Rising food and beverage prices are pushing revenues in restaurants and bars. The latest numbers on sales in this segment of the hospitality industry come from May and up across the country compared to April with two exceptions: Saskatchewan and BC.
The latest StatsCan numbers on these businesses show sales rose slightly – less than half a percent for the month – but inflation was the primary factor driving increased revenues as food and beverage prices rose by more than three-percent in the month. In other words, higher prices, not more business, was behind the revenue growth.
Here in Saskatchewan, sales for the month were down slightly: six-tenths of a point, the biggest decline among the provinces. But compared to a year earlier gross revenues increased by nearly nine-percent which was pretty much the strongest growth rate in the nation, taking total sales to almost $225 million a month.
The strongest gains were seen in full-service restaurants nationally. Sales in bars and taverns also increased. Revenue generated by specialty outlets such as mining camp catering showed the strongest growth in the month.
