Magnan Tavern, considered an institution among Montreal eateries, will close its doors for good on Dec. 21 after 82 years.

The restaurant, best known for its roast beef and prime rib steaks, has about 65 employees, including some who have worked at the family-owned business for more than 20 years.

Company president Alain Gauthier blamed never-ending construction work in the area, tough competition and the high cost of beef as factors in the decision to shut down.

The restaurant has seen business slow down over the last decade.

It has also been difficult to recruit staff, often because of taxes and tip-related issues.

Mr. Gauthier said chain restaurants pose a challenge with their ability to buy in bulk and offer lower prices to customers.

Ive seen people in a better mood at Magnan, Mr. Gauthier said Tuesday. People found it [the announcement] difficult but theyve seen that the number of customers just wasnt the same.

He said the rising cost of beef would have forced the restaurant to compromise the quality of its cuts, which was out of the question.

Right in March, we had an increase of 35 per cent in the space of a month, said Mr. Gauthier. Beef is our star product. We cant ask our customers to absorb such an increase in such a short time.

The surge in prices has put restaurateurs in a difficult spot. Some have decided to absorb the costs, while others have reduced their portions or passed the hike along to clients.

See the article here:
Famed Montreal tavern Magnan to close as business falls, beef prices rise

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