Restaurateurs Say That Meal Prices Must Rise

Otago Daily Times, Issue 27385, 10 May 1950, Page 6

Restaurateurs Say That Meal Prices Must Rise

The Prime Minister’s announcement of the lifting of subsidies on butter and tea and other articles and the consequent increase in prices came as a shock to many restaurant proprietors in Dunedin. As far as can be ascertained, however, prices of meals have not been increased, but the Daily Times was informed yesterday that fairly substantial rises could be expected in the near future.

One restaurant proprietor took an extremely gloomy view of the position. He said that unless the Price Tribunal granted an almost immediate increase in the price of meals he might have to consider closing down his establishment.

were provided and the butter had almost reached famine proportions. Hotel Tariffs

No information respecting possible increases in hotel tariffs was available in Dunedin yesterday. Hotelkeepers were unanimous that there would have to be a fairly substantial increase in tariffs because of the increase in prices of foodstuffs and wages. It is understood that the matter is being handled by the head office of the New Zealand Licensed Victuallers’ Association in Wellington. The Daily Times has been informed that there have already been small increases in several boarding establishments in the city.

“We assume that we cannot do anything until authority is given by the tribunal. It is possible,” he added, “ that nothing will be done until some indication is given about wage increases. There have already been three wage increases during the past two years and these, together with a steady and substantial rise in the price of meat and other foodstuffs, have placed an almost intolerable burden on restaurants. There have been increases in the prices of meals, but the public has really escaped very lightly.”

He pointed out that before the present rises there was little profit in providing meals at a half-crown a head and that his establishment had really been kept going by catering for weddings and other functions. “ These entail working very long hours,” he explained, “ but they have helped us to keep going and provide the public with an essential service. He estimated that even with an increase to 3s and the “ adoption of all possible economies,” there would be little profit in providing meals. “ Facing Bankruptcy ”

Another man with long experience was also pessimistic about the position. “ If we are to escape the Bankruptcy Court it will be imperative to increase meals by at least sixpence,” he said. “This is going to hit the public, but it will also hit us too, because it has been my experience that with every rise in the price of meals many regular customers decide that it is more economical to cook their own.”

With the shortage of labour and the increasing wages he thought that the old type of restaurant with services by waitresses was doomed and that they would be replaced by the cafeteria type in which customers “ helped themselves.” Cafeterias had proved popular in most of the northern centres as well as in other countries, and he described them as the “ answer to the restaurant proprietors’ prayers.”

Stressing the burden that had been placed on him by rising costs of materials during the past two years he pointed out that his gas and power had gone up by over £1 a week. White paper had gone up by over £1 per pound, and meat, fish and vegetables were all substantially higher. The increase in the price of meals had lagged far below costs and he feared that the increased burdens imposed as the result of the lifting of subsidies would make it almost impossible to carry on with the service that the public had learned to expect. Certain economies had been decided upon by the proprietors of smaller eating houses, it was stated. Most of them specialised in grills and fish meals. In some.of these places customers were provided with pots of tea. but from Monday these had disappeared and cups of tea had been substituted. It was also noticeable that fewer and thinner slices of bread