FINE FOOD FARED WELL.

Hi All,

We visited the Fine Food Fare held at the Melbourne Exhibition Centre this week and bumped into a few of our customers from all over the country. We didn't have a stall (might have one in Sydney next year) but I think our tee shirts gave us away and gave our customers the opportunity to stop and say hello.

In this age of e-stores and email, it's great to actually meet our customers face to face. Had some great and spirited conversations about where Hospitality and food in general is going these days. There was a definite division between the states as far as optimism goes, with business owners from the mining boom states Vic and Queensland saying their businesses are going great guns or at the very least growing steadily. No surprises there. Victorian and NSW folk were a very mixed bag. Those in the growing outer suburban corridors doing very well while businesses in more established areas are finding it harder to make ends meet.

Here are a few interesting facts taken from the Australian Bureau of Statistics relating to the health of the Hospitality Industry.

'Retail trade data released by the ABS showed that turnover for restaurants and cafes was up 12% on last year albeit closure rates for the industry at an all-time high.

Turnover for the industry in June 2012 was up, 12% on June 2011 at $1.573 billion. Nationwide FY11/12 restaurant, cafe and catering turnover was 6% up on the FY10/11 at $19.1 Billion brought about by small movements in most States but a 9% decline in Victoria, a 15% lift in NSW and a 30% lift in WA.

Restaurant & Catering CEO John Hart commented that, “This result shows that the industry is still performing well from a revenue perspective but is suffering terribly under the weight of huge increases in the cost of wages.”

Great Aussie Pie Winner Fine Food 2012
Bart Honig - Mooroopna Bakery Vic.

Although these results show some growth a tough climate for restaurant and catering businesses still exists. Wage costs are estimated to be 45% of revenue which makes the average restaurant, cafe or catering businesses profit margins low. The industry is also seeing issues such as shortages of skilled workers, decreases in average spend and uncertainty of the effects of the pending Carbon Tax detracting from their bottom line.'

Although there are no surprises in this information, it is a good reminder that complacency has no place in business today. Customers expectations continue to increase as far as food and service go. Palates are becoming more sophisticated. Safeway now sells Macarons!!!!!! Who would have imagined that 2 years ago.??? (Even more surprising - the Macarons are made in France for a local importer. It's unbelievable that a local manufacturer isn't the supplier) However, I digress. The bottom line continues to be - lift your cafe or bakery every way possible. Including of course, the presentation of your staff. Loose those 'once were white' tees and polos and move into 2012 with KC clothing. The Baking industry is very well represented at the Fare with the Bake Skills Competition and the Great Aussie Pie Comp. This year won by Bart Honig from the Mooroopna Bakery in Victoria. Well done Bart!

 If you didn't attend the Fine Food Fare this year, put it in your diary for next year. It's a must for anyone in the Food or Hospitality industry.

Cheers for now.

The Team at Kitchen Couture.