Posted at 6:00 am
Raising the minimum wage may well have an impact on consumers. To offset wage increases, restaurant menus and supermarket produce are likely to be inflated, shopkeepers and retailers warn.
“A 7% increase in the minimum wage means that my directors, my managers, are going to ask me for a 7% increase as well,” says Martin Guimond, owner of Saint-Bock Brewery in central Paris, Montreal. “They will say to me, ‘I want more.’ »
In Quebec, the hourly rate of workers paying the minimum wage will increase by $1 starting May 1. You will therefore receive a compensation of USD 15.25. The minimum wage for tipped workers, such as B. Server, will increase to $12.20, an increase of $0.80. Although this increase was announced to improve the lot of many workers, it will create additional costs for companies that need to increase the salaries of all their employees, even if they are already making more than $15.25 an hour.
Outcome: Part of this bill could be passed on to consumers. “Prices will explode. If we want to keep quality and quantity, we have no other choice,” confirms Mr. Guimond.
And the pill can be difficult to administer, according to him. Menu prices have risen sharply since the pandemic. Customers are already frowning at the menu, he says. “Cheeseburgers, which were $15.95 back then, have already gone up to $19. There we’re heading towards a price of $20.50 to $21. The beer and Putin he serves his customers won’t go unnoticed either.
Consumers used to eating at La Belle & La Bœuf in Monza or ordering chicken at Rôtisseries Au Coq – all managed by the Foodtastic group – could also see price increases on the menus, confirms its president Peter Mammas. “A 7% increase in the minimum wage cannot be absorbed by industry without raising prices,” he says. Our teams assess the exact impact before adjusting prices. »
Under these conditions, Association Restoration Québec (ARQ) vice president of public affairs Martin Vézina wonders if consumers will be willing to foot the bill. “How far will people be willing to follow us? “, he asks himself.
Mr. Guimond from the Saint-Bock brewery is afraid to know the answer. “People will say it’s too expensive and choose not to eat. »
Also in the grocery store
Increases were also felt at the supermarket on the day after May 1st. “There will be a domino effect,” says Stéphane Lacasse, vice president of public affairs for the Quebec Food Retailers Association.
According to him, nearly 80% of grocery store workers are paid between $15 and $18 an hour. Currently, the minimum wage is $14.25. As in restaurants, they may wish to maintain the gap separating them from minimum wage.
“And who says salary increases, says cost increases,” he adds. Part of this increase is passed on to customers. »
For his part, Michel Rochette, President of the Retail Council of Canada (RCCD) for Quebec, adds that this increase helps to put “pressure on the industry”. In particular, his organization represents big brands such as IGA, Metro, Loblaw (Maxi, Provigo), Costco and Walmart.
“Salaries have been rising sharply for a long time. And it’s the entire pay chain that’s impacted by an upward move. »