The Restaurant Industry

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The Restaurant Industry

• Today Tomorrow
• John Hart
• CEO, Restaurant Catering Australia

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TODAY

• An Industry SNAPSHOT
• Businesses
• Revenues
• Customers
• Costs
• Labour
• Food
• Other Costs
• Summary

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Data

• RCA Industry Benchmarking Report
• ABS Cafes and Restaurants Series
• ABS Business Register
• ABS Retail Trade Data
• CCH Industry Benchmarking
• Roy Morgan Single Source Data
• EconTech for Coalition for Workplace Reform

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Businesses

• 40,000 Restaurants, Cafes and Catering Businesses

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Businesses
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PRICES
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PRICE MOVEMENT BY STATE
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TURNOVER
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Average Turnover

• The average restaurant turns over 347,000 in
  2006/09
• The average in 2000 was 268,000

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Revenue Factors
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US Revenues
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Future Revenue

• Restaurant revenues will continue to rise and
  restaurant meals are aspirational, high quality
  products as real wages grow so will restaurant
  revenues

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Australian v US Market
Today 47.9
1955 24.7
Today One Quarter Food Service
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Future Customers that will drive Growth
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(No Transcript)
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The Markets
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Food Growth

• Price Sensititve
• Meal Replacement
• Breakfast
• Quality Time / Quality Dine Relaxed Winers /
  Diners

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Beverage Growth
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Beverage Growth
Wine by the Glass up from 25 to 33
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Wine by the Glass
And imported beer!
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Food Wine

• Variety
• Enough but all taste
• Fast
• Company and Ambience

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Merging Leisure Entertainment
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Government Projections

• Wages Growth
• 3 ¾ Percent this Year
• 4 Next Year
• Most important factor to growth is wages growth

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The Gift That Keeps GivingAverage percent of
annual restaurant sales from gift cardsand gift
certificates
Family-dining restaurants 4.6 Casual-dining
restaurants 4.8 Fine-dining restaurants 5.8
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COSTS
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Food Prices
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HOT ITEMS

• Bite-size desserts
• Locally grown produce
• Organic produce
• Flatbread
• Bottled water

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FOOD Cost to Business Stable

• Better Menu Engineering
• More of what they want more cost effectively
• More add ons
• Different Portion Configuration

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Labour Costs
Wages as a proportion of Turnover 1999 - 2007
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Wage Increases
All Industry
The Restaurant Industry
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Wages

• Increases to all wages (to protect revenues)
• Increase Productivity
• (Technology)
• Keep participation Up
• Encourage Immigration Increase Supply
• Tax Reform to Lift Take Home Pay

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Employment
Employment by Industry, 2001 (deviations from
baseline, 000 jobs)
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Integrating More TechnologyOperators who report
using more technology than two years ago
In the front of the house In the back of the
house Family dining 30 Family dining 23 Casual
dining 35 Casual dining 30 Fine dining 39 Fine
dining 37
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Likelihood of Using a Customer Activated
Ordering/ Payment Terminal at a Tableservice
Restaurant
Percent of Adults
All 46 1824 year olds 71 2534 year
olds 64 3544 year olds 53 4554 year
olds 39 5564 year olds 34 65 17
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Overheads
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Going GreenPercentage of fullservice
restaurants, by type of operation,that purchase
products made from recycled materials
Family-dining restaurants 78 Casual-dining
restaurants 79 Fine-dining restaurants 73
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HOW CAN WE HELP
Operations Report
serving up flexibility
creating flexible workplaces in the restaurant
and catering industry