18 Aug Hospitality is not broken
There’s an episode in Season 2 of The Bear, where a disheartened Sydney faces an online barrage of restaurant closures in Chicago. Across Australia it feels like we are going through that now, with each new week seeing beloved restaurants across Australia closing their doors.
While I am as disappointed as anyone to lose great venues, there is also a flipside. Many new restaurants and cafes are still opening each week, so many that we can’t even keep track. Statistically, we know some of these will fail, but some will go on to have a long and happy life serving multitudes of diners. The vast majority will close one day.
Hospitality has always been an industry with high business turnover. Right now the ongoing structural challenges are coupled with rising costs and a customer base unable to pay higher prices. This is part of the reason why the industry is suffering and the focus of doom-laden media coverage.
But it doesn’t mean hospitality is broken. It doesn’t mean it’s time to give up. It means it’s time to get creative. There are more tools available to business owners and managers than ever before, tools that help to understand customers, plan rosters, price menus and manage cashflow.
If you are feeling disheartened, get out there and visit some of the places that are doing well. What are they getting right? Reach out to your network, go to trade shows and industry events, talk to service providers and suppliers who can help.
It’s devastating when a business fails. But there are also many thriving hospitality businesses out there, and plenty of opportunities. There are sectors of our community who are resilient to cost of living pressures and keen to dine out.
Australia is known the world over for its friendly service, incredible fresh produce, talented chefs, stunning wines, and serious coffee scene. Let’s inject some positivity, work within the parameters of today, train the chefs and hosts of tomorrow, and look forward to better and booming times ahead.