franchising council of australia (fca)
the fca... and it’s support of small business Mary Aldred is the CEO of the Franchise Council of Australia, the peak body for the nation’s $155 billion franchise sector. Mary commenced in the role in April 2018, bringing with her extensive experience across government, industry and the corporate sectors. As CEO, Mary has led the FCA in developing and delivering strategic priorities to strengthen the FCA’s role as an effective peak business organisation and advocate for a complaint, sustainable and profitable franchise sector. Franchise Council of Australia: Phone: 03 9508 0888 | Email: info@franchise.org.au | Web: www.franchise.org.au
The Franchise Council of Australia has welcomed the appointment of MP Julie Collins as Minister for Small Business in the new Albanese federal government and looks forward to working with Minister Collins in support of Australian small business owners. As Small Business Minister with responsibility for the Franchising Code of Conduct, the FCA provided an initial briefing letter to Minister Collins on changes implemented since the 2018 Joint Parliamentary Inquiry into the code and has requested an opportunity to meet in person to discuss several key issues for small business. Franchising experienced extensive regulatory reform under the previous government and is currently under pressure implementing and adjusting to these reforms, while also striving to rebuild and recover from the COVID pandemic. The FCA has advised that any further financial imposts or regulatory changes would significantly undermine the ability of small businesses to achieve full recovery given the existing demands on their time, resources and wellbeing. There are five key issues raised by our members as continuing to impact on their operations and profitability: 14 business franchise MAGAZINE
• Skills and labour shortages • Supply chain shortages • CPI and inflation impacts on businesses • Commercial leasing challenges • A national approach to sustainability and single-use plastics Addressing the issues facing Australian small businesses needs to be a priority for economic COVID recovery. From hamburgers to hairdressing, the number one issue for small business is availability of skills and labour. The lack of staff is holding back their ability to open and operate to full capacity. With record low unemployment, employers have tapped out on local staff availability. Australia desperately needs the pre-Covid levels of international students, working holiday makers and skilled visa holders to return to our shores. Take a look at seek.com.au - this month, there were 12,502 job ads for ‘chefs’, 15,643 for ‘waitstaff’, and 23,408 for ‘baristas’. Those figures are about 10% up from the same time last month. Coffee anyone? If you own a hairdressing business, you’ll have absorbed three recent award increases, and paying penalty rates on a Sunday means around $50 per hour per stylist. Factor in even a budget haircut at $40 per hour, plus product, plus rent outgoings plus customer cancellations. It’s not worth opening. At a close number two, supply chain
challenges are a nightmare. If businesses can’t source enough products, they can’t fill orders to customers, and can’t run to capacity. Project wait times go up and so do costs. A swimming pool business had material costs increase by about 180% from project start to finish because of delays, and their business had to absorb it. Thousands of small builders and construction contractors in this position, and they can’t continue for much longer. Accelerating wages and supply chain constrictions put pressure on the CPI, which sits at number three on our list. The Consumer Price Index measures the change in price of goods and services over a period of time and is now at 5.1%. Why is that important? Because it puts upward pressure on all costs. including interest rates. The
