“For me, hospitality has always been an industry for the people,” says Hugh Van Haandel, general manager of Hot-Listed fine-dining stalwart Stokehouse in St Kilda. “But with interest rates being high, rents being high, cost of fit-outs and building being astronomically high and [price of] products being forced up by government regulation – like the excise tax on alcohol – it can just make it inaccessible for some people.”
Unfortunately, it’s as true for prospective operators as it is for prospective patrons. The ongoing cost-of-living crisis means discretionary spending is down, which in turn means hospitality businesses, still grappling with staff shortages, continue to feel the pinch.
“From what I’m hearing, a lot are down 20, 25 per cent in revenue most months,”
says Van Haandel.
It was this state of play in the hospitality industry that galvanised some of Australia’s most influential restaurateurs – including Neil Perry, Chris Lucas (Lucas Restaurants), Andrew McConnell (Trader House) and Alla Wolf-Tasker (Lake House, Daylesford) – to come together to form the Australian Restaurant & Cafe Association (ARCA) last year.
Led by CEO Wes Lambert, ARCA acts as a representative for a $64 billion industry that employs around 500,000 workers across some 56,000 restaurants and cafes.
“[Hospitality is] one of the largest industries supporting jobs in Australia, yet there was no real united front to represent [it],” says Van Haandel, an ARCA board member. With these key players aligned, he says, “[ARCA] is about not just being in the greater conversation, but being able to influence it, which is the most exciting thing.”
A major part of the association’s mission is to lobby the government on the industry’s behalf to incite meaningful change from the highest levels. “One of the biggest wins recently is the excise tax on [draught beer]; it’s been put on freeze for two years.
“Unless we’ve got the opportunity to speak to government before these things are passed, decisions are being made without our input.”
ARCA is also lobbying to scrap income tax on tips. and the fringe benefits tax on hospitality, making business-related meals and entertainment tax-deductible, which is a win for restaurants. “It enables corporates to come in and spend,” Van Haandel says.
For members, ARCA offers opportunities to learn from and connect with other industry professionals. Monthly webinars might cover HR best practice or updates to award structures; networking events could put you in touch with a new uniform supplier or reservations platform, plus there are other members-only resources and offers.
But most of all, Van Haandel says, “It’s about having a seat at the table.” Members can be heard by a group of their contemporaries, then have their concerns addressed.
“There are businesses that are struggling and there are a lot of key issues that are relevant across our industry,” he continues. “So, I think being a part of [ARCA] gives the whole network a stronger voice. It gives our whole industry a stronger voice.”
Overall, ARCA is looking ahead with positivity, working towards a more sustainable future for Australia’s restaurants and cafes. “Whilst Covid has had a dramatic impact, we’ve tried to move on from it,” says Van Haandel.
“I think that’s what you want for the industry – for the good times to roll and a few of the restrictions on hospo businesses and employees to be loosened a little so the industry can keep serving and doing what it does best. We’ve got confidence in it.”
This article is produced by Broadsheet in partnership with the Australian Restaurant & Cafe Association. Become an ARCA member or buy tickets to the inaugural gala on September 8 online.
