QHA-Review_April

NEWS
STATE OF THE MARKET
THEY SAY IT TAKES 21 DAYS TO FORM NEW HABITS. THE IMPACT OF COVID IS FAST APPROACHING ITS TWO-YEAR
ANNIVERSARY AND NEW HABITS HAVE COLLECTIVELY TURNED INTO NEW INDUSTRY TRENDS. IN THIS ARTICLE STEVE
GAGEL OF PROSPERITY ADVISERS GROUP SEEKS TO EXPLORE THE CHANGES THAT HAVE BEEN THRUST UPON US AT AN
INCREASING RATE OF CHANGE AND THINGS THAT HAVE CHANGED FOREVER IN OUR INDUSTRY.
QHA REVIEW | 14
Areas of Impact that I have witnessed generally are in
one of three areas. Staffing is the biggest issue in all
hospitality venues, followed by technology take up and
the resulting work from home arrangements currently
becoming common in society. Below we look at the
impacts of these three areas in more detail.
STAFFING
• Lack of skilled staff – kitchen staff remain hard to
find. Wage pressures are increasing. Opening of
international borders and relaxation of current Visa
workers should see this ease but it will take some
years to correct.
• Increasing competition for existing staff – sign on
cash bonusses being offered to bar staff.
• Owners and operators are becoming more involved
working in the business rather than on the business
due to lack of staff.
• At the recent 2022 QHA Symposium, I asked the
Queensland Attorney General Shannon Fentiman
when the Queensland Government would address
this situation and allow unvaccinated staff and
patrons back into hospitality venues. With high
vaccination rates it was pleasing to hear the
Minister's response that “everything is on the table
and open for negotiation”. The peak bodies of the
QHA and Clubs Queesnsland are aligned in this
directive and have met with the CHO on multiple
occasions over recent months to discuss this
progression. We eagerly await an early positive
response from government on this matter now
that the serious risk of COVID has largely been
addressed with adequate vaccination of not only
Queensland, but the Australian population. Note
that NSW has allowed unvaccinated workers and
patrons back (as @ 15th Dec 2021) and Victoria will
not address the issue until “well into 2022”.
TECHNOLOGY
• Massive initial growth of online food and alcohol
ordering (largest change in online spending) and
has been accelerating in the past 12 months. The
emergence of “Dark Kitchens” (kitchens away from
premises that supply the food) has lowered the cost
structure of producing food.
• Less reliance on cash as it was seen as a COVID
transmission device. Prior to COVID, cash was
typically 40% of trade maybe up to 60% for venues
with a lower age demographic. Currently most
venues are trading at 80%+ with card or device
payment.
• Use of digital ordering platforms in venue which
alleviates table service pressures and payment
handling at the bar.