A new report has revealed that almost half of the surveyed restaurant owners say their financial position has recently changed for the worse.
The report combines data from the Restaurant and Catering Association, Mastercard, and Uber Eats to reveal the longtail economic impacts of covid on hospitality. The findings drew insights from almost 60 thousand small business operators and over 300 thousand people in the sector.
Largely credited to slowing consumer spending, 44 per cent of restaurant owners reported feeling as though they’re in a more difficult financial position than at this time last year.
“The longtail impact of the coronavirus continues to ripple through the economy. Deferred impact has appeared in the form of higher rental costs, growing insurance premiums, increasing utility and wage bills, and more expensive raw ingredients,” says Uber Eats ANZ General Manager Ed Kitchen.
The biggest concerns differ across Australia; in New South Wales, 20 per cent of respondents were negatively impacted by supply chain disruptions. In Tassie, 33 per cent saw a reduction in customer discretionary spending, and the NT and the ACT found labour costs and wage pressures to be the most challenging factors impacting business.
While each state and territory expressed unique pain points, recurring issues nation-wide included utility bills, rent increases, supply chain disruptions, and labour shortages.
Staffing continues to be a major issue, with nearly one in three respondents having extreme difficulties hiring staff.
R&CA CEO Suresh Manickam described the current factors impacting hospitality as “one of the most challenging economic landscapes in recent history”.
Despite the current pitfalls, owners are optimistic. With expected interest rate cuts and falling energy prices on the horizon, 43 per cent believing they’ll be in a better financial position next year.
The joint report is available to download here.
Laura Box
