Sugared & Spiced isn’t the only food establishment one bad month away from closure. In January 2023, Noma — the Copenhagen spot considered one of the best restaurants in the world — announced its plan to close. “The math of compensating nearly 100 employees fairly, while maintaining high standards, at prices that the market will bear, is not workable,” owner René Redzepi told The New York Times.
If even a world-famous restaurant is struggling, just imagine what small businesses in Edmonton are going through. “The entire food and beverage industry is teetering on the edge of disaster,” Cheverie says. “Restaurants have a 10 per cent profit margin if everything is running splendidly, and that rarely happens, so it’s usually closer to a two to five per cent profit margin. We had a lot of challenges pre-pandemic, and now the aftermath has really stretched these issues.”
At Otto Food and Drink, owner Ed Donszelmann is willing to do anything to keep his restaurant open—even if that means paying for costs out of his own pocket. The Sautéed Brussels Sprouts are a guest favourite, and remain around $10 despite the price of brussels sprouts having more than doubled in the past six months. “We can’t charge $20 for a little bowl of brussels sprouts, but I never want to take it off the menu so I am eating those costs,” Donszelmann says. “I can’t increase the price of most of our dishes without making it unreasonable for customers, and our menu is pretty small so there’s not a lot to take off. In most cases, I’m just paying for the costs out of pocket.”
While Donszelmann’s approach might not seem sustainable, he is optimistic things will turn around with community support. “Otto has become too important to me, to the community. It’s a meeting place for all Edmontonians in an inner-city neighbourhood. My approach is to try and keep prices fair, but get more people into the restaurant.”
For all three places, unpredictable consumer habits have been challenging since COVID restrictions lifted. The usually reliable holiday season was less consistent in 2022, and lately the effects of inflation on everyday spending have become an additional concern.