A new report on the Australian hospitality industry warns against pubs becoming too food focused to the detriment of higher revenue streams like gaming.
Hospitality Insights 2017 has been released by Ferrier Hodgson, a firm specialising in Corporate Recovery, Corporate Advisory, Forensic Accounting and Forensic IT, and explores the key developments affecting the hospitality industry over the last 12 months and the outlook for the year ahead.
The report covers a range of topics relevant to the industry, offering a regulatory overview and gaming roundup, as well as looking at technology that the industry should be adopting.
It highlights a gap between demand and supply that is driving a more active market in regional areas and identifies opportunities for growth and optimal pub operations, including social media, hotel booking websites where accommodation is offered, and the use of third-party apps such as UberEats.
One of the major issues the report highlights is the major trend in the last couple of years for higher-quality food offerings with many venues positioning themselves as specialist food pubs, but they are are doing so at the detriment of other higher-margin revenue streams like gaming.
Morgan Kelly, partner and national hospitality practice leader at Ferrier Hodgson says “Food is lower margin than beverage and gaming and has high labour costs. Getting the revenue mix wrong for a particular venue could lower margins overall.”
“An attractive food offering is a way to attract patrons and should enhance revenue, not replace other higher margin revenue. Selecting the right food service for a specific venue is critical due to its high cost and lower margin, and choice is already abundant.
Sources: Vanessa Cavasinni, Editor- Australian Hotelier, Ferrier Hodgson