Inflation, Omicron cause for concern: Sask. hospitality association

Uncertainties surrounding inflation and the Omicron surge are putting vulnerable businesses in the hospitality industry in a tough position.

Jim Bence, the president and CEO of the Saskatchewan Hotel and Hospitality Association, joined the Greg Morgan Morning Show on Monday to talk about how some people in the industry are faring under difficult circumstances.

“Typically at this time of year, it is slower. Well, now with periods of extreme cold, Omicron and a number of other factors, it’s just extremely grave for those in this industry,” Bence said. “So there are really tough times right now.”

Bence says the rising inflation is also leaving a dent on the bottom line, adding extra lines on the expense sheet are getting harder for businesses to overcome.

“Some are talking about maybe doing a temporary closure, but a lot of places are hanging on by a thread,” he said.

That thread has been thin for places like the Mercury Cafe & Grill, with some owners saying now is worse than any other point throughout the COVID-19 pandemic.

Rising COVID numbers have meant more people being unable to work due to illness, making scheduling another obstacle for small businesses as they try to determine who is able and unable to work.

“Omicron is presenting not as much as a health challenge as a scheduling challenge,” Bence said. “Rapid tests, that has been a game-changer for many employers and employees in that they’re able to react much quicker.”

Bence is optimistic that better times are ahead despite the current climate for the industry.

“We are just really looking forward to a great spring and a wonderful summer. You know, it’s out there, the horizon is coming towards us and I think there are much better times ahead,” he said. “Let’s get out there and visit our favourite restaurants. They really are safe places to go.

“I know that may sound a little bit bonkers in today’s climate of Omicron but we need to support our local folks just so they can get through this any way that you can.”

Inflation’s impact on the consumer 

Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University, was on the Roy Green Show on Sunday.

Charlebois said there isn’t an end in sight for when we could see a significant pause in rising inflation.

“For the first time in many years, the food inflation rate right now as of December was north of five per cent,” Charlebois said. “We don’t expect that to decrease anytime soon. In fact, because of what’s going on with our food system, we actually believe it could reach seven per cent by the time we’re done with 2022, at the very least.”

Charlebois noted not everyone is going to be able to absorb the cost of rising prices.

“For a lot of people, with a high food inflation rate, you’re often left behind just because you have to buy what you need for the next week for the next few days,” he said. “But if you have a car, for example, you can go to different places and you can buy in bulk, you can do different things to save money.

“Rising inflation will penalize households with less means.”