Hospitality Today: Why Australia’s Eateries are Booming & Busting Simultaneously
This 2019 episode strikes very relevant today; Phil Di Bella delves deep into a rather intriguing question: Why do we see numerous cafes and restaurants shutting their doors, even as new ones keep springing up? As we get ready for the festive season, Phil provides a comprehensive analysis of the factors at play in the hospitality sector and how it affect us, the consumers.
Main Points Addressed:
🔸 Supply and Demand: The current oversupply stems from outdated planning laws and developers pushing for more retail space, often leading to an abundance of food and beverage outlets.
🔸 Dilution Effect: More cafes with no unique selling proposition means dilution. Even if a cafe isn't popular, it still takes away business from others, leading to closures.
🔸 Consumer Behaviour: With rising expenses, consumers expecting more for less is unsustainable. Understand the actual cost behind that cup of coffee or plate of bacon and eggs.
🔸 Controllable vs. Uncontrollable Costs: Increasing costs, especially those beyond the control of cafe owners (like wages), are affecting profitability.
🔸 Understanding Developers: Many new establishments are opening because developers offer huge incentives to have operational businesses in their spaces.
Key Takeaways:
- The oversupply problem arises from outdated planning laws and developer incentives.
- Many cafes lack a unique selling proposition, leading to business dilution.
- Consumer expectations need to be managed; prices reflect rising uncontrollable costs.
- Hospitality is pivotal for Australia, providing skills to youngsters and acting as a country's backbone.
- Compassion and understanding of the industry's challenges are essential when enjoying hospitality.
Phil passionately shares that hospitality has been a significant part of his life. This industry is not just about food and drink; it’s about experiences, skills, and the backbone of many communities. But with the current challenges, its sustainability is at risk.
When you're next sipping your coffee or savouring a meal out, take a moment to appreciate the intricacies of the industry that serves you. Understand the value, be patient, and support your local cafes and restaurants.
📢 Your Action: Next time you're in your favourite cafe or restaurant, appreciate the value they bring. Understand the costs behind their services. Share this knowledge with friends and family to ensure a sustainable future for hospitality.
💬 Share, Subscribe & Rate: If you enjoyed this episode and gained valuable insights, please share it with your friends. Don't forget to subscribe, rate, and send us your questions at our Facebook page Facebook.com/FlashCastByPDB or at ask@flashcastbypdb.com. Enjoy this episode and, as always, thank you for tuning in!
Produced by The Podcast Boss.
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#HospitalityAustralia #CafeTrends #PhilDiBella #FlashCastByPDB #ConsumerInsights #HospitalityInsights
Creators and Guests
Host
Phillip Di Bella
Entrepreneurship is a way of life and intelligence for me, not a title. Every project that I embark upon, my goal is to do it different or better than anyone else. It was this passion and entrepreneurial spirit that led me to start up my first business venture, a small coffee-roasting operation in the suburbs of Brisbane in 2002. I identified a gap in the coffee market. There was no local coffee company that successfully matched the quality of their products with excellent customer service and a strong brand, all at a reasonable price. This business grew from a start up to the largest of its kind in Australia before I sold it 12 years later. I strive to make my group of companies matter to customers. I want to ensure that I am relevant in the future am continually looking at innovative ways to do so. I am not limited by my available resources; I am continually looking to fill the void in the market to meet customer’s needs and solve problems. My mantra is ‘tomorrow better than today’. My goal is to continue building and improving and use our achievements to fuel our momentum and keep moving forward to bigger and better things. I never rest on the laurels of my success but continue to pursue new ventures through which to challenge myself, and seek opportunities to develop or share my skills. I continue to strive as a leader in my industry and as an entrepreneur, and am always challenging myself personally and professionally whilst ensuring to give back to community.
