Restaurants Canada Expresses Concern as BC Restaurants Brace for Chicken Price Surge
May 23 2024 - 6:38PM
Restaurants Canada is deeply concerned about the increase in the
price of live BC chicken, approved by the BC Farm Industry
Review Board. This decision will have significant consequences for
British Columbia restaurants and consumers who value chicken as
an affordable food choice. British Columbians already pay the
highest retail price for chicken in the country, 40% higher
than the Canadian average. While there are several variables
in determining the final price to consumers, we are concerned
that the approved price increase could lead to another 10%
increase to the price of chicken for BC restaurants and
consumers over the next year.
“Our members are frustrated that the cost of chicken has already
soared in the past couple of years. Further price increases are
unsustainable, especially considering that
competitively priced chicken is a staple on 80% of restaurant
menus,” said Mark von Schellwitz, Vice President, Western for
Restaurants Canada. “Additionally, it is disheartening that
the foodservice industry, which purchases 40% of the chicken
produced in BC, has no say in the price-setting process.”
Restaurants Canada will be advocating for changes to the price
setting process to ensure those organizations closest to
consumers (ie. retail and foodservice) are recognized as
stakeholders in the price setting process going forward.
As an industry that traditionally operates on slim profit
margins, this increase will put an unsustainable strain on
restaurants. Despite facing a 20% increase in operational costs,
BC restaurants are shouldering most of the burden and not
passing those full cost increases on to their guests, compared to
chicken producers who are passing on all their cost increases.
While we appreciate the decision to gradually phase in the price
increases over the next year, this is going to significantly
change the economics of the entire supply chain. The bottom line
is chicken prices will become even more expensive because of
this decision, exacerbating the financial challenges faced by
our industry and consumers alike.
Annette Goerner
Restaurants Canada
613-818-6941
media@restaurantscanada.org