Victoria restaurant raises and lowers prices in response to food costs and inflation

Rising food costs are forcing restaurants to make some tough choices up and down Vancouver Island. At Pagliacci’s in downtown Victoria the solution has been a c

A downtown Victoria restaurant is adjusting menu prices in response to rising food costs, raising some items while lowering others in an effort to balance affordability with quality.

Pagliacci’s co-owner Solomon Siegel says the changes come as inflation continues to push ingredient prices higher across the restaurant industry.

“It’s a dance that we have to be very careful about,” said Siegel.

Rather than apply broad price increases, Siegel says the team reviewed each menu item individually to determine where changes were needed.

“We broke down every dish and we really looked at each one and we asked ourselves: Are these the best ingredients for the dish?” said Siegel.

Executive chef Suka Basra says the process led to several ingredient adjustments aimed at managing costs while maintaining flavour. In the dish “20,000 Leagues Under the Sea,” halibut was replaced with locally sourced white fish.

“We did a rock fish and a cod and I found that it added so much more flavour to the dish,” said Basra.

After reviewing the menu, the restaurant found roughly 20 items could be reduced in price, while about 10 dishes required increases including “The Shell Game,” which uses scallops that have risen significantly in price.

Siegel says the restaurant chose to maintain the ingredient despite the added cost.

“That was an area where we had to give quite a hefty increase, it was a $10 increase to that pasta,” said Siegel. “I wanted to communicate that to everybody so I wrote a letter to put in the menu.”

He says customer response to the explanation has been largely positive.

“I got a huge amount of responses where people were just deeply appreciating that,” said Pagliacci’s co-owner.

The broader industry continues to face similar pressures. According to BC Food and Beverage, the sector contributes about $140 billion annually to British Columbia’s economy and employs more than 37,000 people.

Siegel says rising grocery prices are directly affecting restaurant operations, forcing owners to make difficult pricing decisions.

Pagliacci’s says it is focusing on transparency and selective pricing changes as it works to remain sustainable while maintaining its long-standing place in Victoria’s restaurant scene.

“If we betrayed that trust we wouldn’t have a business and we’d be gone in a couple of years,” said Siegel.