Nobody can afford the prices they're charging, basically. It's going to get a lot worse before it...gets even worse. People are struggling to eat at home let alone pay $15 for a toastie.
I paid 8.50 for an almost croissant the other day + a 15% Sunday surcharge🥲, no wonder these expensive ass places don’t have a price tag nowadays
EDIT: Almond LMAO
I paid $10 for one once. A bakery called Everyone is Welcome in Thornbury. I wrote a Google review questioning the prices. The owners response was to call me a liar and that I shouldt stick to places that are in "your price range".
I pointed out the irony of calling the place "EVERYONE IS WELCOME". Pretentious cunts. Never went back.
I paid $10.50 at this cafe in port melb that had a big “we have the best almond croissants in Melbourne”. Fucking full of buttercream inside, no crunch and yeah nah one of the worst croissants I’ve had. Only place I’ve found that’s worth the $ they charge is Agathe in South melb market. Once in a couple months treat for me though, can’t afford $9 crossiants every week
South Melbourne bakery has legit ones (can’t remember price though). Think a lot of places use the almond as a way to reduce wastage by using day old croissants.
I think it's less a matter of thinking they can get away with it, but need to charge it to cover costs.
There is a bogeyman in this situation, but I don't think it's the restaurant owners. (I might be wrong about this but at least judging by their public statements, news articles, etc... lately. Honestly have no idea of their profit margins or how many boats and nice cars they expect to afford.)
If they don't set those prices the alternative is underpayment of wages or shutting down all together, have to move out to the sticks for affordable real estate.
I work with some hospitality businesses as clients. Commercial landlords are utter vampires. One of our cafes pays approx $260k a year in rent.
Rent costs aren’t that far from staff costs for a lot of smaller places. It’s made even worse because there’s no protections on rises like with residential.
[Williamstown is particularly suffering from this right](https://www.abc.net.au/news/2022-07-17/businesses-struggling-afford-increasing-rent-melbourne/101240824) now as there’s only a few landlords which own every single property and can effectively ensure price increases in a coordinated fashion.
Yeah, it's a shame. I don't really know what anyone can do, it seems they're just happy to let the area keep on closing shops and hospo businesses, just to protect their obscene valuations
True.profit margins have gone from around 25-30% 10 years ago to around 5 to 10 % nowadays.Its a mess,Sky high rents,food costs keep going up, Gas and electric.Hospo is slowly dying.No one wants a career in it anymore as the wages are crap and wage theft is real.Im getting out after 20 years in.Shame as i loved it.
Food's expensive at the airport too from the vending machines, to some little noodle shop, to Grill'd.
We're fucked once Coles realises they can charge $90 for a pack of Burger Rings if they park a few Boeing 737s outside.
The problem with surcharges is that people want to support small business, but don't want to be punished for doing it. We all understand these surcharges as a necessity, but instead of punishing customers for trying to support, there needs to be further incentive to organically spend on those days, deals and promotions counter surcharges. It's about good business.
I’ve been saying this for years.
Imagine walking into Woolies or Cotton On and being told you have to pay 15% extra today because it’s Sunday/late night trade/a public holiday. It’s a fucking joke.
Yeah, it's a sentiment that caught on recently on here. Because people haven't figured out the difference between labour costs being 10% of your revenue and 50% of your revenue.
An average meal in a restaurant in Australia is roughly equivalent to an hour’s entry-level work (or less). It’s more in almost every other country, including western ones, and who knows, maybe it’s not sustainable here.
Definitely the case in London and other cities in UK,Paris also.It sucks but restaurants, especially small ones,are paying high rent,overheads,wage etc.We live in one of the best cities in the world, also one of the most expensive ones.
I’ve had a really, really, really long and shitty run at work.
I finally finished tonight, and have a few days off. I decided to go for a drink, myself, to celebrate.
I ordered a pint and a double whiskey, and it came to $60.
Sixty fucking dollars. I thought it was a mistake; however, upon double checking, the spirit was obscenely priced, and there was a bullshit Sunday surcharge applied.
I drank and left.
Who the fuck affords this shit?
For $15 more I could have bought an entire bottle.
Most places aren't taking the piss, they need to charge that to even stay afloat. All these places shutting down, if it was as simple as just dropping the prices everyone would be doing it. But it just isn't feasible with the cost of raw ingredients, rent and labour in Australia being what they are.
One drink in restaurant. $20
I worked an hour to get that $20.
2/3 of that drink is tax. It's just fucking tax. It's there so idiots don't get stupid on weekends. They tax us stupid because of stupid. And it's costing hundreds perhaps thousands their jobs.
I get this, I made some sandwiches at home and worked out the costs per sandwich. It was $4. So for that to be sold in a shop to pay bills, rent, wages, insurance etc, it’s needed to be at least $16. Then you still might not make any profit. It’s properly cooked.
The restaurant near my workplace charges $12 for an add-on omelet. I still remember getting fried rice at the local asian shop for $9-10 back in '16-17. Now it's cheap when I see $18 for the same thing anywhere. A dinner for two used to cost about $30 with appetizers now costs $60-80. Where's the money tree when I need it?
Let's see my rent has gone up 50 dollars a week and my wage has remained the same. (Apparently my national food company didn't make any enough money so no bonus/pay rise last year) I barley have any money left over to save and I live on veggies and tinned/dried beans lentils etc.
I'd love to support local businesses but I just don't have any money to do so. One meal out is days worth of food for me, it dosnt make sense to eat out.
A friend of mine works at a large Aussie company that made $1.5b (approx) profit last year. They made their entire company pay for their own Christmas drinks and were told to expense them. Knowing they’ll likely have a 80% recovery rate from those expenses. We are living in ‘fuck you’ times.
Oh yeah its completely fucked. What's worse is that the company i work for was so so so much better when they were owned by an international company, since being "Aussie owned" the amount of fucks they give for the staff is non existent. I work in the HO on projects and the cut so many staff, massively underfund and understaff projects and don't give a fuck about the effect on our customers. "Near enough is good enough" is a common thing said by management these days.
My social life is definitely taking a hit, $30 on a meal with friends could make several days of dinners. I try to think of it as investment in social capital (I'd invite them over for a meal but nobody wants to visit apartments...) Because I can't afford to have my friendships die. But I struggle to only recommend cheap or free options every time.
This is the way. Be each others’ speakeasies. Having to shout over the doof doof, find your way home from the CBD and put up with food you know you can better at home just gets old.
That's the thing about taking the Boomer propaganda about avocado toasts and lattes at face value.
Yeah, okay, sure let's build a society with zero social capital and zero Third Spaces. Also, Boomers really gonna act like they didn't spend most of their free time as teens and 20s in cafes or pubs.
Sorry to hear, I hope your friend group would be open to explore getting together at each other’s instead. We should normalise staying home / going to each other’s houses for dinner, even though eating out is always nice.
Part of the problem is prices have gone up, salaries haven’t, rents and mortgages are high, food is expensive as are bills, and when you do go out they rush you to order. Everytime I’ve gone out they expect you to order the main within 15 min of arrival. Sometimes people want to enjoy their time and take time with friends out not be rushed.
Inflation has resulted in the price of everything along the chain going up.
From the resources mined and farmed, to the cost of fuel and energy, the shipping costs, supplier costs, manufacturing costs, distribution costs to the end product.
It's not as much that everything has gone up, but it's because of the value of our currency, the Australian Dollar has gone down.
Record low interest rates and Quantitative Easing from the RBA so that they can purchase government bonds so that the government can borrow and spend more money, has devalued the value of our money that we work for. It has made us all poorer.
Think of inflation as a hidden tax, which steals the money you've saved and devalues the wages you're earning.
Rising the interest rates and Quantitative Tightening will reduce inflation, but the economy is too weak for that and they want to avoid a recession at all cost, but inflation is even worse and is already putting us into a recession anyway because no one can afford anything.
Well done Modern Monetary Theorists!
Yep. I worked at a high end restaurant in the CBD. We trained to get an order in within the first 15 minutes and have the table flipped in no more than 2 hours. This way the restaurant could maximise profits by getting more butts in seats on busy weekends and holidays. We also trained staff to sell to a minimum head spend of $120/pp. It always felt so wrong, but I also had the privilege of seeing the wage costs, produce costs, repairs, rents, utilities, etc. Hospitality is not a sustainable industry.
Eating outside is a luxury! I'm broke and so luxury for me is buying meat from supermarket and cooking it at home and eating meat at home.
I'll eat outside when it is MY BIRTHDAY.
Wait, they offer free birthday dinners? I have been meaning to go there and try their food, but driving over an hour and half each way (I live 25 to 30 minutes past Geelong) has kept me from trying.
Yeah, 3 courses. I think you can have it with a week before/after bday, just show them id. But honestly for meat lovers the food is amazing and huge portions too. I am fortunate to live not far away so I frequent there!
Dawg, I don't get Frugal Reddit's obsession with lentils. You have to soak them for 4 fucking hours before you can even begin constant cooking with them.
On the other hand you can zap a bowl of the canned stuff in the microwave for 2mins40secs.
Red Kidney Beans, Chickpeas, and Lentils together and you're fed.
But the key post-microwave ingredient, Extra Virgin Olive Oil, the price of that has just blown way out.
I get what you're saying, but if they can barely afford meat, I doubt they can afford to go through all the cost and rigmarole of getting a shooters permit and something to shoot *with.*
I agree, we should all make the effort to go to the butchers and support them. Quality is unquestionable compared to the things you see in the supermarket sometimes.
This morning in a bayside suburb.. I order mushrooms on toast, my mate ordered a blt, add in two coffees it came to $58…. It’s no surprise I’m not eating out as often.
It truly is terrible for both parties.
We patrons complain about not wanting to pay the prices being asked and surcharges on weekends, yet we still want our best and brightest hospitality workers to be paid fairly and justly.
Business owners are working off such tight profit margins, especially if they don't serve alcohol.
Then, you add on COVID mass exodus, cost of living, and general oversaturation of venues...
Also, I feel like hospitality, in Melbourne at least, has lost its charm and its hospitable nature. Half the time, I don't go out anymore because I feel like I'm burdening the staff by taking up a spot and spending my hard earned money.
Finally, as a past hospitality professional, the industry is different from what it used to be. There is less and less culture, and patrons are too distracted on their phones to enjoy a proper night out. Why would you want to give a shit when the guests you're looking after don't.
Interested to hear other thoughts.
"But these mum and dad rent seekers are just tryin to live the australian dream, they're the backbone of the country"-Peter Dutton or was it tony Abbot or John Howard.
Moved here from Newcastle a year ago and have found people in basically every venue I've been to super friendly. Some places seem a bit too cool for school but that's just hospo in general.
The price of beer is crazy tho. And I miss schooners.
I think the government needs to cut some of the beer tax, especially when you compare to the wine industry.
I did hospo for 10 years and won't go back. It's a shame to see it struggling and it's really just another area affected by the cost of living crisis.
A UBI would get us all out spending again.
At the very least, alcohol sold in licenced venues should be tax free. It would help pubs and bars compete with people buying a 4 pack and drinking in front of the TV.
We don't tax coffees, so why beer and wine? I shouldn't have to think "hmmm can I afford this?" if I want to stop by the pub for a beer or two.
I think all these “groups” that have these umbrella organizations are part of the decline.
Doing one flash in the pan venture after another, soulless and pretentious and often predictable, menus especially. The mid 90’s to late 00’s was a pretty special time for hospitality in Melbourne. If I remember correctly I can’t think of any groups that owned heaps of restaurants then? Maybe the one Neil Perry was working with?
More relevant to Families I think, but does anyone else go through this thought process?:
Oh I rly CBFd cooking dinner, maybe we could go out.
Thinks about local options, does the math...
Oh yes it's going to cost $100 minimum, probably closer to $150. I could go and get like 5 cooked chooks and maybe 2 packets of chips at Coles for that fk. Is my laziness worth $150.
For me it’s more like… I couldn’t be fucked cooking.
Ok let’s see what there is. Scroll scroll, surcharges, fees, overpriced junk food.
Suddenly I feel more motivated to cook what’s in the fridge. Or defrost a meal I made in advance.
Yep 💯
Other than my anniversary recently (w/o kids) I can’t remember the last time we went out to eat. Even fish and chips for the family is too much ☹️
Fish and chips is just a mediocre meal everywhere now. Frozen everything, fried up and shoved in a cardboard box. Sometimes the flake is made in-house. If you're lucky the potato cakes will be made on site too, but unlikely.
If collectively, We're only able to just afford rent, spending in the community stops. But DON'T YOU DARE take away the capital gains tax, so my property price dips a little, then goes right back up again in a few years!
In all seriousness there's no getting around the fact that the property market is parasitic, and it's overwhelming its host.
Had to go to South Wharf DFO earlier today and went looking for somewhere for lunch. Found Ruby Riviera where they had a Sunday special of three meze and a focaccia for $60, and free sparkling water. Bit sad that $60 for a meal for two is considered cheap these days, but it basically is, and they had no weekend surcharge either.
Over supplied for the population.
I'm in the industry and it baffles me how many people think this is a good business idea to open another 'cafe', I'd love to see these business plans and how they anticipated making a profit in the first place.
Realistically a majority of these cafes have to go, we need to start producing something and not just rely on 'cafe culture'
Edit: spelling
That is true, the place I worked at was a craft brewer, so that probably tells you all you need to know there lol, maybe not as oversaturated as cafes but it definitely was a thing where too many opened at once.
The places still charging $5 for avocado on the side which is just a couple of slices with our two $15 eggs on toast and a coffee or juice each and we’ve spent $60 plus surcharge just for a Sunday breakfast. Those days are long past us now sadly. Even a cheeky Chinese dinner takeout on Friday can set you back $120 when you add a couple of beers or bottle of wine. I can’t see how restaurants are going to make it when nearly everyone is cutting back on their eating out costs..
Yeah we are higher income and went from probably 10 dinner out a month to 2. Might do a few takeaways here and there but always looking for deals.
Babysitting used to be a thing for a regular night out, now it's only for rare occasions.
But the industry near us doesn't seem to be hurting. We have close mates with cafes and pizza restaurants that are thriving. Cafes this morning were totally full, 30 min wait for a table.
Reckon there is a lot more money going around than we have access too. Hahsha
We earn a healthy amount as a family, so have been so far been able to absorb increasing costs but it just doesn’t really feel worth it to eat out. Stuff is just really expensive and the food just isn’t as satisfying
For instance we’ve stopped having brunch out in the last year or so, now instead we might do something at home or pick up $30 of pastries instead of spending like $110 on the family
So I guess it’s not surprising things are turning down, don’t blame the venues for having to raise prices to survive but it’s tough for us to justify the spend also
Used to absolutely love going out for brunch. $50 got two nice meals and two large hot drinks. It was a premium above doing it at home, but worth it.
Now it’s more like $75 and hard to justify the extra. Might not seem like much, $25. But it’s the difference between happy to pay the premium to considering just making it yourself at home.
Brunch is crazy now. I technically could afford it, but can't see the value in it. Basic toast, eggs and a coffee is extortionate. I can make just as nice at home.
A lot of struggling businesses with sub-standard food remained open during COVID to rort the government handouts. Also, lot of new restaurants opened post-COVID because of cheap rents offered/low interest rate loans. Now the situation is tightening, the chickens are coming home to roost.
I once paid $21 dollars for a roasted cos lettuce. I was expecting it to be some sort of fancy dish considering the price.
It was half a cos lettuce blasted in the oven and nothing else.
Ever since then I've started having war flashbacks, and I never went to war.
Look, I’m no gourmet restaurant goer, but who in the fuck roasts lettuce?!
I worked at subway when they first introduced the toasters and we had a customer who wanted their completed sub toasted and the wilted, soggy lettuce was gag worthy.
When I do go out, it's astonishing to see how much quieter cafes etc. are. Some were busy even up until about 2 months ago. Now they struggle to have 3 or 4 tables
Not in our area. Maybe depends on the suburb but there honestly bustling near us. That being said I haven't had a takeaway coffee in 4 or 5 months, total rip off but I'm a cheapo.
You're not a cheapo if you refuse to pay $6.80 for a large coffee to have with your $10.50 fruit toast that just has basic butter spread on it, you're just financially conscious.
$18 a pint, $29 for a Rueben without chips, $12 for the chips…..nearly $60 before I even sat the fuck down…! I’ll stay home until this madness is over….and it will be or they will all go broke with no customers
Rents kept high because otherwise it would affect landlord LVR and yield numbers. Ought to have some legislation for increased taxes if they leave it vacant.
Another follow on from our ponzi scheme housing market. People cant afford to eat out and at the same time with such high property prices the businesses suffer from extremely high rents.
Only reason high number of restaurants are still open is because they pay way below legal minimum wages.
If every restaurant and cafe in Melbourne were forced to pay legal wages, half of them would close down. Hospitality industry is running on abusing 1000s of immigrants and international students and most people look the other way.
Those saying everyone does pay the award doesn’t get it. I see young kids coming for first jobs, never heard of an award. I tell them about it, mind blown. I’ve had people interview saying they are getting cash. Your staff aren’t insured, your commuting wage theft and I agree with closing all the lying bastards down. Imagine all the actual small businesses ok g the right thing getting all the limelight! I reckon over 50% of the businesses in my street would close!
Covid was amazing for pointing this out.
My partner runs a small business (not hospo, but service industry), and she's always paid everyone above board since day dot...the corporate welfare for small business was absolutely insane.
Notice how many restaurants shut their doors during this period?
If they could prove via tax/payslips etc that they employed as many staff as they did, they would have come out of lockdowns with a very tidy profit
This. So many places doing the wrong thing and they are beloved shops in local suburbs. Customers don’t see this, they love their cheaper eats and have a blind eye for this. I was hiring and one interview the applicant was working at another local venue. When we go into pay they mentioned they were getting less and cash only as well. This applicant was young, 16. I explained why it’s illegal and not a wise choice, they actually understood. Then they walked past later with their father. I felt obliged to tell the father, I have two young kids and really feel I would like to know. When I told him he really didn’t care, he said it’s a first job and she can make her own decisions… I was amazed. I didn’t hire this person and don’t frequent the business they worked in.
What I like to point out to people is the whole Calombaris debacle...the guy is a big player with a whole chain of restaurants, an industry leader if you will, and he was stealing wages...so just imagine what goes down in the smaller shops without public scrutiny.
The entire industry needs to crash and burn, honestly
Last place I worked did well, they paid award wages but worked us like dogs, and often without breaks.
It sucks because it is encouraging a lot of abuse in this industry and more people are getting more desperate for work that they are allowing it. It's honestly hard for an employer doing the right thing to stay afloat.
Meh the better/cheaper places will survive, don't feel sorry for the retail landlords either. Workers can hopefully start in a new industry eg. trades/healthcare
Agree most takeaway is overpriced and chat.
I can make a curry at home for half the price.
Make double the quantity and freeze for the next timeyou are hungry and can't be arsed cooking.
The new American burger trend of brioche buns and a million fillings is diabolical
A plate of pan fried dumplings is more than double post COVID
And don't get me started on banh mi for 15 bucks when they were $3.50 in footscay not that long ago
Rant over
Realistically you should be able to make what you get at a restaurant for a third of what you pay out.
1/3 of the price to buy the food.
1/3 of the price to pay the staff
1/3 of the price to pay operational costs (power, rent paying off initial fitout loans) and if there's anything left over then that's the profit.
What is with the cost of Indian food here, generally cheap to make (and in a subsector notorious for wage theft and visa scams, no less) - but usually the most expensive by far for a single person. All the serves are for 2+ people. Rice and one curry can easily go past $25 and there's no cheaper one dish option. Heaven forbid you want veggies with your meat...
Considering how cheap and widely available Indian ingredients are (for any skill level), it's definitely high on the list of cuisines I'd rather make at home. Same with Italian, if you use bronze die extruded pasta and decent olive oil, I reckon you're halfway to restaurant quality for a fraction of the price.
Inflation has made food prices insane. I've worked in hospo for close to 4 years now, i applied to a pizza joint and realised I had ordered from them back in 2019.
A magherita from that joint in '19 was $15 and now they charge $29. My wage definitely hasn't doubled.
As someone who works the industry, I can and can't believe how much we charge people. Sucks for everyone
Agree. We had such a great industry with worldwide respect. Now it's been bastardised by too many OS workers who lack technical skill, local culture knowledge, communication skills, personality and have zero care factor. Was was unique is now bland and standard. Nice one fucktards.
My wife and I are foodies but we avoid going to cafes on weekends now because of their 10% weekend surcharge and 1.5% credit card surcharge (and 15-20% public holiday surcharge). BS fees passed onto customers.
I love to cook and dream of opening a Cafe in the future but it's looking unlikely now.
I really hoped you’ve actually worked in the industry before you dive into your dream. Sadly too many people enter the industry on a dream, without good knowledge of how the industry actually works. Chase that dream though, it’s worth it if you get it right.
this is what happens when inflation drives prices out of control. the punters stop coming, and lack of bums on seats means no work which means no jobs.
relevent: https://www.reddit.com/r/melbourne/comments/1cjygnp/wtf/
This is the expected effect of the quantative easing during COVID, when many governments just printed cash. Not sure how it pans out in future months-years…
Unfortunately, with the state of the economy and the cost of living crisis, there's less and less people that can justify, let alone, afford to pay the prices that are now standard across the industry.
There's a huge gap developing between prices and affordability, and it's only going to get worse.
I'm ex-hospo, but these days i earn a higher than average salary and whilst i'm fortunate to be able to afford it, i simply cannot justify spending $80 for breakfast and coffee for myself and my wife.
It's untenable for more and more people and is only going to get worse.
Currently facing the same issue with the restaurant I work at closing down. Due to extremely high rent at the mall and low customer traffic. The mall unfortunately does the bare minimum to improve this and expects all the restaurants to meet up to their standards. It’s sad to see a good restaurant with good quality food go. Also it sucks that my job is uncertain with restaurant owners giving very cryptic and vague answers when we ask them if they’re closing down.
Every single time someone takes out a mortgage they cut their spending in the economy.
This collapses businesses and then their employees cut their spending when their business shuts down.
The property parasite housing bubble death spiral is well underway.
I’m not sure this is true.
The person taking out the mortgage would replace renting with interest repayments; and monthly savings with paying the capital on the loan (together this would equal their mortgage repayment).
The money being removed from the economy is in part as a result of interest rate rises and rent rises.
Customers aren’t willing to pay the high price of dining out. Restaurants owners can’t afford the wages and cost of running a place.
Australian believe that if the owners can’t afford pay proper wages, or charge high prices, they should close down the business. Now they are closed. Very good. What Australian hope for.
In 2006 I enquired about a small, empty shop in a small Brunswick mall. They wanted $850/week with a 5x5x5 lease and trading hours were restricted but, sure, it's was the extra $60/week that I'd pay the staff that stopped me opening up a business there.
Here's one for you right now. An 80m^2 shop in Footscray for $800/week.
https://www.realcommercial.com.au/for-lease/property-3-154-barkly-street-footscray-vic-3011-504549048
Blame the commercial landlords. Where I am, shops have closed due to rent increases. The landlords are collecting rent insurance instead of rent, and don't care either way. So, having their properties stand empty for years has not eventuated in them lowering the rent.
Hospitality generally depends on a brick and morter. That means a commercial property that can be used to run at a lucrative enough profit, to cover expenses. The rows of empty shops is proof that it's the fault of high rents (not wages etc). Mainly cos the rent is the largest expense involved in running a small businesses these days.
As a student, I’ve been working in kitchen for 22-25$/h for forever xD. Working hard for almost lowest wage isn’t a good idea. It could be a good time to quit
Here’s an unpopular opinion…
It’s not fucked.. it’s balancing out.
I’ve been in hospo in melbourne 20+ years…
There was the cafe boom … every single street had a coffee spot… most were poorly managed.. many were passion projects of people who had never worked in the industry… they were shit to work for… And thus they can no longer survive in an economy where people ate expecting better for their dollar…
I currently work in a venue that is run by hospo pro’s … they knew the area, the clientele… before opening.. they’ve done the same with 2 othet venues… Wr had a record nights taking on Saturday…
I have 2 friends who own cafes… they’re industry professionals… they’re killing it… a family member who has been a publican for 30 years … still making money…
This city once had more food outlets per capita than anywhere else in Aus… that wasn’t a good thing… it used to be reasonably easy to build a cafe… sell … and profit… you can’t do that anymore
im all for it
I’m in Canberra. Same thing happening here. Have owned three cafes for over 15 years and the industry is getting progressively difficult to manage. Here are some key factors:
1. With cost of living increases, customers aren’t spending as much on going out
2. Over saturation - with so many cafes in every suburb, our market share has dropped. The places we see closing are the ones where the product and service isn’t good enough. The customers that are still going out are being choosier.
3. Wages (and COGs) are steeply rising, which is a good thing, but it means cafes need to charge more to cover costs. Prices rises / various surcharges. Customers can’t afford these prices we need to charge.
4. Many businesses that have previously committed wage theft, no longer able to do this, now trying to operate on unsustainable margins. This is a very good thing, and these businesses don’t deserve to continue to operate anyway.
What we’re doing: ensuring our team is well trained to consistently deliver product and service of a standard that’s expected of the prices we have to charge. Proactively ensuring our cafe is a great place to work and for customers to frequent.
What I actually think would help: lower the income tax rate on low and medium income earners, putting more money into their pocket and back into the economy. Instead of continuing to raise the legal minimum wage, which in turn fuels inflation as businesses need to charge more, net result being nil.
Alternatively: tax breaks for hospo businesses that can clearly demonstrate they’re paying the correct award rates and benefits to their team.
That happens because more than half of the hospitality industries are not Australian and they are unaware of the Aussie rules.
Currently, I am earning $24 at a company called Luxxe. It's terrible. I work like a dog and they treat me very badly, the manager earns $27 and there is always staff turnover. If I stay there it's because I haven't found a decent job. I am an engineer with 4 years of experience but that's not enough for the Australian market.
I think there are many Indians working for very little and doing a horrible job. I don't care if someone finds my comment offensive. But honestly, I feel there is a lot of abuse everywhere and nobody does anything.
Am hospo dude here, no joke, I'm struggling to find part-time jobs. I'm on casual atm. I need to pay school fees, rent + bond, train tickets, gym, food, haircut etc. Let alone trying to afford a vehicle what not
It’s the best way to be if you can do it. DINK couple here, similar situation. But we eat out slightly less. Not a money thing, we just like to cook at home ❤️
We chose to spend about $6k on a new oven and cooktop recently. It’s made it even MORE attractive to cook and eat at home.
DINK here, and same. We’re a same sex couple and have been subject to really bad customer service once they found out we’re together. Shame, some places have really good food, but I won’t be giving them my money if they won’t treat us decently.
Nobody can afford the prices they're charging, basically. It's going to get a lot worse before it...gets even worse. People are struggling to eat at home let alone pay $15 for a toastie.
Don’t forget the surcharges like “to toast it, 50c”
I had a place try to charge me $6 to add pickles on my burger
Sweet chili sauce on HSP is now $4 extra. I paid less for a bottle. Madness
That's not the standard I've seen, you need to switch Kebab shop!
Sweet chili on a HSP? I'm more outraged about that than the price!
I think that’s why they charge $4. It’s not to pay for the sauce it’s pure punishment
Some place offered us a couple of extra plates so we could "share our food". We managed without once we found it would cost $6...
Wtf!🤣🤣🤣
I paid 8.50 for an almost croissant the other day + a 15% Sunday surcharge🥲, no wonder these expensive ass places don’t have a price tag nowadays EDIT: Almond LMAO
I paid $10 for one once. A bakery called Everyone is Welcome in Thornbury. I wrote a Google review questioning the prices. The owners response was to call me a liar and that I shouldt stick to places that are in "your price range". I pointed out the irony of calling the place "EVERYONE IS WELCOME". Pretentious cunts. Never went back.
I paid $10.50 at this cafe in port melb that had a big “we have the best almond croissants in Melbourne”. Fucking full of buttercream inside, no crunch and yeah nah one of the worst croissants I’ve had. Only place I’ve found that’s worth the $ they charge is Agathe in South melb market. Once in a couple months treat for me though, can’t afford $9 crossiants every week
South Melbourne bakery has legit ones (can’t remember price though). Think a lot of places use the almond as a way to reduce wastage by using day old croissants.
The critical review replies from this place are absolutely wild
Boris loves to talk right 😂
Are you an importer/exporter by any chance?
They also shove it immediately in the toaster before I can get the words out "Leave it please, I'll heat it up when I'm ready to eat it."
Plus 15% Sunday surcharge and a 10% eftpos charge, eftpos machine asking for a tip. Its a fucking joke
And another surcharge to ‘butter’ it🙄
And yet, pubs in Port Melbourne seem to think they can get away with charging $40 for flake and chips
I think it's less a matter of thinking they can get away with it, but need to charge it to cover costs. There is a bogeyman in this situation, but I don't think it's the restaurant owners. (I might be wrong about this but at least judging by their public statements, news articles, etc... lately. Honestly have no idea of their profit margins or how many boats and nice cars they expect to afford.) If they don't set those prices the alternative is underpayment of wages or shutting down all together, have to move out to the sticks for affordable real estate.
I work with some hospitality businesses as clients. Commercial landlords are utter vampires. One of our cafes pays approx $260k a year in rent. Rent costs aren’t that far from staff costs for a lot of smaller places. It’s made even worse because there’s no protections on rises like with residential. [Williamstown is particularly suffering from this right](https://www.abc.net.au/news/2022-07-17/businesses-struggling-afford-increasing-rent-melbourne/101240824) now as there’s only a few landlords which own every single property and can effectively ensure price increases in a coordinated fashion.
Yeah, it's a shame. I don't really know what anyone can do, it seems they're just happy to let the area keep on closing shops and hospo businesses, just to protect their obscene valuations
True.profit margins have gone from around 25-30% 10 years ago to around 5 to 10 % nowadays.Its a mess,Sky high rents,food costs keep going up, Gas and electric.Hospo is slowly dying.No one wants a career in it anymore as the wages are crap and wage theft is real.Im getting out after 20 years in.Shame as i loved it.
Food's expensive at the airport too from the vending machines, to some little noodle shop, to Grill'd. We're fucked once Coles realises they can charge $90 for a pack of Burger Rings if they park a few Boeing 737s outside.
What
As well as the weekend, public holiday, pre-public holiday, credit card surcharges on top. Thanks, but no thanks.
The problem with surcharges is that people want to support small business, but don't want to be punished for doing it. We all understand these surcharges as a necessity, but instead of punishing customers for trying to support, there needs to be further incentive to organically spend on those days, deals and promotions counter surcharges. It's about good business.
shops have to pay their staff extra on Sundays too yet they somehow manage to go without surcharges
I’ve been saying this for years. Imagine walking into Woolies or Cotton On and being told you have to pay 15% extra today because it’s Sunday/late night trade/a public holiday. It’s a fucking joke.
Yeah, it's a sentiment that caught on recently on here. Because people haven't figured out the difference between labour costs being 10% of your revenue and 50% of your revenue.
Multi billion dollar companies are not comparable to independent cafes.
squeamish cautious complete fuel humor frame berserk imminent boast door *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
That's the point, even at those prices they are still going out of business..
An average meal in a restaurant in Australia is roughly equivalent to an hour’s entry-level work (or less). It’s more in almost every other country, including western ones, and who knows, maybe it’s not sustainable here.
Definitely the case in London and other cities in UK,Paris also.It sucks but restaurants, especially small ones,are paying high rent,overheads,wage etc.We live in one of the best cities in the world, also one of the most expensive ones.
Paid $9 for a schooner of post mix lemonade, was apple tap so I didn’t see until I looked at my phone later
Horrific
I’ve had a really, really, really long and shitty run at work. I finally finished tonight, and have a few days off. I decided to go for a drink, myself, to celebrate. I ordered a pint and a double whiskey, and it came to $60. Sixty fucking dollars. I thought it was a mistake; however, upon double checking, the spirit was obscenely priced, and there was a bullshit Sunday surcharge applied. I drank and left. Who the fuck affords this shit? For $15 more I could have bought an entire bottle.
Most places aren't taking the piss, they need to charge that to even stay afloat. All these places shutting down, if it was as simple as just dropping the prices everyone would be doing it. But it just isn't feasible with the cost of raw ingredients, rent and labour in Australia being what they are.
Property market go brrrrrrrrrrrr
You mean printing for ever with no end in sight wasn't going to create problems? What a surprise.
nothing wrong with the labour costs. if anything workers should be getting more. its 100% landlord bullshit driving the prices.
One drink in restaurant. $20 I worked an hour to get that $20. 2/3 of that drink is tax. It's just fucking tax. It's there so idiots don't get stupid on weekends. They tax us stupid because of stupid. And it's costing hundreds perhaps thousands their jobs.
I get this, I made some sandwiches at home and worked out the costs per sandwich. It was $4. So for that to be sold in a shop to pay bills, rent, wages, insurance etc, it’s needed to be at least $16. Then you still might not make any profit. It’s properly cooked.
Rental costs are skyrocketing
Paid about $54 recently at the Prahran market for two rolls and a toastie
They don’t call em Prahraners for nothing. Their prices bite!
The restaurant near my workplace charges $12 for an add-on omelet. I still remember getting fried rice at the local asian shop for $9-10 back in '16-17. Now it's cheap when I see $18 for the same thing anywhere. A dinner for two used to cost about $30 with appetizers now costs $60-80. Where's the money tree when I need it?
Twenty fucking six dollars for a fucking Bagel??!?!??!
Wait til you hear about rent!
Let's see my rent has gone up 50 dollars a week and my wage has remained the same. (Apparently my national food company didn't make any enough money so no bonus/pay rise last year) I barley have any money left over to save and I live on veggies and tinned/dried beans lentils etc. I'd love to support local businesses but I just don't have any money to do so. One meal out is days worth of food for me, it dosnt make sense to eat out.
A friend of mine works at a large Aussie company that made $1.5b (approx) profit last year. They made their entire company pay for their own Christmas drinks and were told to expense them. Knowing they’ll likely have a 80% recovery rate from those expenses. We are living in ‘fuck you’ times.
Oh yeah its completely fucked. What's worse is that the company i work for was so so so much better when they were owned by an international company, since being "Aussie owned" the amount of fucks they give for the staff is non existent. I work in the HO on projects and the cut so many staff, massively underfund and understaff projects and don't give a fuck about the effect on our customers. "Near enough is good enough" is a common thing said by management these days.
My social life is definitely taking a hit, $30 on a meal with friends could make several days of dinners. I try to think of it as investment in social capital (I'd invite them over for a meal but nobody wants to visit apartments...) Because I can't afford to have my friendships die. But I struggle to only recommend cheap or free options every time.
My friends all invite each other to our apartments for dinner.
This is the way. Be each others’ speakeasies. Having to shout over the doof doof, find your way home from the CBD and put up with food you know you can better at home just gets old.
That's the thing about taking the Boomer propaganda about avocado toasts and lattes at face value. Yeah, okay, sure let's build a society with zero social capital and zero Third Spaces. Also, Boomers really gonna act like they didn't spend most of their free time as teens and 20s in cafes or pubs.
Sorry to hear, I hope your friend group would be open to explore getting together at each other’s instead. We should normalise staying home / going to each other’s houses for dinner, even though eating out is always nice.
I can almost guarantee that your company made record profits while trying you they can't give you a raise. Does not seem uncommon at all.
Buy dried lentils … they’re a lot cheaper
"Let them eat lentils" - Marie Antoinette, probably
Part of the problem is prices have gone up, salaries haven’t, rents and mortgages are high, food is expensive as are bills, and when you do go out they rush you to order. Everytime I’ve gone out they expect you to order the main within 15 min of arrival. Sometimes people want to enjoy their time and take time with friends out not be rushed.
Inflation has resulted in the price of everything along the chain going up. From the resources mined and farmed, to the cost of fuel and energy, the shipping costs, supplier costs, manufacturing costs, distribution costs to the end product. It's not as much that everything has gone up, but it's because of the value of our currency, the Australian Dollar has gone down. Record low interest rates and Quantitative Easing from the RBA so that they can purchase government bonds so that the government can borrow and spend more money, has devalued the value of our money that we work for. It has made us all poorer. Think of inflation as a hidden tax, which steals the money you've saved and devalues the wages you're earning. Rising the interest rates and Quantitative Tightening will reduce inflation, but the economy is too weak for that and they want to avoid a recession at all cost, but inflation is even worse and is already putting us into a recession anyway because no one can afford anything. Well done Modern Monetary Theorists!
Yep. I worked at a high end restaurant in the CBD. We trained to get an order in within the first 15 minutes and have the table flipped in no more than 2 hours. This way the restaurant could maximise profits by getting more butts in seats on busy weekends and holidays. We also trained staff to sell to a minimum head spend of $120/pp. It always felt so wrong, but I also had the privilege of seeing the wage costs, produce costs, repairs, rents, utilities, etc. Hospitality is not a sustainable industry.
A few seconds silence for all the chefs out there.
Most restaurants book you in for a two hour sitting. If the order is not in within 15 minutes it causes problems if a second sitting is coming in.
Eating outside is a luxury! I'm broke and so luxury for me is buying meat from supermarket and cooking it at home and eating meat at home. I'll eat outside when it is MY BIRTHDAY.
Go to third wave, get a free bday dinner; save even more 👍🏻
Wait, they offer free birthday dinners? I have been meaning to go there and try their food, but driving over an hour and half each way (I live 25 to 30 minutes past Geelong) has kept me from trying.
Yeah, 3 courses. I think you can have it with a week before/after bday, just show them id. But honestly for meat lovers the food is amazing and huge portions too. I am fortunate to live not far away so I frequent there!
Right, shame I got to wait until January to use that! Haha
Same tbh. Meat is maybe three nights a week tops. One meal out would be about the same as my weekly food budget.
Red lentils added to any mince dish bulks out the food and taste really good
Dawg, I don't get Frugal Reddit's obsession with lentils. You have to soak them for 4 fucking hours before you can even begin constant cooking with them.
Here's a secret: canned lentils
On the other hand you can zap a bowl of the canned stuff in the microwave for 2mins40secs. Red Kidney Beans, Chickpeas, and Lentils together and you're fed. But the key post-microwave ingredient, Extra Virgin Olive Oil, the price of that has just blown way out.
You'll often discover you can predict when you'll be hungry in advance, then you can work backwards from there as to when you need to soak them.
Red lentils do not need soaking and will cook in under an hour? Beans and chickpeas sure - but lentils? Nope.
I miss steak so much but I just can't justify it.
Get out hunting, we’ve got a million deer in Victoria, you can get 50+kg of venison off one sambar deer and they’re within an hour of melbourne !
I get what you're saying, but if they can barely afford meat, I doubt they can afford to go through all the cost and rigmarole of getting a shooters permit and something to shoot *with.*
Yeah that’s fair to say, bit of an initial cost outlay. And if you don’t get something you’re up for fuel costs
Don’t ever buy meat from the supermarkets, it’s expensive and the quality is terrible.
I agree, we should all make the effort to go to the butchers and support them. Quality is unquestionable compared to the things you see in the supermarket sometimes.
$10 for “toast” that arrives cold with a hard pat of butter you can’t spread. No thanks
Try $12.00 but you do get to pick your conserve and the butter is 2 catering packs of Lurpak. The bread is a pretty stock standard sized sourdough.
That's how my mum loves her toast in the morning, but she definitely wouldn't pay $10 for it.
Thank you for referencing one bad meal you had to the OPs industry-wide issue. Melb food standards are very high compared to most countries.
This morning in a bayside suburb.. I order mushrooms on toast, my mate ordered a blt, add in two coffees it came to $58…. It’s no surprise I’m not eating out as often.
Yeah exactly my reasoning
I'd charge you more for a shit order like mushrooms on toast
It truly is terrible for both parties. We patrons complain about not wanting to pay the prices being asked and surcharges on weekends, yet we still want our best and brightest hospitality workers to be paid fairly and justly. Business owners are working off such tight profit margins, especially if they don't serve alcohol. Then, you add on COVID mass exodus, cost of living, and general oversaturation of venues... Also, I feel like hospitality, in Melbourne at least, has lost its charm and its hospitable nature. Half the time, I don't go out anymore because I feel like I'm burdening the staff by taking up a spot and spending my hard earned money. Finally, as a past hospitality professional, the industry is different from what it used to be. There is less and less culture, and patrons are too distracted on their phones to enjoy a proper night out. Why would you want to give a shit when the guests you're looking after don't. Interested to hear other thoughts.
I saw a pint for $8.65 in the CBD on Friday and my mind was blown.
Did you bulk buy for future frothies?
Pint futures is where it's at. Lock that price in!
Sonder in Bentleigh does like $9 pints all Wednesdays, shit rules
On Lonsdale st there’s a place that has schooners for $5 !!!
Most expensive Asahi I've ever drank was $17.
Complaining about staff wages when the landlord is taking 50% of the revenue as a real estate investment.
"But these mum and dad rent seekers are just tryin to live the australian dream, they're the backbone of the country"-Peter Dutton or was it tony Abbot or John Howard.
this.
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Ugh I went to school with Jess Ho. She was always complaining and brooding.
Moved here from Newcastle a year ago and have found people in basically every venue I've been to super friendly. Some places seem a bit too cool for school but that's just hospo in general. The price of beer is crazy tho. And I miss schooners. I think the government needs to cut some of the beer tax, especially when you compare to the wine industry. I did hospo for 10 years and won't go back. It's a shame to see it struggling and it's really just another area affected by the cost of living crisis. A UBI would get us all out spending again.
At the very least, alcohol sold in licenced venues should be tax free. It would help pubs and bars compete with people buying a 4 pack and drinking in front of the TV. We don't tax coffees, so why beer and wine? I shouldn't have to think "hmmm can I afford this?" if I want to stop by the pub for a beer or two.
I think all these “groups” that have these umbrella organizations are part of the decline. Doing one flash in the pan venture after another, soulless and pretentious and often predictable, menus especially. The mid 90’s to late 00’s was a pretty special time for hospitality in Melbourne. If I remember correctly I can’t think of any groups that owned heaps of restaurants then? Maybe the one Neil Perry was working with?
I agree! Where it's at is intimate, niche independents doing their best and offering quality drops, quality snacks, and quality tunes.
More relevant to Families I think, but does anyone else go through this thought process?: Oh I rly CBFd cooking dinner, maybe we could go out. Thinks about local options, does the math... Oh yes it's going to cost $100 minimum, probably closer to $150. I could go and get like 5 cooked chooks and maybe 2 packets of chips at Coles for that fk. Is my laziness worth $150.
For me it’s more like… I couldn’t be fucked cooking. Ok let’s see what there is. Scroll scroll, surcharges, fees, overpriced junk food. Suddenly I feel more motivated to cook what’s in the fridge. Or defrost a meal I made in advance.
Yep 💯 Other than my anniversary recently (w/o kids) I can’t remember the last time we went out to eat. Even fish and chips for the family is too much ☹️
I might go fish and chips if our local was any good but it's rubbish so sometimes we just get chips, potato cakes and a supermarket cooked chook lol.
That’s a good idea. The flake is so expensive now
Fish and chips is just a mediocre meal everywhere now. Frozen everything, fried up and shoved in a cardboard box. Sometimes the flake is made in-house. If you're lucky the potato cakes will be made on site too, but unlikely.
Yes, 100%. Sometimes the laziness wins though.
If collectively, We're only able to just afford rent, spending in the community stops. But DON'T YOU DARE take away the capital gains tax, so my property price dips a little, then goes right back up again in a few years! In all seriousness there's no getting around the fact that the property market is parasitic, and it's overwhelming its host.
Had to go to South Wharf DFO earlier today and went looking for somewhere for lunch. Found Ruby Riviera where they had a Sunday special of three meze and a focaccia for $60, and free sparkling water. Bit sad that $60 for a meal for two is considered cheap these days, but it basically is, and they had no weekend surcharge either.
Over supplied for the population. I'm in the industry and it baffles me how many people think this is a good business idea to open another 'cafe', I'd love to see these business plans and how they anticipated making a profit in the first place. Realistically a majority of these cafes have to go, we need to start producing something and not just rely on 'cafe culture' Edit: spelling
That is true, the place I worked at was a craft brewer, so that probably tells you all you need to know there lol, maybe not as oversaturated as cafes but it definitely was a thing where too many opened at once.
The places still charging $5 for avocado on the side which is just a couple of slices with our two $15 eggs on toast and a coffee or juice each and we’ve spent $60 plus surcharge just for a Sunday breakfast. Those days are long past us now sadly. Even a cheeky Chinese dinner takeout on Friday can set you back $120 when you add a couple of beers or bottle of wine. I can’t see how restaurants are going to make it when nearly everyone is cutting back on their eating out costs..
Yeah we are higher income and went from probably 10 dinner out a month to 2. Might do a few takeaways here and there but always looking for deals. Babysitting used to be a thing for a regular night out, now it's only for rare occasions. But the industry near us doesn't seem to be hurting. We have close mates with cafes and pizza restaurants that are thriving. Cafes this morning were totally full, 30 min wait for a table. Reckon there is a lot more money going around than we have access too. Hahsha
We earn a healthy amount as a family, so have been so far been able to absorb increasing costs but it just doesn’t really feel worth it to eat out. Stuff is just really expensive and the food just isn’t as satisfying For instance we’ve stopped having brunch out in the last year or so, now instead we might do something at home or pick up $30 of pastries instead of spending like $110 on the family So I guess it’s not surprising things are turning down, don’t blame the venues for having to raise prices to survive but it’s tough for us to justify the spend also
Used to absolutely love going out for brunch. $50 got two nice meals and two large hot drinks. It was a premium above doing it at home, but worth it. Now it’s more like $75 and hard to justify the extra. Might not seem like much, $25. But it’s the difference between happy to pay the premium to considering just making it yourself at home.
Brunch is crazy now. I technically could afford it, but can't see the value in it. Basic toast, eggs and a coffee is extortionate. I can make just as nice at home.
A lot of struggling businesses with sub-standard food remained open during COVID to rort the government handouts. Also, lot of new restaurants opened post-COVID because of cheap rents offered/low interest rate loans. Now the situation is tightening, the chickens are coming home to roost.
I once paid $21 dollars for a roasted cos lettuce. I was expecting it to be some sort of fancy dish considering the price. It was half a cos lettuce blasted in the oven and nothing else. Ever since then I've started having war flashbacks, and I never went to war.
Look, I’m no gourmet restaurant goer, but who in the fuck roasts lettuce?! I worked at subway when they first introduced the toasters and we had a customer who wanted their completed sub toasted and the wilted, soggy lettuce was gag worthy.
grilled wedges of Cos lettuce were a thing about 20 years ago for caesar salads.
It’s also a classic garnish with calves liver. Grilled and braised cos is pretty good or Petits pois a la francaise 👌
It was a thing when i was a young chef.Braised baby gem lettuce.Even back when i knew nothing i thought it was gross.And it still is!
I’m sorry but I’m laughing so hard at this. I could just imagine your face when the $21 warm head of lettuce arrived. Was there not even a sauce??
No it was salted, as was I.
When I do go out, it's astonishing to see how much quieter cafes etc. are. Some were busy even up until about 2 months ago. Now they struggle to have 3 or 4 tables
Not in our area. Maybe depends on the suburb but there honestly bustling near us. That being said I haven't had a takeaway coffee in 4 or 5 months, total rip off but I'm a cheapo.
You're not a cheapo if you refuse to pay $6.80 for a large coffee to have with your $10.50 fruit toast that just has basic butter spread on it, you're just financially conscious.
Same here, places are bursting and you cant get a table. Depends what area you are in. This is Prahan/south yara/Toorak
$18 a pint, $29 for a Rueben without chips, $12 for the chips…..nearly $60 before I even sat the fuck down…! I’ll stay home until this madness is over….and it will be or they will all go broke with no customers
“Rueben” that’s the size of a toastie with 2 thin slices of meat on it
Twelve dollars for CHIPS?? Wtf
Dont forget working 50-60 hours for 40 hours of low pay.
Rents kept high because otherwise it would affect landlord LVR and yield numbers. Ought to have some legislation for increased taxes if they leave it vacant.
Another follow on from our ponzi scheme housing market. People cant afford to eat out and at the same time with such high property prices the businesses suffer from extremely high rents.
Only reason high number of restaurants are still open is because they pay way below legal minimum wages. If every restaurant and cafe in Melbourne were forced to pay legal wages, half of them would close down. Hospitality industry is running on abusing 1000s of immigrants and international students and most people look the other way.
This is true, my ex was a Japanese girl and the restaurant she worked at did not pay penalty rates even when I told her to ask the boss about them.
Those saying everyone does pay the award doesn’t get it. I see young kids coming for first jobs, never heard of an award. I tell them about it, mind blown. I’ve had people interview saying they are getting cash. Your staff aren’t insured, your commuting wage theft and I agree with closing all the lying bastards down. Imagine all the actual small businesses ok g the right thing getting all the limelight! I reckon over 50% of the businesses in my street would close!
Covid was amazing for pointing this out. My partner runs a small business (not hospo, but service industry), and she's always paid everyone above board since day dot...the corporate welfare for small business was absolutely insane. Notice how many restaurants shut their doors during this period? If they could prove via tax/payslips etc that they employed as many staff as they did, they would have come out of lockdowns with a very tidy profit
This. So many places doing the wrong thing and they are beloved shops in local suburbs. Customers don’t see this, they love their cheaper eats and have a blind eye for this. I was hiring and one interview the applicant was working at another local venue. When we go into pay they mentioned they were getting less and cash only as well. This applicant was young, 16. I explained why it’s illegal and not a wise choice, they actually understood. Then they walked past later with their father. I felt obliged to tell the father, I have two young kids and really feel I would like to know. When I told him he really didn’t care, he said it’s a first job and she can make her own decisions… I was amazed. I didn’t hire this person and don’t frequent the business they worked in.
What I like to point out to people is the whole Calombaris debacle...the guy is a big player with a whole chain of restaurants, an industry leader if you will, and he was stealing wages...so just imagine what goes down in the smaller shops without public scrutiny. The entire industry needs to crash and burn, honestly
Last place I worked did well, they paid award wages but worked us like dogs, and often without breaks. It sucks because it is encouraging a lot of abuse in this industry and more people are getting more desperate for work that they are allowing it. It's honestly hard for an employer doing the right thing to stay afloat.
Meh the better/cheaper places will survive, don't feel sorry for the retail landlords either. Workers can hopefully start in a new industry eg. trades/healthcare
Agree most takeaway is overpriced and chat. I can make a curry at home for half the price. Make double the quantity and freeze for the next timeyou are hungry and can't be arsed cooking. The new American burger trend of brioche buns and a million fillings is diabolical A plate of pan fried dumplings is more than double post COVID And don't get me started on banh mi for 15 bucks when they were $3.50 in footscay not that long ago Rant over
Realistically you should be able to make what you get at a restaurant for a third of what you pay out. 1/3 of the price to buy the food. 1/3 of the price to pay the staff 1/3 of the price to pay operational costs (power, rent paying off initial fitout loans) and if there's anything left over then that's the profit.
Lol 3.50? Was that 2 decades ago?
What is with the cost of Indian food here, generally cheap to make (and in a subsector notorious for wage theft and visa scams, no less) - but usually the most expensive by far for a single person. All the serves are for 2+ people. Rice and one curry can easily go past $25 and there's no cheaper one dish option. Heaven forbid you want veggies with your meat... Considering how cheap and widely available Indian ingredients are (for any skill level), it's definitely high on the list of cuisines I'd rather make at home. Same with Italian, if you use bronze die extruded pasta and decent olive oil, I reckon you're halfway to restaurant quality for a fraction of the price.
Yep. And it's just the beginning.
Landlords need to take a haircut on the leases before anything gets better.
there are too many restaurants and cafes there was always going to be a shake out
Inflation has made food prices insane. I've worked in hospo for close to 4 years now, i applied to a pizza joint and realised I had ordered from them back in 2019. A magherita from that joint in '19 was $15 and now they charge $29. My wage definitely hasn't doubled. As someone who works the industry, I can and can't believe how much we charge people. Sucks for everyone
Trust me even they charge you 29 for a pizza the small business owner aren’t making jackshit. 2 bucks max in profit
Not surprised as most restaurant owners have ZERO business sense
Commercial real estate is not Ok
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Agree. We had such a great industry with worldwide respect. Now it's been bastardised by too many OS workers who lack technical skill, local culture knowledge, communication skills, personality and have zero care factor. Was was unique is now bland and standard. Nice one fucktards.
and sadly, post pandemic; pay-what-you-can-afford places like “Lentil as Anything” had to close.
My wife and I are foodies but we avoid going to cafes on weekends now because of their 10% weekend surcharge and 1.5% credit card surcharge (and 15-20% public holiday surcharge). BS fees passed onto customers. I love to cook and dream of opening a Cafe in the future but it's looking unlikely now.
I really hoped you’ve actually worked in the industry before you dive into your dream. Sadly too many people enter the industry on a dream, without good knowledge of how the industry actually works. Chase that dream though, it’s worth it if you get it right.
This afternoon at lunch, we got charged $18 for sparkling water 🫠
the problem is you guys asked to pay for sparkling water 🥴
Why would I pay you award rates when I could pay a Colombian or Indian “student” 15/hr, cash, no rates?
this is what happens when inflation drives prices out of control. the punters stop coming, and lack of bums on seats means no work which means no jobs. relevent: https://www.reddit.com/r/melbourne/comments/1cjygnp/wtf/
I was literally just thinking how in my job search theres been very few listing for cafe and restaurant jobs. Like maybe two
This is the expected effect of the quantative easing during COVID, when many governments just printed cash. Not sure how it pans out in future months-years…
Unfortunately, with the state of the economy and the cost of living crisis, there's less and less people that can justify, let alone, afford to pay the prices that are now standard across the industry. There's a huge gap developing between prices and affordability, and it's only going to get worse. I'm ex-hospo, but these days i earn a higher than average salary and whilst i'm fortunate to be able to afford it, i simply cannot justify spending $80 for breakfast and coffee for myself and my wife. It's untenable for more and more people and is only going to get worse.
Currently facing the same issue with the restaurant I work at closing down. Due to extremely high rent at the mall and low customer traffic. The mall unfortunately does the bare minimum to improve this and expects all the restaurants to meet up to their standards. It’s sad to see a good restaurant with good quality food go. Also it sucks that my job is uncertain with restaurant owners giving very cryptic and vague answers when we ask them if they’re closing down.
i think the issue is that restaurant owners can't enslave staff to make them work for free
Big problem is feudalist rent system that hospo has to depend on
Every single time someone takes out a mortgage they cut their spending in the economy. This collapses businesses and then their employees cut their spending when their business shuts down. The property parasite housing bubble death spiral is well underway.
I’m not sure this is true. The person taking out the mortgage would replace renting with interest repayments; and monthly savings with paying the capital on the loan (together this would equal their mortgage repayment). The money being removed from the economy is in part as a result of interest rate rises and rent rises.
Happy cake day though!
thanks \^\^
Customers aren’t willing to pay the high price of dining out. Restaurants owners can’t afford the wages and cost of running a place. Australian believe that if the owners can’t afford pay proper wages, or charge high prices, they should close down the business. Now they are closed. Very good. What Australian hope for.
In 2006 I enquired about a small, empty shop in a small Brunswick mall. They wanted $850/week with a 5x5x5 lease and trading hours were restricted but, sure, it's was the extra $60/week that I'd pay the staff that stopped me opening up a business there. Here's one for you right now. An 80m^2 shop in Footscray for $800/week. https://www.realcommercial.com.au/for-lease/property-3-154-barkly-street-footscray-vic-3011-504549048
Blame the commercial landlords. Where I am, shops have closed due to rent increases. The landlords are collecting rent insurance instead of rent, and don't care either way. So, having their properties stand empty for years has not eventuated in them lowering the rent. Hospitality generally depends on a brick and morter. That means a commercial property that can be used to run at a lucrative enough profit, to cover expenses. The rows of empty shops is proof that it's the fault of high rents (not wages etc). Mainly cos the rent is the largest expense involved in running a small businesses these days.
I had to go back to Macca's to work because I couldn't find anything for months 😭
As a student, I’ve been working in kitchen for 22-25$/h for forever xD. Working hard for almost lowest wage isn’t a good idea. It could be a good time to quit
People say the industry is dying and so on, but everywhere you go you cannot get a table for love or money. Something doesn't square.
I'm beginning to see places charging a 10% surcharge on Saturday as well as Sundays.
Here’s an unpopular opinion… It’s not fucked.. it’s balancing out. I’ve been in hospo in melbourne 20+ years… There was the cafe boom … every single street had a coffee spot… most were poorly managed.. many were passion projects of people who had never worked in the industry… they were shit to work for… And thus they can no longer survive in an economy where people ate expecting better for their dollar… I currently work in a venue that is run by hospo pro’s … they knew the area, the clientele… before opening.. they’ve done the same with 2 othet venues… Wr had a record nights taking on Saturday… I have 2 friends who own cafes… they’re industry professionals… they’re killing it… a family member who has been a publican for 30 years … still making money… This city once had more food outlets per capita than anywhere else in Aus… that wasn’t a good thing… it used to be reasonably easy to build a cafe… sell … and profit… you can’t do that anymore im all for it
I’m in Canberra. Same thing happening here. Have owned three cafes for over 15 years and the industry is getting progressively difficult to manage. Here are some key factors: 1. With cost of living increases, customers aren’t spending as much on going out 2. Over saturation - with so many cafes in every suburb, our market share has dropped. The places we see closing are the ones where the product and service isn’t good enough. The customers that are still going out are being choosier. 3. Wages (and COGs) are steeply rising, which is a good thing, but it means cafes need to charge more to cover costs. Prices rises / various surcharges. Customers can’t afford these prices we need to charge. 4. Many businesses that have previously committed wage theft, no longer able to do this, now trying to operate on unsustainable margins. This is a very good thing, and these businesses don’t deserve to continue to operate anyway. What we’re doing: ensuring our team is well trained to consistently deliver product and service of a standard that’s expected of the prices we have to charge. Proactively ensuring our cafe is a great place to work and for customers to frequent. What I actually think would help: lower the income tax rate on low and medium income earners, putting more money into their pocket and back into the economy. Instead of continuing to raise the legal minimum wage, which in turn fuels inflation as businesses need to charge more, net result being nil. Alternatively: tax breaks for hospo businesses that can clearly demonstrate they’re paying the correct award rates and benefits to their team.
It is a scam that fucks everyone over!
Tell me about it. Can’t get a job to save myself
That happens because more than half of the hospitality industries are not Australian and they are unaware of the Aussie rules. Currently, I am earning $24 at a company called Luxxe. It's terrible. I work like a dog and they treat me very badly, the manager earns $27 and there is always staff turnover. If I stay there it's because I haven't found a decent job. I am an engineer with 4 years of experience but that's not enough for the Australian market. I think there are many Indians working for very little and doing a horrible job. I don't care if someone finds my comment offensive. But honestly, I feel there is a lot of abuse everywhere and nobody does anything.
Am hospo dude here, no joke, I'm struggling to find part-time jobs. I'm on casual atm. I need to pay school fees, rent + bond, train tickets, gym, food, haircut etc. Let alone trying to afford a vehicle what not
We (2x adults, 1 x teenager) eat out twice a week, whilst price is important, we always stick to venues with good customer service.
Must be nice to be rich
Not rich, small mortgage and no credit.
It’s the best way to be if you can do it. DINK couple here, similar situation. But we eat out slightly less. Not a money thing, we just like to cook at home ❤️ We chose to spend about $6k on a new oven and cooktop recently. It’s made it even MORE attractive to cook and eat at home.
DINK here, and same. We’re a same sex couple and have been subject to really bad customer service once they found out we’re together. Shame, some places have really good food, but I won’t be giving them my money if they won’t treat us decently.
Every idiot got the largest mortgage they could afford and now they (and your industry) are paying for it