The long road back for the Australian hospitality industry!

By June 8, 2020 July 9th, 2020 Article
cafe owners working

Australia’s hospitality sector has been deeply affected by Covid-19 ‘s social distance restrictions.

According to recent ABS data, spending on hotels, cafes and restaurants fell off the cliff during the March quarter, with the health and economic disaster affecting both large and small players across the industry.

Impact

Almost one million Australians lost their jobs in five weeks, with the hospitality and tourism sectors worst affected by social distance restrictions.

More than a third of staff in hotels, cafes and restaurants lost their jobs as of 14 March — the date Australia recorded its 100th coronavirus case.

The ABS payroll figures showed job losses of 7.5%, with wages down 8.2%. The numbers, as well as the 5 million Australians on the job-keeper, one million on the jobseeker and one million took early access to their Super fund are not unexpected statistics but still concerning.

According to a survey conducted by The Monday Group, a recruitment agency for the hospitality sector. The findings highlighted the impact of COVID-19 on 200 businesses in the hospitality business in terms of hiring, culture, and personal life.

Hiring

90% of respondents said they had to reduce their headcount and their salaries due to coronavirus. It is also noted that 58% of them have or expect to be laid off, often concentrated in the mid-level professional and junior managers segments.

Team motivation and mental health have also been identified as key challenges that will continue to be of concern as job opportunities are expected to remain low. 37% of respondents said they would employ fewer workers after the constraints had been relaxed, and more than 40% expect they might not be able to hire again till 2021.

Culture and communication

As restrictions begin to ease, only 11% of respondents predicted that they would start hiring again before August. For existing staff, 43% of respondents said that there has been a negative impact on the team culture.

The impact on culture cannot be ignored. During difficult times, workers have looked to their company owners and managers for guidance on actions and leadership, especially when communicating bad news. In absence of the right communication tone, rumors may begin to circulate which may have a negative effect on you and your company.

Personal Life

In addition to the negatives, business owners have also highlighted some of the positive developments they have experienced over this time. The primary areas found by the survey were that 63% spent more time with the family, 48% saved time by not commuting to work, and 45% did more exercise.

2020 Outlook

In terms of the industry’s outlook for the rest of 2020, respondents were divided between pessimism (44%) and cautious optimism (43%).

As we enter a new phase of loosening restrictions coupled with the upcoming long weekend (ACT, NSW, The NT and VIC there is no doubt we will see some form of honeymoon effect for hospitality in June.

Who is Coraggio?

Coraggio has grown significantly in the past year. We strive for greatness and encourage our members to dream big.

Our network of members continues to grow annually across the Eastern Seaboard. The growth of our Member businesses over the past 2 years has also escalated with turnover growing from $2.5 billion in 2018 to $3.5 billion in 2020. The number of employees across our Members businesses has also increased from 7,800 in 2018 to 9,200 in 2020. 

This demonstrates the Coraggio membership base contributes significantly across business communities in QLD, NSW, and VIC.

Coraggio Members are industry leaders who complement each other by sharing industry knowledge and experience, challenging assumptions, and solving business roadblocks and as a collective work towards becoming more effective leaders. Our members belong to the following industries:

Members

The resurgence of the hospitality industry requires business owners to be courageous and creative with their approach.

The following Coraggio members in the hospitality sector have weathered the COVID-19 storm and have reopened their businesses following strict social distancing and workplace safety guidelines:

  • Daniel Pinkstone and Grant Gladman

GM and COO, Mingara Leisure Group

  • Jason Manning

CEO, Pittwater RSL Club

  • Rob Rubis,

Owner, Manta Restaurant

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Neutral Bay NSW 2089

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