Page 13 - GBC Fall 2022 Eng

the same time he hasn’t noticed fuel costs and other price increases stopping golfers from making the drive to his golf course or others on the west coast.”
“Some people are defiant and say, I’m not traveling here or there because of gas prices and yeah, it’s incredibly high along with everything else right now,” he says, “but remember when folks said, well, if a case of beer ever goes over $5 that’s it. Then it was $10, then $15. Fuel is high but it’s not going to continue to rise like that case of beer and stay at that price. People still want to go visit, they want to go on vacation and they want to play golf. People saved a lot of money during two lost years of COVID-19. Despite where inflation has got to they’re spending some of it.”
Schaal maintains that no matter how high fuel prices soar to it still won’t be as big a factor as weather is for the Canadian golf industry.
“So many operational costs are tied to fuel and that filters down to our consumer base but honestly, if the forecast calls for zero percent chance of rain and a perfect day that’s what dictates where consumers are going and what they’re doing,” he added.
RISING FOOD COSTS
Core inflationary data continues to trend in the five percent range. While an easing on gas prices would be welcomed economists warn that inflation won’t magically disappear after implementation. Far from it actually. A number of key metrics have continued to hover in the 5.0 – 5.2 range according to Statistics Canada.
Food costs have been a particularly bitter pill to swallow. In April those were 9.7 percent higher than they were in 2021.
“On a year-over-year basis increases in food prices have been broad- based with consumers paying more for nearly everything at the grocery store,” said a May Statistics Canada report.
Food and beverage operations have been feeling that pinch. After two seasons of closure or take out options only a return to normalcy for clubhouses this season has brought about new challenges linked directly to higher prices in the grocery store.
Fresh fruit was up 10 percent in April this year compared to 2021. Meat, 10 percent; bread, 12.2 percent and pasta was a whopping 19.6 percent higher. Even the price of a cup of coffee is 13.7 percent higher than 12 months ago.
Food and beverage managers and owners/operators have been forced to hike prices accordingly which has drawn the ire of customers.
“It’s easier to go up a little bit each year than any major price jumps so we didn’t hear much on golf or carts,” Griffith says. “Where we’re really getting push back from customers is in the kitchen. Those prices had to go up and had to go up pretty drastically so yeah we’re hearing about that. I mean a loaded hamburger with a side can get you up to $18. Part of that is tax, which is not on us but it is what it is. That’s the cost.”
Equally flummoxed by produce costs, Brotchie certainly doesn’t like where they’re at but understands how the current inflation tsunami has manifested into the higher prices Lakeland Golf Management is charging this season.
“I’m pretty shocked by some of the prices in restaurants in general. I understand why they’re high but it still surprises me when I look at a menu,” he says. “Margins aren’t necessarily better or even as good but inflation is to a point we have to charge more and people have to pay more. But how does that affect the consumer. Do they cut back? If they do, where do they cut back?”
Tim Banick can’t answer those specific questions but he can speak to inflation’s negative impact on the supply and delivery of food products to golf courses.
Entegra Procurement Services Vice-President, General Manager of Canadian operations points to a problematic trickle down of increased prices, higher logistical costs and labour shortages on his side of the industry.
“Suppliers and distributors through the pandemic had all kinds of trouble working their warehouses
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