This has been one of the most challenging years for restaurants since 2021, the head of a local restaurant chain has said.

“Top-line revenue is down for most restaurants, anywhere from 5 per cent to 15 per cent or more,” said Philip Barnett, president and managing director of the Island Restaurant Group. “Costs are up and already razor-thin bottom lines are further squeezed.”

He said this was not just a Bermuda problem; the American restaurant industry is also struggling.

“Inflation has massively hit all of Bermuda restaurants’ critical cost inputs, with the largest impacts being seen in food costs, employee benefits such as health insurance and utilities such as electricity,” Mr Barnett said.

A number of global crises have impacted local restaurants this year, such as import tariffs introduced by US president Donald Trump.

The price of beef has been pushed up 15 per cent, year-on-year, due to tight supply and tariffs on American imports.

Avian flu impacted the cost of eggs, which rose by 30 per cent owing to tight supply from culling.

Meanwhile, global weather brought instability, such as droughts and flooding in Brazil, which led to a 40 per cent increase in whole bean coffee prices.

Mr Barnett said adding to that there were poor tourism figures.

“There were fewer cruise visits worsened by cancellations because of multiple hurricanes this year,” he said. “Air arrivals have also been hit by the continued closure of Fairmont Southampton hotel and Elbow Beach Hotel, making it a poorer year for many.”

He said less money spent in the Bermuda economy hits all service industries not involved in international business.

The restaurant executive added that keeping a tight labour supply with restricted job categories, in an economy with only 1.3 per cent Bermudian unemployment, was damaging.

“It means that heavily labour-dependent businesses will not be able to convert any uptick in business demand due to a lack of staff, or worse, will force more inflationary increases at the worst possible time due to an unreasonably thin labour market,” he said.

However, he remained optimistic about the opening of the Fairmont Southampton resort next year and the impending start to the renovations of the downsized Elbow Beach Hotel.

He also welcomed pledges from Jason Hayward, the Minister of Economy and Labour, to get Bermuda’s resident population increasing and trending back up.

“That will create jobs, pay taxes and support and shore up a younger demographic to address Bermuda’s unbalanced and unsustainable ageing population,” he said. “Things will improve if we make the correct policy decisions.”