Australia’s restaurants and caterers are spending 44 cents of every dollar earned on wages and salaries, according to a major industry survey just released. The survey by industry representative association Restaurant and Catering Australia reveals that staffing costs are the greatest barrier to business development with the cost of wages having grown from 35.7 per cent to the current 44 per cent of turnover in the past five years. R&CA said the increase is a result of both wage pressure, brought about by skills shortages and industrial relations reforms that have seen significant increases in wage levels in the industry. R&C chief executive officer John Hart said the increases in wage costs were not sustainable “when a very large number of businesses are making very slim margins”. “Restaurant, café and catering businesses have lost any flexibility in their employment practices and now have very few options but to cut hours or reduce staff numbers to stay afloat,” Hart said.

7th March 2011 www.hospitalitymagazine.com.au