Despite reopening in 2022 following the end of restrictive measures against Covid-19, bars and restaurants have not seen the meaningful and consistent improvement they expected. Rising prices prevented the sector from recovering. For 83% of organizations, inflation This is the biggest challenge for this year, according to data from the ANR (National Restaurant Association).
The survey was conducted in partnership with the consultancy company Galunion and Instituto Foodservice Brasil. 817 companies from all over the country, representing approximately 14 thousand companies in the sector, were listened to.
According to Fernando Blower, managing director of ANR, inflation has “a double effect on direct costs, whether it’s rent, CVM (Cost of Goods Sold) or liabilities.”
Rodrigo Alves, one of the owners of the traditional four-unit Ponto Chic restaurant in São Paulo, is among the group of entrepreneurs who see price hikes in 2022 as the biggest villain in the industry.
“We’ve been through a catastrophic pandemic for almost three years. Those who didn’t close their doors now have no cash and investment capacity, still trying to save the financial health of the bar or restaurant. Then we found a tractor. The opposite direction, namely inflation,” says Alves.
saw the brazilian prices skyrocketed in the past months we. April inflation preview was the highest in 27 years (1.73%)According to data from IBGE (Brazilian Institute of Geography and Statistics).
The increase is basically fuelSince road transport is the main way of transporting goods, it has resulted in a series of price increases due to high costs. According to the April inflation preview, gasoline rose 7.51% and diesel increased 13.11 percent.
The latest IPCA-15 (Broad Consumer Price Index – 15) also showed that, food and beverage prices It rose 2.25% in April after a 2.42% increase in March. Food outside the home also increased (0.28%), but at a lower rate (0.52%) than the previous month.
“This is our raw material, this is what we feel most so far, when it does not cause any damage, it immediately ends with our profit margin. It is not easy to pass this price on to the consumer, it takes time, it takes time. We are afraid, if we exceed these values immediately, we risk losing the customer. at a stage where we are working on it,” says the owner of Ponto Chic.
interest rate increase
With inflation, there is also an increase in the interest rate necessary to stop consumption and rising prices. 1 point increase in Selic from the Central BankThe fact that credit lines reaching 12.75% become more expensive is hurting entrepreneurs who had to take out loans to avoid closing during the Covid-19 crisis.
“This is affecting companies’ debt, because the industry’s recent pandemic financing, like Pronampe, is bound to be adjusted by the pressure on interest rates,” Blower says.
The association’s managing director also adds that interest and inflation levels should hinder the recovery of bars and restaurants that have shown improvement in late 2021 and early 2022. Six out of ten entrepreneurs in the industry said revenue in February this year was the highest. a year before the pandemic, same as 2019 or below.
For Rodrigo Alves, credit becomes more expensive at a very delicate moment. “You have to invest in stocks, inject money into the company at a time of high interest rate, with increasing movement,” he emphasizes.
Although the sector’s indebtedness ratio has improved compared to the last survey conducted in November, this ratio remains high (41%), with 55% saying they have debt. Among them, 15% take more than three years to settle, and 34% take one to three years.
Resumption of consumption
A relief for bars and restaurants is the resumption of customers’ consumption. In November last year, only 34% of consumers said they had returned to their pre-pandemic consumption habits. Now that rate has increased to 51 percent.
According to Paulo Camargo, head of the IFB (Instituto Foodservice Brasil), the survey shows that the number of consumers who continue to consume is increasing, leading the industry to have positive prospects for the coming months.
According to Alves in April, there is an increase that historically continues until the end of the year. Regarding March, the owner of Ponto Chic felt a strong increase in movement.
During this period, bars and restaurants also had to reinvent themselves. Most bets depend on the digitization of work and delivery, as the consumer is not yet fully back. The survey shows that 89% of respondents work with delivery and 71% see it as a profitable channel.
“An important point is the attention paid to food service in digital channels and the constant demand for the quality of delivery operations. The pandemic has accelerated this trend and now operators must be more careful and configure themselves to serve this channel,” says Camargo.
Launch of products with new flavors and textures (57%); focus on promotions, offers of the day and value actions (52%); launch seasonal, fresh or traditional produce (27%) and bet on delicious and delightful produce (26%).
* Intern R7Under the supervision of Ana Vinhas