With patio and wedding season coming up, local restaurants and catering businesses are bracing for staggering food costs, as Statistics Canada reports that Manitoba has the highest annual inflation rate in the country.
Shaun Jeffrey, the CEO of the Manitoba Restaurant and Food Services Association, says food inflation has had a significant impact on the local restaurant scene.
“Monumental. It actually has a monumental impact,” said Jeffery.
Jeffrey says they are trying to stay competitive, but with food inflation on the rise, it all becomes more challenging.
“Restaurants are absorbing that cost. But we are getting to a point, especially now here in Manitoba, when restaurants are being so unprofitable that they are having to pass along a lot of these costs on to the consumers.”
Manitoba’s inflation rate, compared to April of last year, was 4.3 per cent above the national average of 2.8 per cent.
One of the reasons is increased property taxes and food costs, with grocery prices jumping 4.9 per cent since last year.
The province is planning to eliminate the provincial sales tax on more food as of July 1, but a bill to enact the change has not yet been passed.
“I have the bill before the house right now to take the taxes off groceries that PCs are blocking. The only thing that the Manitoba PC should be doing right now is sitting down in their chairs so we can pass our budget bill and take the tax off the groceries. We know from when we cut the gas tax that reducing a consumer-facing tax will bring down inflation,” said Premier Kinew.
Matthew Neufeld is the owner and chef at Prairie Kitchen Catering and has been in business for eight years. He says, customer turn around is picking up after the pandemic, but with rising food costs, customers are looking to save an extra dollar by cutting on takeout and restaurant visits.
“We are expecting a very busy season right now. It’s a little bit of a gap year, but we are super excited about all the possibilities to make people happier with food,” said Neufeld.
“We have been noticing a lot of people coming in because they want to get this experience; however, the price tag on what they are willing to spend their disposable income on is a lot lower.”
The rising food costs have forced Neufeld to find what he calls ‘creative alternatives.’ Part of it is looking into the direction of local stores and farms instead of chain suppliers.
“The food inflation and price of gas have given us both edges of that sword. It does not make it easy, but it makes it for creative alternatives on our end,” said Neufeild.
Jeffrey said, “We know that they will come to the table – they always do. Trying to support our industry. It’s just how much, how often, and how much they spend. So we are still seeing their faces, but we are just seeing them less.”
Manitoba Premier Wab Kinew speaks with reporters before the First Ministers Meeting in Ottawa, Thursday, Jan. 29, 2026. THE CANADIAN PRESS/Adrian Wyld
Keep it Factual
Add CityNews Winnipeg as a trusted source on Google to see more local stories from us.
