Local restaurant managers are reporting solid business for the holiday season, but the threat of continued food inflation looms.

“Rising food costs are keeping me up at night,” said Phil Barnett, president of the Island Restaurant Group.

The latest consumer price index figures showed a 4.9 per cent increase in food prices in July and a 3.5 per cent jump in August.

Mr Barnett may have to put his menu prices up that much to keep up.

“The cost of chicken came down this year,” he said. “But the cost of beef rose significantly.”

He prices dynamically, so has had to continuously reprint the menus to cope with changing price tags.

A heftier electricity bill and hikes to the cost of plumbing and electrical repair have been further challenges.

Asked if he had anything special in mind for his restaurants in the coming year, he said: “It is exciting to just be in business and be able to open our doors.”

On the bright side, by lunch on New Year’s Eve, Mr Barnett reported that many of his restaurants were fully booked.

“It looks like it is going to be a very good new year’s,” he said. “On the whole the Christmas season was solid.”

However, business was a little stronger for fine dining than for casual eating.

“That has been the result of not having the Fairmont Southampton hotel open,” Mr Barnett said.

When it was operating, the hotel was a big driver of last-minute business. Tourists also beefed up revenue Sunday through Wednesday, when locals typically prefer to eat at home.

“We are really looking forward to the Southampton hotel reopening,” Mr Barnett said.

Harbourfront Restaurant manager Pierangelo Lanfranchi said 2024 was its best Christmas in years.

“This season was fantastic,” the Paget business manager said. “Our busiest period for company holiday parties was the first two weeks in December.”

However, he was also concerned about food inflation.

“We just cannot afford to keep our prices at what they were three or four years ago,” he said. “Everything has gone up.”

He has seen the cost of imported lobster go up by 100 per cent, for example.

To stay competitive he has had to be creative.

“I travel extensively, and I am also changing the menu constantly to keep up with the latest trends,” he said.

To counteract the quiet months of January and February, the Bermuda Tourism Authority has organised Restaurant Weeks from January 16 to February 16, with more than 45 participating eateries offering two-course lunches and three-course dinners, with prices ranging from $35 to $69.

Mr Lanfranchi said last year’s event was so successful for them, they have relaunched last year’s menu on January 2, offering a three-course meal for $69.

Simon Boden, area director for sales and marketing at the Fairmont Southampton, said the hotel’s restaurant The Waterlot will also be participating in Restaurant Weeks.

“I cannot speak for all restaurants, but certainly January is the month when the least amount of people overall are looking to dine out,” he said. “Restaurants appreciate promotions like Restaurant Weeks to drive demand from locals and visitors alike.”

Mr Boden said the restaurant’s reopening last month, after several years of closure, was well received.

“It has been wonderful to see The Waterlot full of life again,” he said. “Looking ahead, reservations for January are shaping up well. For those who haven't had the chance to visit us yet, we encourage them to make a reservation in the coming months to experience what makes The Waterlot so special.”

The Hamilton Princess & Beach Club on Pitts Bay Road in Pembroke also had a good holiday. Their New Year’s Eve party was oversubscribed and their tea with Santa and Christmas Eve dinner at Intrepid also sold out.

To get through the slow period, they are also taking part in Restaurant Weeks, and will also be holding sushi classes, afternoon teas and Sunday brunches.

“The Hamilton Princess remains active,” the hotel said.

• Correction: This article has been changed to correct Restaurant Weeks’ dates and price ranges.