Welland restaurant thankful for support
‘We wouldn’t be here if not for our regulars’: Rex Hotel stays the course as cost of food climbs
There is one thing Bruno Carusetta knows for sure — The Rex Hotel has become a landmark in downtown Welland with more than a century in business and that couldn’t have happened without the community’s support.
The business started in 1915 as an ice cream parlour and transformed over the years. At one time, it was a hotel and later became a restaurant and bar.
Today, the Rex Hotel is a fourgeneration family legacy, and has managed to survive many ups and downs, including the COVID-19 pandemic.
“We wouldn’t be here if not for our regulars and a lot of the support we received through takeout,” Carusetta said.
But the rising cost of everything from food to utilities still has an impact; which has meant a change in hours, temporarily closing one of the restaurant’s three dining rooms and increasing food prices. “Food costs have gone up across the board about 10 to 15 per cent in the last little while. Certain items have gone up more than others,” Carusetta said, noting cheese is one of the items that has gone up substantially.
The Rex Hotel had to raise its prices back in December and is potentially looking at another increase in the fall to manage costs. Even changing menu prices have an impact; every time the menu is changed, it means new ones have to be printed.
Carusetta admitted the Rex Hotel has been fortunate; there’s no mortgage on the business and it is well established in the community. “I’m not complaining at all. We’re good, but I really feel for other restaurants who are struggling more right now,” he said.
Statistics Canada reported that as of May, inflation is at 7.7 per cent — the highest it has been since 1983 and up from 6.8 per cent in April.
Statistics Canada also reported the cost of buying food remained elevated in May, as prices for food purchased from stores rose 9.7 per cent, matching the gain in April. Growing grocery bills are due to a number of factors including global supply chain problems and higher transportation costs.
“The current rate of inflation has been tough on our restaurants,” said Dolores Fabiano, executive director of the South Niagara Chamber of Commerce. Fabiano explained a number of restaurants in Niagara have had to look at reducing portion sizes and how much of an increase in costs they can pass along to their customers. “Many of the members we have spoken with are not currently looking at laying off employees or cutting hours, however, that will likely change come the fall,” she said.
Fabiano also reported many local restaurants are seeing more credit card transactions as opposed to cash or debit. “Again this may slow some spending come the fall,” she said.
The business started in 1915 as an ice cream parlour and transformed over the years