Sydney's Hospitality Challenges in Numbers

In Eating Out in Australia’s published report, it was found that the number one trend facing hospitality operators is staffing. Read on to discover why the industry is facing this challenge amongst others, how to constructively deal with them, and what the future of Sydney and Australia’s industry looks like.

The challenges

Within the biggest challenge of staffing, the top three concerns hospitality operators face include:

 

  1. Poor work ethic
  2. Low knowledge/skill levels
  3. Recruitment

 

We’ve addressed the skills shortage before: Industry experts forecast that by the year 2020, the hospitality and tourism sector will experience a shortfall of over 123,000 skilled personnel to take up positions in our restaurants, hotels, events, bars, and cafes. For most hospitality operators, these challenges are already proving difficult. Even the most effective managers don’t have the time or can risk the quality of service by training lowly-skilled candidates on the job.

Screen Shot 2018-10-12 at 11.47.37 am

The solutions

As a best practice employer, we exist to tackle these challenges. Through recruitment, our front-of-house staffing services guarantee:

  • RSA certification
  • Work rights verified
  • Pre-screened and skills tested for all service types
  • General availability based on your service periods
  • 99% attendance rate
  • Risk-free employment

 

So the bad news is that there are, indeed, growing challenges that the hospitality industry will be facing. But there are two parts to the good news: First, we are equipped to face these challenges through recruitment and hospitality support. Second, the hospitality industry is flourishing despite these challenges.

The conclusion

As Eating Out in Australia’s report states, there are just over 24 million Australians, and they eat out an average of two to three times a week. That’s more than 50 million meals out each week or 2.5 billion in a year. Each Australian household spends an average of $94 a week eating out. That’s a total of $45 billion a year.

 

"The total revenue of the eating out industry in Australia, as defined above, for the 12 months ending 30 June 2016, was $45.3 billion. As with venue numbers, the highest proportion of revenues (42.4%) is fast food outlets, with a total revenue nationally of $6.6 billion."

 Screen Shot 2018-10-12 at 11.52.45 am

Australia, and specifically Sydney, show no signs of slowing down when it comes to Australians supporting the hospitality industry and dining out.

The figures

Specifically, there were upwards of 85,284 eating out establishments in Australia in 2017. Here they are broken down, and they only continue to grow:

  • 21,953 restaurants
  • 20,502 cafes
  • 6,983 pubs and bars
  • 6,413 clubs

Ultimately, Australians are eating out now more than ever which is positive news for hospitality business owners all around.

 

Discover the full report here.

 

 

Is your hospitality business experiencing any of these common issues? Take a complimentary health check of how your operation is running and combat those industry challenges head-on below.

 

 Human Resources Test

About the author Carlyn Shaw

Drawing on 12 years of hospitality experience and coming from a Communications background, I am passionate about all things hospitality.

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