Turnover in the café, restaurant and catering sector has increased by 2.2 percent according to retail trade data released by the Australian Bureau of Statistics (ABS).
Figures for the year ending March 2017 have shown that turnover in the sector surpassed $25 billion. When including turnover generated from takeaway sales, the figure exceeds $43 billion.
Restaurant & Catering Australia (R&CA) CEO John Hart said “The increasing turnover generated by café, restaurant and catering businesses compared to last year shows that the sector is still a driving force behind the nation’s jobs and growth.”
Even though industry turnover is up, this did not translate to an improvement in overall profit for businesses, he said.
“Even though turnover is increasing for cafés, restaurants and caterers, what this doesn’t take into account is the growing number of individual businesses who are each competing for a smaller share of the profits.
“With profit margins as slim as they are, businesses are coming under increasing pressure with the persistently high costs of wages, rent, produce and electricity all contributing to the tough operating environment they currently face,” Hart said.
Image: Hamilton Soda