KITCHENER -- A new forecast says grocery costs will increase by three to five per cent next year due to the COVID-19 pandemic.

Robert Beausoleil, owner of Robert's Fresh and Boxed Meat, said it's been a tough year dealing with the costs of COVID-19.

"We've had to increase wages just to keep people here," he said. "We've had to add positions."

Beausoleil said they've hired someone to watch the door, along with spending hundreds of dollars a week on cleaning supplies.

Experts said those added costs will result in higher food prices next year.

"The biggest increases that we've ever predicted in the 11 years of our price report," said Simon Somogyi, Arrel Chair in the Business of Food at the University of Guelph.

Somogyi was co-lead for the 2021 food price report.

"It's been a very difficult time for the industry," Simogyi said.

According to the report, the average family of four could pay up to $700 more for groceries next year.

"The more outbreaks there are in the plants, it creates production issues which means there's less supply," Beausoleil said.

He said he hopes shoppers won't see too much of a price increase at his store.

"If the markets do go up like that, we just buy a little bit less and we just wait for the markets to come down to buy a little bit more," Beausoleil said.

Anyone looking to save money can use the Reebee app to find nearby flyers.

"Allowing users to browse on a weekly basis, search for specific items, find the best price," Mark Smith with Reebee said.

The Kitchener-based company said it saw a 20 per cent increase in downloads last month, suggesting that people are interested in saving money.

"We save families $3,900 per year just on groceries," Smith said.

The report said meat, baked goods and vegetables are likely going to have the highest price increases in 2021.