CRAGGY RANGE, HAWKE’S BAY CRAGGY RANGE, HAWKE’S BAY
MARCH 2013
02
positive for year ahead
think your café is the best? getting on top of your 06 challenges
Hospitality operators have identified the key challenges of running a business today. We look at the costs hindering business and offer some solutions to assist with business prosperity...
14 CRAGGY RANGE, HAWKE’S BAY
Hospitality operators feeling With the world still affected by the global financial crisis, global economic activity is expected to remain subdued over the coming year. However there have been some encouraging signs on a local level, with industry sales in 2012 reaching $6.9 billion and overall the industry’s outlook is optimistic.
T
he hospitality industry recorded a positive 6.7% growth in national sales in 2012 over the year previous (an improvement on the 1.1% growth from 2010 - 2011). A breakdown of the industry by sector indicated almost all showed sales growth in 2012. The restaurant and cafe sector, which accounts for 50% of the industry’s sales, enjoyed a 5.6% increase in 2012. Takeaways reported a 9.1% increase to reach almost $1.5 billion. Catering services also recorded a 9.2% increase in sales while pubs, taverns and bars increased by 8.5%. A recent Restaurant Association survey also found that 55% of the industry considered that current business conditions for their business were good or excellent. Further, 77% believe that business conditions for the industry will remain the same or improve over the next 12 months.
overcoming our skill shortages
18 don’t avoid performance management
You can’t put the management of performance issues in the too hard basket. It is an ongoing process, requiring regular discussion and a formal review at agreed intervals during the year.
unpaid trial costly for employer
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Almost half of the survey respondents indicated that their sales in 2012 had increased, however they are also finding that it is more challenging to control costs, which as a result means overall profitability was down for some. The biggest challenge for the industry in 2013 has been identified as labour costs. Controlling food costs and operating costs is also causing concern and the Restaurant Association is looking at ways to assist members in these areas. One of the key themes business leaders have been emphasising is the need for the New Zealand economy to rebalance. While this looks to be a challenging task over the next few years, as one Hawke’s Bay member comments: “We all have to be optimistic for the future no matter how hard the outlook may be. We must remain enthusiastic, to keep staff moral up so we can deliver the service and friendly atmosphere customers have come to expect.”