I’m still digesting some of the restaurant meals I’ve had in the past few months.
The prices. The portion sizes. The tipping expectations. Am I starting to lose my appetite for restaurant dining? I do wonder.
In no way do I blame restaurants themselves for what’s happening today. Rising costs for food and labour have forced them to raise prices, yet one-third are operating at a loss. Now, the cumulative effects of inflation and rising interest rates are causing people to cut back on spending of all kinds.
My wife and I have pared back our restaurant spending somewhat, mostly by going to places where the cost and value match up well. There’s a new spot in our Ottawa neighbourhood where you can get a first-class smashburger with cheese for $10, and fries for $5. A bar we like has mussels and the best fries in town for less than $20.
The rise of the $40 entrée at premium restaurants is a big hurdle to get over, especially with portion sizes on the decline. We had a great meal at a new Ottawa restaurant recently, but left a bit hungry and amazed at the tipping options on the payment terminal – 18, 20, 22 and 25 per cent. Everyone talks about rising food prices, but tip inflation is a handful, too.
Restaurant meals are a non-essential, discretionary purchase that some people today flat out can’t afford because of inflation and high interest rates. But restaurants are core small businesses in our communities that employ people, pay property taxes and offer a needed diversion in these stressful times.
I want restaurants around me, and I’m willing to support them. But I’m rethinking how to do that.
Your homework: Send me an e-mail at rcarrick@globeandmail.com with the name of a restaurant where you live that offers great value. What do you like at this restaurant, and what’s the cost? I’ll collect answers and report back.
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Rob’s personal finance reading list
Best credit cards for foodies
One way to tackle high restaurant costs is a credit card that offers extra high rewards on dining out. Here’s a list of cards that do this.
How to research a charity
Lots of helpful tips on finding a charity to support whatever cause you believe in. Included is a mention of Charity Intelligence, which I have used to find out more about particular charities.
The fear factor in finance
A look at how our fears influence money decisions – fear of not earning enough, of getting fired, of outliving your savings.
How to afford maternity leave
A useful rundown on a financial topic for families that gets little attention, despite its importance. Many parents must get by with less money when they take parental leave.
Ask Rob
Q: I am considering investing in HSAV-T. How secure are these funds?
A: HSAV is the Horizons Cash Maximizer ETF, a kind of exchange-traded fund that holds investor assets in savings accounts at big banks. Investments in the likes of HSAV are not protected by deposit insurance, but you do have the security of knowing your money is parked in an account at a big bank. Overall, I would say HISA ETFs are low risk, not zero risk.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tools, explainers, guides and charts
A guide to private banking in Canada, which is a premium level of service offered to high net worth people. Often, that means investable assets of $1-million or more.
The Money-Free Zone
I’m turning the Money-Free Zone over to a reader today: “This is a suggestion re your music recommendations, which I enjoy. One of my all-time favourite albums is Atlantic Crossing, by Rod Stewart, from 1975, but only the second side of the LP from songs six through 10. Concludes with the fabulous song Sailing.”
Listen to this
CBC Radio’s Cross Country Checkup covers the story of adult children living at home. One in three adults under the age of 35 are living with a parent, a reflection of the high cost of housing.
On social media
Five retirement pitfalls you can avoid with advance planning.
ICYMI
What I’ve been working on
- Two strategies for parents putting money into an FHSA for their kids – which is best?
- Young adults want to retire early. Good luck with that
- Canada’s workplace pensions have an inflation problem
More Rob Carrick and money coverage
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Even more coverage from Rob Carrick:
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- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home downpayment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
Rob Carrick