Turnover in the restaurant, cafe and catering industry rises amid growing cost pressures

shutterstock_138826142Turnover in the restaurant, cafe and catering industry has increased 9.0 per cent, according to retail trade data released by the Australian Bureau of Statistics (ABS).

ABS Retail Turnover data shows turnover in the restaurant, cafe and catering industry has increased to $23.8 billion for the year ending March 2015.

The return to growth comes after an 8.6 per cent decline in turnover.

Restaurant & Catering Australia (R&CA) chief executive officer John Hart said this is a positive result following a softer February trading period.

“February was a tough trading period for operators, even more so in States like the ACT and SA which recorded declines in turnover of 30.8 per cent and 27.8 per cent respectively,” said Hart.

“Retail trade continues to go backward in the ACT, SA and NT, while the larger States have shown signs of improvement.

“NSW continues to be the star performer with industry turnover increasing to $7.8 billion, a growth rate of 14.7 per cent. Victoria and Queensland also recorded positive increases of 12.2 per cent and 10.3 per cent respectively.”

Hart said despite the improvement in trade in most States, the reality remains that restaurant businesses are still in crisis.

“An increase in industry turnover does not mean an improvement in the business bottom line. We know spend per person continues to decline adding to growing cost pressures. We’re seeing people spending less and it’s a concern for the sector.

“While it’s encouraging to see the return to growth, managing increasing costs including rent, electricity, produce and most of all wages continues to be a major concern for operators,” Hart said.

This great content is produced for members of the Restaurant & Catering Association. Find out about becoming a member here.

Restaurant & Catering magazine and its associated website is published by Engage Media. All material is protected by copyright and may not be reproduced in any form without prior written permission. Explore how our content marketing agency can help grow your business at Engage Content or at YourBlogPosts.com.

Post a Comment

Your email address will not be published. Required fields are marked *

Subscribe to our newsletter

Want stories like this delivered to your inbox? FOR FREE!
Give it a try, you can unsubscribe anytime.