In the past month, four major hospitality venues have announced closures: Bistro One Eleven, Ortiga, Sardine Tin and Piaf. Whilst media outlets are labelling our hospitality scene as ‘the struggling industry’, we’re not quite so sure.
Owners have told The Courier Mail that rising electricity, rent, staff penalty rates and car park costs are the primary reason for closures, as well as a lack of revenue to cover these expenses.
However, don’t let the ‘struggling hospitality industry’ headlines fool you – our industry is full of opportunity for savvy business owners who are flexible, creative, and willing to listen to their customers.
One Brisbane resident (who works next door to Bistro One Eleven) commented on the news article, saying, “…A muffin at [Bistro One Eleven] was $6.50, and at the (since closed) Coffee Club across the road – $5.50, and at the place on the corner of Elizabeth and Creek, just $4.50 – and they bake their own, on the premises, every day, not delivered in from the suburbs. All within 100 metres of each other…”
Increased competition is a sign of a growing industry – and if businesses that can’t compete for customers have to close, it’s just a normal part of a market economy.
The average Australian still spends $70 a week on dining, so where’s all that money going? To the businesses they enjoy most.
One restaurant owner told The Courier Mail “We noticed people were more likely to eat out for breakfast and decided to open up the restaurant to all hours to cater for it…Since then we have more than doubled our revenue and always have customers coming through the doors.”
Mandy Sutton, owner of Reef Point Café, Scarborough, recently told Redmako, “I think people want to go out and spend less money. They don’t have the money they used to have when they’d go out to high end restaurants….I don’t think you can charge the $30 – $35 so much anymore for meals. Whereas the Tapas way of eating is a way that you can enjoy different meals for a smaller amount. I think that Tapas bars are going to get bigger and bigger.”
“I think that the hospitality industry is going to continue to grow – in Australia people are enjoying eating out more and more. You speak to a lot of people in retail and they say that it has been quiet. I think that it will definitely pick up and I think that people eating out in cafes and restaurants like ours is going to increase,” Mandy suggested.
Owner of Aunties’ Café, Ipswich, Arlouise Brooking also predicted the breakfast trend.
“For us at Aunties Café the biggest trend is weekend breakfast. A lot of families are coming out on the weekend having an early breakfast and either going and doing their sports or a bit of weekend shopping and just spending time together,” Arlouise said.
Whilst costs are rising, the industry is still ‘flourishing and growing’ for those who wish to find new ways to increase revenue.
If you’d like to find out more about saving on wages and increasing your revenue through Redmako Learning traineeships, give us a call today on (07) 3339 1400.