Consumers who feel like food prices are constantly rising may be spared this summer when it comes time to eat… ice cream. Chocolats Favoris has decided to freeze prices on its chocolate-covered cones, despite a spike in cocoa prices.
Ice cream lovers will therefore pay the same price for their cone – regardless of the size – as last summer, a first for the company which normally adjusts its prices each spring in preparation for the summer season.
“Normally, when we arrive in April-May, we make a price adjustment to take into account the increase in the minimum wage, the increase in the price of milk, the increase in the price of chocolate,” explained the president of Chocolats Favoris, Dominique Brown, during a telephone interview.
This summer, however, the price needle for what Mr. Brown describes as his best sellers won’t move. Fans of chocolate-dipped ice cream who treat themselves to a cone during their vacation will pay between $5.69 and $8.89, depending on the size chosen according to their appetite. The “baby” cone will be sold at $1.99 for children aged 12 and under, instead of $4.79.
The big boss also ensures that the formats will be the same size as last year. No “reduflation” here. “The number of turns to serve ice cream has not changed,” he assures, a smile in his voice. This is because, every summer, many customers comment to him about the size of the cones which are decreasing, he says. In fact, nothing has changed.
He acknowledges that this decision was influenced in particular by the change in customer behavior, more than ever sensitive to promotions. “After the pandemic, the number of store visits fluctuated enormously, sometimes up, sometimes down. With the rise in interest rates, there was an impact too.”
Mr. Brown notes that consumers are still eating ice cream or chocolate, but are choosing cheaper options.
However, “after years of stability at around US$2,500 per metric ton, the price rose to US$4,200 by the end of 2023, then to US$11,000 per ton in mid-April. And the fluctuations continue,” according to the company.
In such a context, how can the Quebec chocolate factory be profitable if it freezes the price of its cones? “We make our cocoa purchases well in advance,” explains Dominique Brown. Months and months in advance, we will commit to purchasing a certain quantity. We have different mechanisms like that which will allow us to protect ourselves in the short term from the impacts [of the price fluctuation] of cocoa. »
Furthermore, Chocolats Favoris continues to open branches and aims to have a hundred chocolate shops by 2030. “We are restarting the expansion plan planned before the pandemic. »
Present in Quebec, where the company has 52 stores, in Ontario and British Columbia, the chocolate factory will soon have two new addresses in Vancouver.
“It was always the plan to get out of Quebec, to take this brand further. I would like to point out, he insists, however, that we continue to be called Chocolats Favoris. »