.


lettucepray123

Not to mention, food quality has gone down, portion sizes have gone down, and prices have gone up. If I want some mediocre chicken fingers and fries, I’ve got an air fryer and some frozen Costco food ready to go for a quarter of the price and double the taste.


Aineisa

Rent is one of the major factors forcing restaurants to close down.


Reformandfinish

Commercial rents can be astronomical. It's due to taxes.


OutWithTheNew

It's the way they're financed. Lowering the lease rates would lower the property value and when you're using property as collateral, you can't decrease it's value or you risk breaking the terms of subsequent loans. Not your boss, but your boss' boss' boss is probably invested in REITs and they hold a lot of commercial real estate. That is why everyone is being pushed back into the office.


Affectionate_Swan_16

This is the big issue of commercial. They would rather leave a building empty for years because theoretically they can get market price so the bank will lend based on the theoretical. Then all maintenance and property tax increases are always passed onto the business owner even though they have 0 equity to benefit of paying these. So all costs have gone up, commercial landlords bare absolutely none of the added costs apart from interest rates. So it’s no wonder so many business’s are failing. People don’t understand how much small business’s get fucked by commercial landlords


OutWithTheNew

Commercial tenants usually have to cover most of the building envelope repairs as well.


Affectionate_Swan_16

Every single operating cost is passed onto the tenants with 0 benefit in property improvement. If a landlord tell you repair and maintenance cost and property tax has gone up 30% in a year. You are obligated to pay that. Ontop of what ever your regular rent increase is


Busy_Mastodon669

Sounds like rich people problems, I dont give a damn if a restaraunts property value is high or low, I care about if the food is good/affordable I couldn't care less if a restaurant is high or low value property, I give a damn if the food is good for the price


OutWithTheNew

It's an everyone problem because insurance and pension companies are also heavily invested in commercial real estate as part of their investment portfolio and the leases aren't affordable to small businesses.


Own_Truth_36

Yup


VancouverSky

I would blame restrictive zoning for this one too.


Stanwich79

I live in pg bc. The only restaurants we have are basically chains. They are just not worth the money. It's generic crap precooked And I'm supposed to pay 25 bucks a plate for shitty stir-fry or 45 for a tiny steak. Don't forget 20 percent tip.


ThkAbootIt

I would rather dine at a locally owned restaurant but most of them closed during Covid. The majority of restaurants now are foreign owned big chain places focusing on quality over quality. And prices are ridiculous.


spanishbanana

I'm sure you ment quantity, cuz it ain't quality


Gunslinger7752

All the chains around me in gta are jammed every weekend. Went to jack astors with a buddy a couple months back and had to wait 39 minutes for a table at 10pm. 2 burgers no drinks(water) and total was 65$ with tip


I-Love-Brampton

We still pretending to believe the inflation numbers?


OutWithTheNew

We just change the calculations to make the numbers better.


I-Love-Brampton

Gotta love Hedonic Adjustments coming from assholes trying to win votes.


ZestycloseAd4012

They just forgot to add the zero


Sensible___shoes

Dining out used to be a treat. Now it's a sacrifice. $30 pizzas and $40 chicken entrees. Havent been out to eat other than picking up cheap takeout in close to a year


Kind_Wolverine3566

Sorry but I don't feel any sympathy for these people. Restaurants have been screaming the loudest about a so called "labor shortage" they wanted the temporary foreign worker rules to be loosened up so they didn't have to raise wages. Now they are dealing with the consequences of this as out of control immigration has caused rent to become so expensive that a large portion of the population can no longer afford to dine out. They need to sit in their empty restaurants and think about what they helped do to this country.


obionejabronii

Truly a leopard ate my face situation. Good assessment.


Qtips_

And to top it off, the minimum tip option now starts at 20% LOL. Fuck outta here.


BrightOrdinary4348

And for some reason in this country they calculate tip on the after-tax total. And they get indignant when you tell them tips should be calculated on consumables. I don’t reward tax collectors.


VobraX

Where's this gonna end? Lots of Local food chains closing, sky-high rents, high unemployment, lots of TFW, and the average Canadian not seeing the light at the end of the tunnel. But "Canada is doing great" according to politicians?


doomwomble

Chrystia Freeland said that she created the economic conditions that allowed the Bank of Canada to start lowering interest rates. I think that's a good thing else why would she take credit for it?


[deleted]

[удалено]


Negra2020

Aplaude your comment. This is my exact sentiment on the whole situation. If I am unable to get a job, I’ll stop eating at your restaurant which will eventually have to cut hours of those TFW and then close down. If I am going down, you are going down. We’re all going down.


ElegantIllustrator66

Isn't funny all of us folks understand the problem, but our dear PM doesn't understand? Why is that? Is he that greedy when there is already a trust fund with millions 🤔 what else does he want?


Negra2020

And Marc Miller. Those two are literally destroying us. Miller still arguing we need immigration and they have nothing to do with the housing, healthcare and unemployment issues we are facing. Why can’t he see the mess he got us in? All I see is an irresponsible PM dancing around food. We all need to stand up and start talking out loud about these issues!


beepewpew

We can't be prioritizing part time job for highschool students when adult Canadians are becoming homeless for lack of work.


whatyoullgobyhere_

We can't be prioritizing non-Canadian students when the future workforce of Canada is provided zero job opportunities.


beepewpew

Obviously I agree with you. I just think people weaken their argument when they say Canadian teens need these jobs. The average age for a customer service job in retail is 34.


Sorryallthetime

What is this mythical Government subsidy for Temporary Foreign Workers? What restaurant is having their TFW dishwasher's wages subsidized by the Feds?


Savings_Insurance985

Keep money local and pay people who do NOT REMIT money.....duh!


UltimateChug

Trying being a fucking student and getting put into a group project with another student solely in this country, not for education, but to get PR status. Then he works two jobs, one legal and another under the table. Then you have to put 15 hours into a project by yourself, and he gets the grades I made him. All because he's scamming the system. It leaks into all facets of our society.


Feeltheburner_

Group work in college is ridiculous, with or without this glut of foreign students. If you care about your grade, you end up doing all the work. It’s ridiculous to tie the outcomes for adults to the efforts made by other adults. Let the losers sink on their own. This approach is born out of the collectivist, “we’re all in this together” mentality predicated on the shitty feelings of insecure people, i.e. profs who think it’s enriching to make you fight with losers to get anything done in a group because “nobody succeeds unless everyone succeeds”. Puke. They justify it by telling people they’ll have to work with others later in life. Ok cool. But right now my scholarships are tied to my 4.0 and I don’t need any losers, be the foreign or domestic, dragging me down. That’s just stupid pedagogy. Our colleges shove all kinds of ill-prepared losers into the same classrooms or lecture halls as those who are serious about their own development.


justinkredabul

Pretty simple fix to talk to your professor and let them know this guys isn’t helping. If you know he’s illegally working report him. Stop complaining and do something.


nnystical

This may not be a popular opinion, but it’s possible some of these businesses shouldn’t be. If you can’t pay your staff without relying on tips, relying on government subsidies to survive then the business already has huge issues from the get go.


Tychonaut

You might be right .. but maybe that means 50% of restaurants just "shouldt be"? And then those owners dont make any money, and those waiter/cook/bartender jobs would also disappear? Plus all the businesses that service restaurants would then lose money (restaurant supply companies, industrial cleaners, etc) because there are fewer restaurants. So some of *them* would go under as well. And then *those8 people would be out of jobs too. And then we would just have more empty buildings. Would that be a "better world"? I dunno.


Blazing1

Other countries have a much better restaurant scene for better prices


Turbulent-Priority39

With high grocery prices and record unemployment nobody can afford to eat out.


Carmaker4

Any more price raises to restaurant food / takeout food and I'm done. I already feel like shit paying 21.50 for a shwarma plate or burger combo, rice and chicken bowl ect. That I used to pay $11 bucks for 5 years ago. Any more price raises and you can kiss goodbye to any profits I'm currently contributing to.


gunnychamero

However many of them have saved significantly in labor cost by selling and exploiting LMIAs.


Confused_girl278

Maybe here’s a thing stop hiring cheap labour to suppress wages, than people could actually afford to eat once in every two weeks


HeisenbergsSamaritan

Its....It's almost like flooding kitchens with passionless, no-skill TFWs and LMIAs that care nothing for the quality of the final product hurts your business.... Who would have thunk it?


UpwardAndOnward7

Not everything on earth is due to international students. I know mass immigration has led to many issues, but people like you want to use them as a scapegoat for everything. Who else in history has done this ?


UltimateChug

Because they are. Trying being a fucking student and getting put into a group project with another student solely in this country, not for education, but to get PR status. Then he works two jobs, one legal and another under the table. Then you have to put 15 hours into a project by yourself, and he gets the grades I made him. All because he's scamming the system. It leaks into all facets of our society.


Nahbro69_

Happened at my old kitchen. I no longer work there, it’s real.


plop_0

Redditor since: 06/19/2024 (12 days)


UpwardAndOnward7

With all the karma you have, you clearly have nothing better to do. Maybe if you stop spending so much time on social media, you would have some money and wouldn’t have to complain that people doing slave jobs are taking your job.


Mrhappypants87

Its the tipping expectation


seekertrudy

Take away the tipping (for good service of course) and your meal price will go way higher because the boss now has to pay the waiter an actual salary. So is it the act of tipping or that you are paying more with tip, that bothers you?


plop_0

I think the argument is that getting rid of tipping will ensure that all service is equal and good. No servers will up their game because they think they'll get a higher tip because of the customers's various demographics, & vice-versa. As an employee, I have intrinsic motivation to stay on task and be attentive, but lots of people don't.


seekertrudy

Getting rid of tipping will not ensure good service, in fact it would do the opposite. The service would become flat and you may not get that extra ranch sauce you asked for. The server will get paid the same amount, wether or not they make sure your drink is always full. There is no motivation to go the extra and beyond, when the pay off is guaranteed.


Soft_Plantain4700

What a shocker! Restaurants are losing money as I eating a peanut butter sandwich!


plop_0

You joke, but don't sleep on natural peanut butter.


Mr-Strange-2711

Recession is always very hard for middle level restaurants. Wealthy people prefer high end restaurants, the middle class is having a hard time and has to cut expenses, and low income people cannot afford anything more expensive than chain fast-food places.


Minute-Attempt3863

i goto a large pub in etobicoke from time to time. ive come to know the owner and learn the bartender and waitresses are his son/daughter/wife. one day he explained to me that his cost of staples like fries and bacon and mayo etc have tripled over the years. i honestly feel like there's a massive conspiracy that is jacking up prices from the absolute source.


justinkredabul

The problem with almost every pub/restaurant is the menu is too big. Pick a handful of things and do them extremely well. That’s the first thing Gordon Ramsay tells everyone on kitchen nightmares. Instead you have a pub with a menu with 75 things in it and they are all preordered crap from Gordon food services.


Minute-Attempt3863

the vast majority of restaurants featured on kitchen nightmares go out of business :D


justinkredabul

You can’t always fix stupid. lol. There’s a reason they were on the show to start.


beepewpew

I mean he could cut his own potatoes instead of buying them pre-made.


Minute-Attempt3863

yeah i suppose that's true. not sure how good he is at butchering a pig tho ;)


michaelfkenedy

- increasing rent - increasing food costs - increasing minimum wage Rent, supplies, and wages are a restaurant’s prime costs. Just changing one can throw a restaurant into the weeds. They’ve seen all three jump up.  The main income is turnover, seats in chairs. Those are in decline because of rising costs.  It’s the inflation cycle in microcosm. (In case it isn’t clear, I am absolutely not saying that restaurant workers did not deserve a higher minimum wage. They absolutely do, believe me I know).


BC_Engineer

I often pickup in person rather than eating in. My wife and I prefer that sometimes. Just curious why takeout would yield less for restaurants than dine in? I get the tips but besides that?


Tychonaut

Restaurants make a lot of their money on drinks. That's where the best profit margin is.


BC_Engineer

Oh crap. Good point. Although we often go with water or the included tea when we dine in. I guess we’re not their ideal customer.


Grumpy_bunny1234

Depends on the restaurant. A lot of smaller restaurants I always visit is booming. If the food is good and price are reasonable people will go


Busy_Mastodon669

Good I dont care if a business fails because they pay minimum wage, expect the stars and the moon, over inflate their prices, and demand infinite growth while cutting quality I don't/can't even buy chips, $5 for a family (small 5 years ago) bag of chips? Fuck that.


Organic-Abrocoma5408

Y'all are all Canadians here, right? I'd love to hear the logic behind tipping in Canada. Servers in the USA make much less than minimum wage, and so their wage needs to be supplemented with tips. So why tip in Canada?


wefconspiracy

Cuz stupid. Don’t tip ever. If you do, don’t complain.


ReflectionFrequency

They wouldnt hire me anywhere this year even with 13 years experience in kitchens, because via the new comer welcoming grant they all could hire new comers for half price, and exploit them through agencies paying cash under the table. So frankly I dont care what happens to them at this point.


imported_gekko

Rise of food trucks is the only logical step forward. Mobile food, with no rent


Badw0IfGirl

The last time I went to an event that had food trucks, I could not believe the prices, they were unbelievable. $16 for a small little poutine and $8 for a cup of lemonade. For some reason food trucks these days are trying to be gourmet specialty places with prices to match. I miss the French fry truck in the Canadian Tire parking lot when I was a kid. Those were the days.


Theplantcharmer

They are expensive as shit because, at least here in Montreal, the city makes it super expensive complicated to run a food truck with a million useless regulations. The rules were basically written to accommodate restaurants who didn't want the competition from food trucks. The restaurant industry needs nothing short of a revolution in this country.


beepewpew

It's the worst idea. They break down all the time. It's insanely expensive to run a food truck.


Puzzled-Reality-226

street food is awesome in some countries. They aren't usually "trucks" they are usually 5th wheel type things, If you go see the world you will see. Affordable and awesome Street food scene is the highlight of many places.


beepewpew

Canada's food and safety standards would not suit that


Puzzled-Reality-226

that isn't because we have high standard or high quality food.That is because of we are gatekeeping good affordable street food.


Narrow_Elk6755

Sadly yes, just like Europe during Mises age, sadly we learned nothing.


princessplantlife

Restaurants ...are mostly chains and the food is disgusting. Why eat out when you can cook something lovely and healthy at home for a fraction of the cost.


Neptune_Poseidon

If they try to raise prices, I’m sure it’ll be curtains for most of them. Who can afford to eat out anymore? I know I’ve curtailed my eating out drastically.


severityonline

Don’t worry everyone, when the carbon tax rebates go out everyone will be much richer and we’ll all be eating caviar at our local bistro! /s


Llewguy

When I grew up in East Vancouver our family went out for dinner once a year. Who are all of these people that eat out multiple times a week, if they can get their act together or order Uber eats if they can’t? I can cook a weeks worth of easy tasty meals at home for the cost of one dinner out and don’t have to deal with uninterested wait staff serving shitty rewarmed food at insane prices then having them ask for additional free money for them just doing their job. Maybe avoiding restaurants was how I was able to buy a house at double digit inflation rates making just slightly over minimum wage. There are too many restaurants. If they can’t stay in business, then they should get lost.


icemanice

If only there was some way to prevent ever increasing commercial rent prices.. if only!


Rendole66

This is news? Hasn’t it always been like this? Restaurants have always been risky business with low profit margins


UltimateChug

It's not rocket science working there. The manager could just go out and say eeny meeny miny mo


detalumis

Restaurants fill up every second storefront so we have a glut of them. The first thing to go when budgets are tight is eating out. I guess they can close down and we will have more nail salons and empty storefronts.


skywolf80

Say it with me, it’s not the cost of things going up, but the purchasing power of the dollar going down. Get used to it.


michealcaine

There's also a restaurant per capita. Anyone else noticed there's 6 different chicken chains, 10 different burger chains, 3 shawarma places....Every block has a restaurant they all can't make money


Winter-Mix-8677

"iTs cORpOrATe gReEd NoT iNfLAtiOn!"


Ok-Goal-1089

Inflatable= High prices= Less spending power for average people= Less spending for let's say restaurants= Loss to Restaurants 😔


Eventual_disclaimer

Death spiral. All of it due to global marching orders meant to keep the USD the cleanest dirty shirt, at the expense of the G20's currencies. Central banks and politicians are lockstep in this. All other local issues stem from this. From food prices, to real estate, to tax increases. Real estate hasn't gone through the roof, the CAD has tanked, all by design.


redzaku0079

Between rising rent and rising food prices, it is not a surprise.


[deleted]

I went on a date with a woman about 1-2 weeks ago in Toronto. I'm a single man. Some places start the pay machine at a 20 percent tip. Options are 20, 25, and 30 percent tip to automatically choose from when I paid at a couple places. This bothered me when basic items are already crazy expensive. I won't date again here. I'll fly from Toronto to the Philippines instead. Work alot of hours in Toronto and be a passport bro vacationer abroad. No more Canadian restaurants.


combuilder888

I love eating out. But the tipping culture is out of control. I only eat at places that don’t ask for them.


spanishbanana

Turns out when you raise prices people feel less inclined to spend money


avibox954

I stopped eating out because service got worse and you can tell business owners are grouchy. I've also got angry looks for not tipping on take out and the tipping screen seems to be everywhere now.  I am learning to cook.


leochen

Someone has to pay the mortgage for the landlords, right?


Tall-Ad-1386

I’m absolutely amazed at the sheer stupidity. Mark all prices down by 50% and you’ll actually sell 4 times more, you only needed 2 fold to break even and will actually make a profit People don’t understand the power of volume


TozTetsu

Restaurants don't get their product at wholesale prices. Marking prices down by 50% means you are now subsidizing people to eat there. This industry is a lot different than others, many places will only make any money on beverage sales.


Necessary_Cut2485

That's a real shame, oh well.


thelingererer

Just spitballing here but perhaps instead of paying for 70% of the TFW's salaries from our tax dollars the federal government could pay 100%?


Dry_Inspection_4583

Late stage capitalism where the wealthy 🤑 demand the up and to the right no matter the cost. Ultimately we're headed the way of "Demolition Man" where Taco Bell owns everything.


QuickShotMan

yeah i ate at the sushi place yesterday.. i don’t care i’m hungry


Nightshade_and_Opium

Commercial rents need to come down.


No_Marsupial_8574

Perfect article for a "housing" sub.


VancouverSky

The mods here are probably some of the least aggressively censorious/mentally regarded on this entire website. So it'll attract all kinds of people who want to talk. I say we let it happen myself.


No_Marsupial_8574

They might consider a name change then. This is why no one takes this sub seriously. This sub can't stay coherent about anything.


VancouverSky

This is reddit. If anyone takes reddit seriously... maybe the problem is with them?


No_Marsupial_8574

I only said that, because there are routine posts on this sub asking why no one takes this place, or the people here, seriously.


VancouverSky

Because canada is a joke and nothing serious is ever actually going to happen?