May 19, 2020

If Canadian restaurants continue to increase menu prices, will residents quit eating out?

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3 min
If Canadian restaurants continue to increase menu prices, will residents quit eating out?

Do you consistently eat out? Let’s face it: food tastes good and we need it to survive. And while cooking can be fun or relaxing for some, there are times (more so than not) when dining out or grabbing a quick bite from a nearby restaurant is much more convenient and time saving than slaving over a hot stove.

However, while eating out can be easy and enjoyable, it may no longer be affordable. Originally reported by, 54 per cent of restaurants in Canada are expected to raise menu prices within the next six months.

But if this raise really does take place, will residents quit eating out? And if so, what will happen to the overall restaurant industry?

RELATED TOPIC: Tim Hortons continues to successfully build customer trust

Because the prices of groceries have increased throughout Canada, the prices of items on restaurant menus will follow suit.

Specifically, Restaurants Canada suggests that 65 per cent of the country’s eateries have reported their food budgets are higher than they were at this time last year due the rising prices of beef, pork and produce, which in turn has led to profit margins taking a hit.

Therefore, the 54 per cent increase in menu prices is expected to take place. And while this may not seem fair, it can be argued that the price raise in understandable: everyone—no matter what industry—needs to make a profit.

Regarding the issue, a spokeswoman for the industry had this to say: “Restaurants don’t make such decisions lightly, since price increases are an almost surefire way to keep business way.”

But will customers really stay away from restaurants and choose to eat at home?

RELATED TOPIC: Can other restaurants learn from Tim Horton’s recent marketing technique?

Obviously, it’s hard to say what will happen to each individual restaurant until the price increase actually goes into effect. However, some suffering is more than likely to take place.

“It’s an extremely competitive industry, and they have very price-resistant customers,” Reynolds said. “When they try to increase their prices, they find that customers aren’t willing to pay them.”

If this is the case, customers then have two choices: find another venue or eat at home.

 Most likely, if someone wants to eat out, then they will. After all, if an individual is choosing a restaurant to save time and convenience, then cooking may not be an option—even if the task is a little cheaper. He or she may just find a different restaurant that offers lower menu prices.

Therefore, it will be important for restaurants to become familiar with their competition. At a time when restaurants are raising their prices, owners can follow majority, do the same and risk losing clients—or try to appease current customers, keep menu items the same and risk losing some profit.    

RELATED TOPIC: Will McDonald’s new menu items last?

At the end of the day, restaurant executives need to do what’s best for their team and their industry. Profits may be lost if menu items aren’t raised to reflect the increase in beef, pork and produce. However, customers may be lost (i.e. profit) if a menu raise does take place.

It seems that the restaurant industry in Canada is going to have to get creativity if everyone is going to end up happy.

For the latest news regarding the food indsutry, take a look at our sister brand Food, Drink & Franchise

RELATED TOPIC: Uber delivers food in Canada – Is this the new business model to follow?


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Jun 8, 2021

Six issues at the top of tax and finance leaders’ agenda

Kate Birch
4 min
As businesses accelerate their transformation journeys, tax leaders are under increasing pressure to add strategic value. Deloitte reveals six tax trends

New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.

According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.

And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.

Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.

Trend 1: Businesses seek more strategic counsel from tax

Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.

According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”

Trend 2: Tipping point for resourcing models

Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.

Trend 3: Digital tax administration is moving faster than expected

in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.

"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."

Trend 4: Data simplification and lower-cost resourcing are top priorities

Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.

At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”

Trend 5: Skillsets are shifting

Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.

Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact 

Trend 6: 2020 brought productivity improvements

Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.

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