A significant increase in haddock prices is leading Nova Scotia eateries to transfer the additional costs to consumers, as constrained quotas and limited supply push up the cost of the fish across the Maritimes.
The Pleasant Street Diner in Dartmouth, N.S., renowned for its fish and chips, typically uses around 1,000 pounds (450 kilograms) of fresh haddock every week. However, at the beginning of this month, their supplier raised the price of this historically affordable fish by 40%, equivalent to about $5 per pound. Consequently, the diner’s weekly expenditure on haddock surged by $5,000 overnight.
This surge represents the most substantial increase that co-owners Stephen and Tommy Fatouros have witnessed in their thirty years in the fish industry. Since haddock dishes constitute over half of their menu, the brothers were compelled to raise menu prices by 10% due to the sudden cost spike.
The scarcity of haddock is the primary reason for the price surge. In April, the Department of Fisheries and Oceans reduced haddock fishing quotas by 57% in areas off southwestern Nova Scotia, southern New Brunswick, and the Gulf of Maine, citing a prolonged decrease in stocks.
The spike in prices is further compounded by the escalating cost of canola oil, essential for deep-frying fish. The diner’s weekly canola oil expenditure is now $700 more than it was last year.
The Pleasant Street Diner is not alone in facing this 40% hike in haddock prices. Rudy and Olive’s Fish & Chips in Bedford, N.S., also confirmed a rise in menu prices due to the soaring cost of haddock.
The surge in haddock prices is the latest challenge for the Atlantic Canada restaurant sector, which has been grappling with rising costs across the supply chain since the onset of the COVID-19 pandemic.
Natasha Chestnut, the executive director of the Restaurant Association of Nova Scotia, highlighted that many restaurants are operating at a loss or barely breaking even, a stark increase from 2019. With costs mounting, she anticipates more establishments will have to raise their prices to remain viable.
To keep prices reasonable, the Pleasant Street Diner previously removed scallops from their menu altogether. The cost of scallops also surged this year after the DFO slashed the total allowable catch on Georges Bank by about 48%.
Given the rising costs across various fronts, consumers are expected to understand the necessity for increased menu prices. The focus remains on maintaining quality and service standards even amidst price adjustments.
The Fatouros brothers communicated their decision to increase prices in a Facebook post, receiving praise for their transparency from online followers and diner patrons alike.
Despite the challenges, the diner witnessed an overwhelming show of support from loyal customers following the price adjustments. Stephen expressed gratitude for their continued patronage while acknowledging the delicate balance between sustaining the business and accommodating customers’ expectations.