Results from R&CA’s latest Industry Benchmarking Report have shown that the cost of employing staff, including wages, on-costs and training costs, is creeping ever closer to 50 per cent of business expenditure. When combined, the total expenditure on staffing costs, on average, has reached 48.1 per cent. With wages and salaries accounting for 39 per cent of business expenditure alone, these sobering statistics highlight the unsustainable growth in staffing costs across the industry and the enormous pressure this is placing on hospitality businesses’ bottom lines.
The Fair Work Commission’s 3.5 per cent increase to the minimum wage also came into effect as of 1 July, bringing the national minimum wage to $719.20 per week, or $18.93 per hour. Unlike many other industry and employer groups, R&CA argued for a zero increase to the minimum wage in its submission to the Commission, recognising the disproportionate impact of minimum wage increases on businesses in service-based sectors such as hospitality.
As business owners grapple with how best to manage ballooning staffing costs, the Association is there to offer helpful advice and practical solutions on how to operate your business sustainably
Mark Scanlan, President
Restaurant & Catering Australia