Silverchef HISI Report by Ruby6

Y R OU FO ECI R SU R PE CC ES S

HISI

HOSP I TA L I T Y I N D U S T RY S U C C E S S I N D E X 2017

The changing

face of coffee culture

Has it always

been this hard to find good staff?

The survey

results are in! Read the insights into trends, challenges and opportunities for the industry

The power of two: How creative collaborations can give you an edge

Founder’s

NOTE

Hello, and welcome to our 2017 HISI Annual Report. This year, as always, we have committed ourselves to curating Australia’s leading hospitality review of the year we’ve had, and the year to come. Thanks to our incredible array of loyal Silver Chef customers, we have been able to compile large amounts of meaningful data; data that en masse showcases industry trends, challenges, and strengths. Our team has worked tirelessly to format this data into easy-to-digest facts, stats, and articles that will undoubtedly guide your business decisions for the year ahead.

This is an important initiative for Silver Chef personally. Our charitable work both on home soil and abroad with Opportunity International Australia has bestowed us with a highly regarded B Corp status. We pride ourselves on not just creating wealth and opportunity for our customers, partners, staff and shareholders; but also for those in need and less fortunate. Will you join the B Corp movement this year? For this year’s report, we shifted our focus slightly to bring you the most practical and real-world advice possible. Through extensive case studies and interviews with experts in everything from food photography to recruitment, you will find this report is full of incredibly useful information.

It’s fair to say that the 2015/16 has been the year of the coffee bean. Our cafes, roasters, and coffee suppliers have continued to ride the wave of unprecedented interest from consumers, who just can’t seem to get enough.

We have also taken a decidedly more modern approach, delving into the world of social media, online ordering and food blogging to help you - as a business owner - tap into the rapidly growing online arena.

However, we are now on the brink of a global coffee crisis. Supply of high quality beans and production is slowing, as it becomes harder to grow the beans due to drought and other natural disasters. Sadly, farmers’ income is often undercut by the supply chain, making it increasingly difficult to sustain practices. But we have the power to break the cycle and improve conditions for the farmers.

We hope you enjoy reading the 2017 HISI Annual Report as much as we have enjoyed putting it together. The world of hospitality continues to morph and grow in Australia, and it is an exciting time to be a part of that journey.

With the rising demand of coffee, consumer interest in this area is growing and it’s important to continue the education and awareness. The modern coffee drinker wants to know more about their coffee than how long it will take. The onus is now on you, the business owners, to tell them everything there is to know about what’s in their cup: where did it come from? What does it taste like? Who made it? Is it fair trade? With a coffee shortage predicted for the next three to five years, it’s now up to you, the cafe owners and the coffee roasters, to band together and educate yourself on your product’s supply chain; to ensure a safe and fairly-priced journey for the coffee farmers in the underprivileged communities in which they live. Continuing the trend of sustainable business is the wonderful work of B Corp. We sat down and spoke with Alicia Darvall, Executive Director of B Lab Australia & New Zealand, who provided us with great examples of how hospitality businesses are committing to sustainable practices.

Good luck for your year ahead, and as always, know that Silver Chef is here to help. Until next year,

Allan English Founder & Executive C hairman | Silver C hef G roup

CONTENTS ...

BY CHAPTER

HOW WE WORK

WHY WE WORK

INSIDE SCOOP

SU RV E Y INDUS TRY INS IGHTS

REAL ADVICE

T HE E X TRA E LE M E NT (PHILA NTHROPY )

How the Silver Chef solution works it’s simpler than you think.

Why the Silver Chef solution is so effective, using realworld examples.

Our inside scoop of the top trends for you to follow for the year ahead.

Real advice from experts in the industry, on everything from finance to food photography.

The surprising results of our annual Silver Chef industry survey.

The extra element to business: ethics. And at Silver Chef, we pride ourselves on our integrity.

CH 1 > HOW WE WORK

How

WE WORK

There’s not many companies out there who can say that they are in the business of ‘making dreams happen’. But for 30 years, that’s exactly what we’ve done. Silver Chef is Australia’s leading hospitality funding company. We offer an innovative and modern solution to getting small businesses on their feet, and, well, achieving their dreams. A barrier for entry for many small businesses is the cash outlay to obtain equipment in those early months of starting up. Without a long financial history, traditional lenders are unlikely to approve a loan - but at Silver Chef, we work differently. Silver Chef is an asset

management partner, so we help you to minimise the risk of doing business whilst giving you the flexibility to be agile and make decisions that best suit you. Plus, the cost doesn’t sit on your balance sheet, so it shouldn’t affect your ability to borrow from traditional lenders. In the words of so many of our customers: ‘it just makes sense’.

The agreement is only 12 months, by which time you’ll have a very good understanding of what is working in your business, and what needs to be returned, replaced or upgraded. Or some items you’ll know what you want to keep. Think of it as a commitment-free trial period, without the massive upfront costs of purchasing.

After we approve your funding - usually under 24 hours - you be able to finalise delivery of your chosen equipment from your preferred supplier and start trading. You don’t need to fork out a small fortune for your equipment, which will depreciate in value, and instead, save your cash and use it for when you need it most. Running a small business is a tough but rewarding gig.

Throughout this report, you will read about some of the happy Aussie bars, cafes, restaurants, pubs, and clubs who have worked with Silver Chef to make their big business dreams happen. If you think this sounds like you, why not give us a call? You might be surprised how easy it can be to turn your dreams, into a reality.

01 CHOOSE EQUIPMENT

CH 1 > HOW WE WORK

We proudly partner with more than 800 dealers to offer quality commercial food, catering and restaurant equipment, via our unrivalled finance solution.

02 APPLY FOR FUNDING

Our network includes private sellers, dealerships, and specialised outlets around the country.

We work with businesses of all sizes, but franchises and small to medium businesses are our specialty.

The equipment can be new or used; we also offer our Certified Used range.

It doesn’t matter if you have a team of 100 or a team of 1: we’re here to help.

03 12 MONT H CONT RACT

You choose, we pay, you use. It’s called Rent-Try-Buy®. It’s a 12 month contract that allows you to get setup with the equipment you need, straight away. During this 12 months, you can:

04 GET YOUR EQUIPMENT

UPGRADE your equipment at any time;

HOW DOES SILVER CHEF WORK? We’re the smarter, faster, option.

I T’ S AN O N G O I N G R ELATI O N SH I P

After 30 years in the hospitality game, we have a lot of advice to share. We have a constant stream of new and original e-books on our website and every year we release the HISI Report. HISI provides updates on industry trends, news, and events. Our website offers a free rental calculator to figure out your costs before even calling. Silver Chef has a number of options on offer; best of all, you can mix and match on individual pieces of equipment (rather than on contracts) to give you ultimate flexibility for your business. Here’s an overview of the various options you have available to you after the initial agreement, to help you figure out the best tailored arrangement for you.

Silver Chef is all about getting you set up, straight away. No wait periods.

PURCHASE equipment at any time and receive a 75% net rental rebate. 05 PAY WEEKLY RENT

Our flexible and affordable funding solutions are off balance sheet and 100% tax deductable, making it easy to budget for.

You will be able to save your cash, and free up working capital. With our anytime upgrade or swap at term options, you can adapt easily to market conditions and consumer trends. Remember, it’s the use of the equipment - not the ownership of it - that makes a business successful.

It’s low risk with no need for a large upfront capital outlay. We’ll buy the equipment while you decide if it’s right for you.

AT 12 MONTHS YOU CAN CHOOSE TO

EASY OWN®

One of our most popular options, Easy Own puts you on track to owning equipment that works well for your business. Enjoy a 30% discount and chip away at the payments bit by bit, without digging into your cash flow or capital.

Upgrade or change equipment

Your first 12 months are your chance to assess whether all the equipment you have is right for you. You can evaluate the quality of an item, whether it is too big or small and if there is anything new on the market. If you decide something you have isn’t working for you, you can choose to upgrade to something bigger, better or newer, or change it to something different if you don’t need that specific item anymore.

CONT INUE RENT ING

PURCHASE

RE TURN

Recommit for another year and get a 20% loyalty discount on your payments - perfect for those who want the flexibility to upgrade at any point. Alternatively, you can roll your contract over week to week with no agreement changes, which is great for those who are still deciding what they need.

If you decide you want to keep your equipment and don’t want to commit to a 3 year plan, another option is to purchase any piece of equipment outright. This option is perfect for those where cash flow is not an issue in their business.

Unlike other funding options on the market, Silver Chef allows you to return equipment after the short 12 month agreement. Don’t get stuck paying for unsuitable equipment for your business!

H OW WE WORK

CH 2 > WHY WE WORK

Why

WE WORK

When people ask us, ‘Why does the Silver Chef solution work?’, it would be painfully easy to rattle off facts, figures, and benefits. But for us, the proof is in the pudding: our fabulous client success stories. Success in this industry comes from learning from others. Sometimes, learning from their mistakes; other times, learning from their successes. This report will explore some of this year’s standout stars in the Silver Chef family: from cafes to luxury restaurants, pizza chains to coffee roasters, we know that success comes in many shapes and sizes.

Their case studies are dotted throughout the report so if you read anything that sounds familiar, give us a call to see if you too can match their success. Through their stories, you will read many different ways of running a business. Perhaps the biggest lesson to be learned is that there is no one ‘right’ way. We’re proud to showcase a handful of our clever, talented, and motivated customers - and hope that you’ll be on our list next year, too!

CH 2 > WHY WE WORK

PRIZE WINNING CAFE

COFFEE ANTHOLOGY SET THEIR SIGHTS ON PERSONAL ROASTERY

it was a shock when the phone call came through. He had won. First prize. Best cafe in Australia - Australia! - by renowned coffee review site Beanhunter. Open for less than two years, Brisbane’s bright and airy Coffee Anthology had beat national favourites such as Proud Mary in Melbourne, and Coffee Alchemy in Sydney to take out the main prize with an impressive score of 9.6 out of 10. Owner Adam Wang is humble in his success. How has his life changed since winning? “Since we’ve won, we’ve had quite a significant increase in foot traffic,” he says. “It definitely made the shop a lot busier!” The prize is a well-deserved feather in Adam’s cap: since graduating university, he has dedicated his career to learning the ins and outs of the cafe business. After leaving his job as a project manager in the construction industry, Adam spent seven years working for others, learning everything on how to start up a new cafe, to how to make the perfect cup of coffee.

2014 was his year. Taking everything he knew from his time as a barista, cafe manager, and operations manager; he combined them all for his newest role: cafe owner. Coffee Anthology sits in the heart of Brisbane’s bustling CBD, and is constantly busy with hordes of government employees, legal professionals, and the other corporates who live and work in the city. Coffee is their lifeblood, and Adam has had to work hard to get it right. In his small block alone, there are 15 other coffee shops competing for business. From the start, Adam knew he needed a point of difference to stand out from the crowd. His commitment paid off: Coffee Anthology boasts a diverse range of coffee blends, fresh and on-trend food, and extremely attentive staff (sometimes an anomaly for inner-city cafes!). Silver Chef has been Adam’s righthand-man since the beginning. Adam first met with the Silver Chef team before his cafe was built, recommended by a friend who was also in the hospitality industry.

We focus “ on consistency

and variety in our offering.We will always offer multiple roasters, and multiple brewing methods. We are here to showcase artisan roasters from around Australia.

“He said: It’s best for a new starter in the business,” remembers Adam. “There has been so much flexibility, and the process is so simple and straightforward - not like banks with their long applications. You can try out equipment, if you like it you can keep it...it’s just been so helpful.” Like many business owners, cash flow was an issue for Adam in the early days. He would work seven day weeks just to

keep things running, and was only able to afford a handful of staff to help with the early onslaught of pre-work coffee drinkers, and the lunchtime rush. These days, Adam is joined by his wife and a hefty eight permanent staff members who keep the popular cafe running smoothly. For the Coffee Anthology team, their prize winning success all depends on consistently good coffee. “We focus on consistency and variety in our offering,” says Adam. “We will always offer multiple roasters, and multiple brewing methods. We are here to showcase artisan roasters from around Australia.” But soon it might just be their own blend on offer! Adam is looking to open his own roastery late in 2016, inspired by the other Silver Chef-assisted roasteries he read about in previous articles online. So, will he be using Silver Chef for this next stage of business?

“Oh, absolutely. It’s definitely beneficial,” he says. “I don’t have to bear the upfront capital, so when it [the equipment] arrives, you start paying. It’s a lot easier and makes for a lot less stress.” Coming from what is now officially ‘Australia’s Best Cafe’, we can’t wait to see what Adam Wang and the Coffee Anthology team come up with for their first official brew.

COFFEE ANTHOLOGY (07) 3210 1881 126 Margaret St, Brisbane City QLD 4000 facebook.com/coffeeanthology

COFFEE ANTH OLOGY

CH 3 > INSIDE SCOOP

Inside

SCOOP

Hospitality is a competitive game. With the sudden shift towards casual, pop-up style eateries; the Australian dining scene is becoming more congested than ever before. How are YOU making sure your business stands out from the crowd? This chapter will give you the ‘inside scoop’ on staying abreast of the latest trends in Australia and beyond. We look at hot new foodie fads such as fermented food, business concepts like creative collaborations, as well as shifts towards sustainability in our booming coffee culture. Whilst we’ve handpicked the top trends for you to focus on in the year ahead, it’s important you continue your own research, too. The Internet is a

hive mind of creative concepts from restaurants, cafes, and bars from around the world. Make sure you keep yourself, your staff, and your customers inspired. Trends will continue to push our industry forward, so remain ahead of the pack. More Australians are eating out than ever before, and want to be excited and proud of the locations they pick. It says more about their tastes in food - choosing a location is a declaration of who they are as a person. With that in mind, choose food and business styles that you believe best reflect your target audience. But remember: one trend that will never go out of style is great service, and great food.

CH 3 > INSIDE SCOOP

MAJOR TRENDS

Night / street markets

The country’s increasingly strict lockdown on drinking and late-night venues has caused a happy accident: the flourishing of night markets. A wonderful opportunity for the local community to gather and sell their wares, it’s also a booze-free, safe, and family-friendly environment to attract new visitors, too.

Burgers

Once upon a time, burgers were the domain of fast food outlets or highway truck stops. Not any more. From wagyu beef patties to freshly baked buns, the humble burger has had a major makeover in recent years. Think gourmet - and don’t skimp on the truffle mayo, either.

Smoked meats Food trucks

With new liquor licensing laws dictating that those who are drinking must also be eating, food trucks have become a very handy supplier indeed. With nifty setups and minimal staff (how many can fit in a truck?) you can create anything from gourmet burgers to woodfired pizzas ... on the go.

From the heart of America comes one of this year’s hottest trends - smoked meat. Low-cost, easy, and accessible; smoking meat allows cheap cuts of meat to be reinvented with a delicious variety of flavours and sides.

Outlandish desserts

A milkshake. Topped with doughnuts. Topped with whipped cream. Topped with a chocolate bar. Topped with chocolate sauce. Topped with...well, you get the picture. As far as desserts trends go, this year is all about going over the top. Your imagination is the limit! F ermentation

Healthy AND delicious, the fermentation fad is showcasing everything from kombucha to kimchi, sauerkraut to pickled vegetables, yogurt to kefir. Make your own in-house, or opt for one of the amazing local, artisan brands that are popping up everywhere.

Pop- ups

Local artisan foods Multiple coffee roast options

The average Aussie coffee drinker now knows more than ever about where their coffee came from, who made it, what it tastes like, and where the proceeds go. It’s very hard to roast a coffee that is good for both black and milk based drinks. So the bigger trend is offering three grinders; one for milk based coffee, one for black and one for invitational (guest roast). This showcases your business as a serious contender in the industry and your customers will love having a choice.

Thanks to the Internet, home-run local businesses are cropping up everywhere. Using seasonal produce, local labour, and often innovative concepts, you can be sourcing artisan and gourmet foods made with local produce - AND support your local community.

Don’t want to sign a long-term lease? Try renting a space for a pop-up venue. It’s a great way to trial your concept, audience, and location before committing to a five plus year agreement. You can be as adventurous as you like!

Asian pancakes

Peking duck pancakes have been a staple of most Chinese restaurants for years, but recently they have stepped up to a whole new level. Everyone from laneway eateries to modern, edgy inner-city restaurants are trying their hand at the savoury pancakes, which are cheap to make and delicious to eat .

MA JOR TREND S

CH 3 > INSIDE SCOOP

RED ROCK NOODLE BAR TAKES THEIR DELICIOUS MENU ON THE ROAD Red Rock Noodle Bar is a pioneer in the healthy takeaway food space. Ten years ago, Red Rock Noodle Bar was founded in Queensland as a healthy alternative to the hordes of Asian food restaurants that then dominated the market. Rather than the typical greasy lemon chicken, or sweet and sour pork of the suburban takeaway jaunt, Red Rock Noodle Bar decided to make their dishes fresh on the spot, with high-quality ingredients, and healthy serving sizes. Phil Colburn is the Managing Director of Red Rock, and was one of the original founders of the business. With over 28 years in the fast food industry in Australia, he was well equipped to know what works, what doesn’t, and what gaps needed to be filled. A decade on, Red Rock Noodle Bar now boasts ten hugely popular locations across southeast Queensland, plus a fleet of food trucks that frequent music festivals, night markets, corporate functions, and community events. We sat down and spoke with Phil about his journey so far, and where he sees the Aussie takeaway industry moving to in the future. The biggest shift Phil notes is the rise of the ‘savvy’ customer: people these days don’t just want takeaway, they want the whole package. Healthy

ingredients, exciting menu options, nutritional information, and a beautiful dining space. “Probably the biggest thing that has changed is our customer’s expectations,” says Phil. “We’re making a big move towards casual dining. People want to get out of the house, they work all day, they’re time poor...they don’t want to just pick up takeaway, they want the destination experience as well.” Feeling like they are receiving a healthy alternative to their own home cooking is important for the modern consumer now, too, notes Phil. “They know what they’re looking for now,” he says. “They know that there is a lot of competition, and they know how to to pick the good from the bad.” In the years since they first started, Red Rock Noodle Bar has evolved its menu to suit the changing tastes of their market, and also to reflect the food trends moving through the takeaway space. With their original menu featuring standard flavours such as Satay Chicken and Green Curry, they have now branched out into more exotic items such as Pad Thai, Kway Teow,

eating “is aOutside major trend...

There are a lot more festivals and things happening, and people want to see familiar food on offer. Laksa Soups, and even a new Yum Cha menu that was launched six months ago. But one of the biggest trends they have leveraged is that of food trucks. “Generally with Queensland and our great weather, outside eating is a major trend,” explains Phil. “People like to sit outside...and there are lot more festivals and things happening, and people want to see familiar food there on offer.” A superior option to the sausage sizzle or dagwood dog, the high-quality food trucks are becoming a massively popular option at many large-scale events. In Queensland, Phil notes that ‘Eats and Beats’ festival and ‘Eat Street’ night markets have been two of their most popular destinations so far, with their food trucks enjoying sellout crowds at both.

With modified serving sizes and smaller menus, the Red Rock Noodle Bar food trucks are perfect for large crowds. It’s quick, easy, and made to order (as they always are) - plus can be conveniently eaten with a fork straight from the box, unlike some of the messier gourmet food truck offerings.

‘budget’ with Phil that was then offered to the various sites. Phil notes that the industry-specific nature of Silver Chef means they ‘just get’ the hospitality trade, and is a far superior option to traditional lenders that require lengthy explanations on issues unique to the food and beverage trade.

“Back ten years ago, the flavours were really basic,” says Phil. “And whilst we still have a few of those, people are now looking for more flavour, a little spicier, a little more exotic. We are regularly bringing in new products (to the menu) that we wouldn’t have even thought about ten years ago.”

Silver Chef’s journey with Red Rock Noodle Bar begun several years ago when they were recommended to Phil by a supplier.

“The fact that Silver Chef has a list of approved suppliers, and the fact that we can get the equipment so quickly, it’s amazing support for us,” says Phil.

They immediately partnered up to provide their new franchisees with an alternative finance option for their new kitchens, and to offer immediate upgrades and extra equipment for franchises that had existing kitchens.

“We’ve only ever had one problem, and the guys bent over backwards to help us – none of the traditional lenders would do that. They definitely don’t understand. You literally spend half your time trying to explain your issue, whereas Silver Chef is all over it. And that’s half the battle!”

On this note, Phil advises that is the quality of his suppliers that have really driven the innovation in their menu. Their fresh, on-trend options gave his franchise menus room to grow and evolve with their customers needs.

“Before, these options weren’t available,” notes Phil. “the biggest factor with Silver Chef is how easy it is to get the finance, how easy it is to pay it, they’ve got a great and and easy process sometimes with the banks, you’ve got to jump through a million hoops.” With the launch of their new Yum Cha menu, Red Rock Noodle Bar found themselves needing specific steaming equipment to be fitted out in all of their franchises, in locations both new and old. Silver Chef was able to source the equipment, and create a bespoke

Looking forward to the future, Phil believes that the casual dining space will only to continue to grow. His major focus will remain on the food truck innovations, and their evolving Yum Cha menu, which is proving popular for weekend visitors looking for a light snack that is high quality and in a fun, urban, and liquor-licensed space. In terms of flavour trends, Phil reckons we are facing the most adventurous crowd in Australia yet.

Red Rock Noodle Bar is a great example of how a seemingly simple business idea can remain strong in a congested market. Through simple menu innovation such as Yum Cha, and a calculated risk with their food trucks, Red Rock has stayed relevant and competitive with the help of Silver Chef and a keen ear for their consumer’s desires.

RED ROCK NOODLE BAR 1300 4733 7625 Multiple locations across Queensland redrocknoodlebar.com.au

RED ROCK NOODLE BAR

CH 3 > INSIDE SCOOP

trendy dining area out the back with some amazing food coming out of the kitchen.”

WHAT DOES THE FUTURE HOLD FOR OUR

LOCAL AUSSIE

PUBS AND CLUBS? ... They are the stalwarts of local Aussie entertainment. Before nightclubs, pop-up bars, and street markets – there were the great Australian pubs and clubs.

Indeed, it is harder these days to find a pub that isn’t reinventing old favourites and reworking the classic pub interior. As we are all finding in the hospitality industry, millennials (or ‘Gen Y’) are connected first and foremost online. According to Jodie, the pubs and clubs sector has come to see new technology and social media as the tools to attract a younger audience. “Clubs and hotels are slowly becoming more digitally aware with innovative POS systems for ordering, websites and Facebook pages, and members discounts online,” she says. “But there is a fine line between balancing the new technology and attracting the younger customers without alienating the older, existing customers who aren’t as technologically savvy.” In 20 years time, 25% of Australia’s population will be over the age of 65. We are an ageing population, and Jodie notes that it is important to maintain an equal handed focus on both the younger, and older, Australian.

Every suburb had one. Whether it was your local sports club, or a cornerside pub, these were the meeting places for a steak, a beer, and a yarn. Maybe a shot of pool or a quick game of bowls. But as the younger generation begins to move through, the Aussie pubs and clubs of yesteryear are undergoing dramatic new makeovers to bring them into the 21st century. We spoke with Silver Chef manager of the Pubs & Clubs division for Australia, Jodie Terzis, to talk about how these local institutions are stepping up their game. It pays to trace back the start of this shift, back to the early 2000s when pubs and clubs began to experience a renaissance among the younger audience. In 2002, the low-budget (but hugely successful) film Crackerjack was released. It followed Mick Molloy’s character Jack as he joins his local bowls club, playing against the other elderly members. At the time, it was a comedy - as if a young guy would ever dream of joining a bowls club! It had nothing but oldies in starched white uniforms. But the movie sparked an interest, and the quirky practice of bowls - along with 1970s beer prices - saw it start a wave of popularity with young Australians looking for a new venue to drink at on a sunny Saturday afternoon.

The Australian ‘Jackaroos’ lawn bowls team, for example, has an average age of 29, with the oldest member 41 and the youngest just 18. In 2016, Bowls Victoria has 850 registered members under the age of 20 and a further 1,200 aged between 20 and 30. Aussie pubs, however, sought their recent revival from abroad. The ‘gastropub’ was a term that originated in England, as restaurateurs and sommeliers sought out new spaces to practice, in London’s congested inner city architecture. Before long, Australia began to shift its fine-dining experience from chic, inner-city restaurants into the lively and spacious suburban pubs. Jodie Terzis looks after the clubs, hotels, and pubs under the Silver Chef brand for Queensland and New South Wales. Her role has seen her work with hundreds of locations of varying sizes and success, and she is well versed in the cultural shift currently underway in her sector. “This is definitely not an outdated industry!” Jodie says passionately. “There are some great chefs out there who are transforming our pub culture, and the market is huge. We will still be able to get our beer and watch sport at the local; but you will probably find a

“Clubs have done their research and their primary target demographic is women 60+ years,” notes Jodie. “The clubs that have this information are using it to attract this demographic to their clubs with discounts, entertainment, gambling and food and beverages aimed at this audience.” When it comes to the younger crowd, however, the pubs and clubs sector are facing dramatic changes thanks to the new liquor licensing laws, lockouts, and laws around drinking. Surely this must be causing huge damage to the opportunities for our local pubs and clubs? Jodie is sceptical about the changes. With the laws yet to be enforced in Queensland, she can only look to New South Wales where the lockout laws are in full force - to try and understand the affects it has had for their audience. “An article in The Daily Telegraph recently suggested that the incidents of violence

in the CBD before 3am has dropped, however the incidents of violence in Kings Cross before 3am has not dropped. The ban on takeaway (alcohol) sales has also had a huge impact on venues.” “I think a review is needed to look at whether changing the times in certain areas will have any impact on violence and the viability of businesses.” The adaptation of pubs and clubs has been remarkable. With late night drinking and strict new laws on outdoor drinking, these local venues have begun to broaden their horizons for alternative money-making opportunities. Broadbeach Bowls, for example, has just undergone a huge renovation in preparation for the 2018 Commonwealth Games, in which they are hosting the lawn bowls competition. Jodie is quick to point out the value in these events for both the community and the club. “Whilst this will cater for the bowling crowd,” she says, “what is left at the conclusion of the games will be a first class venue that will cater for locals and tourists alike, with a great shift in the culture of their food and beverage.” Clubs NSW CEO Anthony Ball notes that part of their image makeover is to attract new and different audiences. “Bowling is seen as a game for grandparents and fuddy duddies, and it needs to shake off that image,” Mr Ball said. “There is a lot more competition for people’s attention than there was in the 1950s. The challenge now is to adapt or die.” Looking forward to the future, Jodie is excited for the future of her sector, but

There is a fine line “ between balancing

the new technology and attracting the younger customers without alienating the older, existing customers who aren’t as technologically savvy.

is not without a realistic view on the struggles the lockout laws will cause. “I believe that things will change in the next 10 years - and maybe not for the better,” she notes. “There will be a period of time where these lockout laws will go backward and forward as the industry and the politicians try to get it right. I believe that clubs and hotels are the safe spots to be and the violence is just being moved out into the street.” And yet, the innovation being shown is remarkable. Bronte Bowls Club has become a childcare venue, whilst Maroubra Bowls Club holds weekend markets and is considering a microbrewery. On the pub front, an insatiable appetite for the ‘gastropub’ fare keeps them moving ahead, with some pubs such as The Oxford Tavern in Sydney serving American BBQ and smoked meat. Pubs and clubs have been a long-loved part of the Aussie leisure time, and it seems they will continue to be for many years to come.

PU BS & CLUBS

CH 3 > INSIDE SCOOP

A QUICK COFFEE WITH

Rob Palmer

Food Photographer ...

It is common knowledge that we eat first with our eyes, and then with our mouths.

We sat down with renowned Australian food photographer Rob Palmer and got his opinion on why taking photos of our food is so very interesting.

Hi Rob, thanks for talking with us. Let’s start at the beginning; how did you get into food photography? It certainly wasn’t a decisive move on my part. I started out shooting surfing back around 1998. I had an older mate, Dean Wilmot, who was one of the top guns at water photography who opened the door for me into the surf industry. We’d travel to Hawaii each year for the winter season and shoot together non-stop for a few months, and while we were back in Australia I’d help him with the rest of his business. At one point he began sharing a studio with a couple of food photographers and I started assisting them on shoots to help develop my lighting skills further from what I’d learned on the beaches. This was when I started in food photography. I got along really well with the people in the industry and I really loved the dynamic of mixing people, food and lifestyle on each shoot. I started to build up my brand from here.

Being in the business for over a decade, you’ve surely seen the rise and fall of plenty of food fads. What trends have you seen come and go in recent years? From a photography perspective, styles such as shooting super tight in on the food with very shallow depth of field was very popular when I first started out. Now photographers have moved onto a more relaxed and pulled back style that allows more of a story to be told.

Food used to be shot perfectly presented, but now everyone is trying to capture a moment - letting the crumbs fall across the plate or table, the dirty knife loosely placed edge of frame, the filling oozing and dripping from the roughly cut slice. More recently for a while there many photographers were getting a bit carried away with the treatments and filters they were applying to their images. Most photographers have pulled back massively on these techniques as they now look very dated. Food wise, there has been a huge movement towards more simplified food and recipes; not only for ease of preparation, but also for the health benefits that often come with it. Obviously there are a lot of health trends and flavour of the month superfoods that come and go, but generally people see the importance of understanding what they are eating, so authors and chefs who take a healthy eating/living stance have continued to do well.

Can you tell us some weird ways food stylists prep the food? [Laughs] We’re not in the 90s anymore! I know you want to hear about hairspray somehow being used - but when it comes to magazine and cookbook images, these days it’s all real. I’ll admit though, when it comes to advertising shots, you may not want to eat any of the food off set. For one, it’s been sitting there a bloody long time. Secondly, some of the food hasn’t always been cooked through properly in order to get the perfect finish; the scallops may only be lightly pan fried, the turkey cooked just until the skin looks golden. And lastly, yes, the tricks start to come out; Vegemite lightly brushed onto the tartlet shells to make them more even and golden in colour, cardboard may be placed between the layers of a cake for stability and to easily allow control of the cream

Rob Palmer has been working as a food photographer for almost 15 years. Travelling across the world, Rob has worked in the UK, Italy, and China for television series’ and food magazines. Closer to home, Rob’s beautiful work has featured in campaigns for Sunbeam, Nestle, and a variety of cookbooks from Penguin and Random House.

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between each layer, the scoops of icecream are prepared and then placed in a container of dry ice to freeze them solid to help keep their shape once out on set. I’ve even heard of stylists soaking tampons in boiling water and shoving them inside freshly cooked chickens to help keep them hot and looking plump so that the skin doesn’t wrinkle as quickly!

Food porn. It’s the biggest thing to hit the Internet since Facebook. Why do you think amateur food photography on Instagram has become such a massive trend? It’s always been said that food is the gateway into other people’s lives. Seeing what and how they eat gives us great insight into the sort of people they are and how they live.

What are your top tips FOR restaurants looking to get professional food photography done? 1. Understand your own brand and who your customers are. How you brief your photographer is crucial to the style and end result you will receive. If you are a fun and friendly local bistro, then there is no point in shooting your dishes to look like you are a Michelin Star restaurant. It’s important that the final images work for you and improve your business. 2. Keep it real. Don’t try and trick the food up too much, simply to make the image look more interesting. 3. Depending on the level of your venue, use a food stylist. It may seem excessive to pay someone to bring extras props and plate the food for you, but these guys know what they’re doing and are experienced at making food look great in front of camera. Plating for a customer and plating for photography are often two very different things.

Is it true we eat with our eyes? How important is it for food to look good? There’s no doubt that we make a judgement about the food we are going to eat, way before it touches our tongues. We all enjoy that moment of anticipation when a fantastic looking dish is placed in front of you, but you can’t start on it until all the others at your table have been served. Most business owners know that customers make judgements about their food well before they’ve even tried it. Many places are beginning to realise that maybe the visual feast comes with the theatrics of food preparation rather than simply displaying every ingredient or dish on the menu within a glass top counter. The plumes of scorching yellow flames around a hot sizzling wok, the pastry chef casting a blowtorch across the tops of the creme brȗlée, or the lovely aromas that escape from the woodfired oven as the fresh pitas are removed are FAR more enticing than the slop trays of butter chicken or the containers of wilted salad leaves.

USING A SMARTPHONE? Here are Rob’s simple tips to the perfect shot…

You’ve worked with a lot of amazing chefs and restaurateurs. Who was your favourite person to shoot for?

Try not to take your picture under the overhead lights inside your restaurant or store. The simplest way is to set up your picture next to a window but not in the direct sunlight.

It’s a bit hard to list just one as I have a different experience with every person I work with! One of my favourite books I shot was a while ago for a small Syrian restaurant in Darlinghurst called Almond Bar. The food there is fantastic and the two sisters running it, Sharon and Carol Salloum, were great fun to work with.

Set up side on to the window so that your subject has a bright side where the light hits it and a dark side in shadow, this will give it some form. Then simply use a piece of white card or paper to bounce or reflect some light back into the dark side so that it cleans up the shadows and holds some detail without getting too dark.

More recently I’ve been working on Manu Feildel’s new book; he’s an absolute classic! From the moment he walks into the studio the jokes begin.

We all enjoy that moment “of anticipation when a fantastic looking dish is placed in front of you, but you can’t start on it until all the others at your table have been served.

Simple side lighting will make a world of difference to your images. You can see more from Rob’s work at robpalmer.com.au or contact him directly at rob@robpalmer.com.au ROB PALMER, FOOD PH OTOGRAPH ER

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TRENDY BRISBANE EATERY

PINEAPPLE EXPRESS TAKES MODERN APPROACH TO HOSPITALITY Pineapple Express IS onto a very good thing. The Brisbane eatery is a cafe with “...a special emphasis on superfoods, and everything that is ‘good for your insides’”. An on-trend concept based out of an even trendier location the booming Portside precinct - it is hard to imagine this concept ever doing poorly. Cleverly leveraging the current paleo, vegan, and exotic food trend sweeping the Australian food and beverage industry, this small cafe is attracting big attention. Some people are made for hospitality. And listening to 34-year-old owner and director of Pineapple Express Leigh Metzeling talk about his experience, you can tell that he’s one of those guys. His CV reads like a dream in hospitality management. This guy has literally covered all territory. He started out taking ‘hospitality’ as a vocational subject during his school year, before moving on to a chef’s apprenticeship at The Hilton, eventually switching to a degree in Hotel Management (“It was too intense in the kitchen!”). And thrown in just for good measure? A tertiary Bachelor degree in Business, Advertising and Marketing.

From scrubbing pots to scribbling slogans, Leigh knows the hospitality industry inside out. “You get to know what works in the business,” laughs Leigh. “You get to know what areas to put together. You’ve got the cogs - like the kitchen, the stock, the equipment - and then the front of house, which is the people.” For hospitality veteran Leigh, the Silver Chef solution was a recent discovery. Leigh is still happily surprised at what an excellent business partner they have made. “It would have been so tough without Silver Chef,” says Leigh. “It’s a total ease of burden, and made the equipment side of things so easy.”

Silver Chef “understands

modern business is all about supporting collaborative ownership - and it is therefore exciting to watch this group of young friends work together to launch their dream cafe.

Leigh is one of five directors in the Pineapple Express cafe, and also runs two other venues - Capulet bar in Brisbane’s Fortitude Valley, and SASS Management on the Gold Coast. A smart investor with plenty of experience, he had no trouble launching his business through traditional methods. With a strong business history, he was approved for a traditional bank loan from the start.

solution than simply shelling out their own cash. It was then that their building team, Tu Projects Brisbane, told Leigh about the Silver Chef offer. Not just a perfect lender for those looking to start their own business, Silver Chef also caters for successful businesses simply looking for a smart alternative for their equipment lending.

Along with the bank loan, Pineapple Express also got a kickstart from the partners’ private savings to cover the purchase and building costs. But when it came to the fit out of the kitchen, they were looking for a more innovative

“Silver Chef is a great option for us,” notes Leigh. “There is a base payment per week, and we didn’t need to pay it all upfront. The guys at Tu Project just said, here is what you need, and here’s where you should get it.”

Following Tu Project’s advice, Leigh called Silver Chef, and was approved on the spot. Within a week, his equipment arrived, and Pineapple Express opened its doors to Brisbane’s healthy army of green smoothie enthusiasts. So for a successful young entrepreneur like Leigh, it is the product flexibility and hospitality experience that were the primary attractions to Silver Chef. “If something breaks down,” says Leigh, “there’s a solution to the problem. You don’t have to wait.” More importantly, he was able to order exactly the equipment he was wanting, without having to settle for a replacement brand or model. In fact, Leigh opted for an end-to-end fit-out – from benching, sinks, juicers, blenders, shelving, microwave, ice machine, display cabinet, dishwashers, fridges, ice makers and chiller freezers, he went with Silver Chef for it all. As one of five partners in the Pineapple Express venture, Leigh loves the community feel to the management team. “We all bring skills to the table,” he says. Silver Chef understands modern business is all about supporting collaborative ownership - and it is exciting to watch this group of young friends work together to launch their dream cafe.

It’s easier than ever to turn your dreams into a bricks-and-mortar reality. The innovation of Silver Chef works off exactly that premise - this is 2016, not 1966! There are smarter ways to get your business off the ground than just setting yourself back into deep debt.

It’s an exciting “ new world for small

businesses.

We’ve been providing Australians with hospitality equipment funding for 30 years. That’s three decades of dedicating ourselves to understanding how we can help those specifically in the hospitality industry. We like to believe that we’re the perfect business partner to young guns like Leigh Metzeling, and can’t wait to see what he - we! - are doing next.

PINEAPPLE EXPRESS Shop 9, 39 Hercules St, Hamilton Q 4007 pineappleexpress.com.au

pine apple e xpress

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and neighbours, and the rest, as they say, is history.

THE

Every human body houses over 100 trillion good bacteria, with much of it collected in our stomach and intestines where our immune system lives.

ERMENTATION FAD HITS AUSSIE SHORES IN A BIG WAY

Fair to say that fermented food was never part of the classic Aussie diet. For many Australians, the only way fermented food would have found its way onto their dinner plate was via a parent or grandparent who hailed from overseas. Perhaps it was your German grandmother adding a dollop of sauerkraut, or your Vietnamese aunty heaping on some kimchi. For centuries, the amazing restorative and nutritional benefits of fermented foods have existed in a variety of cultures. From Mexican salsa, to Japanese pickled vegetables, almost every culture in the world matched a fermented food with the fatty or stodgy elements of a meal such as fish, meat, or carbohydrates. Why? The acidic element assists in the breakdown of food in your gut. But Australians? Nah, mate. No fermented food here. Thankfully, that’s all changed. Once upon a time, the most exotic fermented product you could buy in the local supermarket was the arguably effective but rather unpleasant Yakult. Not anymore. In recent years, fermented food has crept out of traditional cookbooks and onto the trendy plates of urban eateries. With conclusive reports now proving that gut health can be linked back to the treatment and prevention of a variety of diseases including neurodegenerative disease and mental illness - it is fair to say fermented food is enjoying a renaissance….in a big way. It’s delicious, it’s healthy, and it’s kinda...cool? Australia has always been quick to adopt a health food fad (ahem, acai bowls) and the fermented food trend is no exception. Once the property of obscure health food stores, everything from kimchi to kombucha is now being produced and sold in commercial quantities, in cafes, high-end restaurants, and urban food markets alike. These days you can pick up a delicious coconut kefir, a strawberry kombucha, or garlic and chilli kimchi. All at the same time being well assured that all products are working overtime to restore balance and health to your gut.

And it is not just on our shores - according to a report published from BCC Research, the global fermented food industry, it is expected to peak at almost $37 billion in the next two years. “The global market of probiotic ingredients, supplements, and foods has reached nearly $23.1 billion,” notes the report. “This market is expected to grow to $36.7 billion in 2018 with a compound annual growth rate (CAGR) of 6.2% over the five year period from 2013 to 2018.” However, just because it’s fermented doesn’t automatically make it healthy. It’s really important to do your research and make sure you bring on the right suppliers who can back their product with accredited nutritional information. The 2016 GROW Conference hosted fermentation expert Sharon Flynn, who, after decades in the game, has played a big role in the rise and rise of fermented products in Australia. Sharon’s company, The Fermentary, has been up and running in Melbourne since her return from overseas. Her journey, however, started many years ago as a 20-year-old in rural Japan, where an elderly Japanese neighbour taught her the art of fermenting soy beans to create miso. From here, her travels saw her naturally gravitate towards the various fermented products on offer around the world - pickles and sauerkraut hot dogs in Chicago, pickled ginger and sushi in Japan, and creamy yogurt and kefir in Brussels. Secondary to her delight in their flavour, Sharon began to learn about their extraordinary health benefits and the gut/brain connection, something that took on special significance when her daughter fell ill some years ago. From here, she begun to produce her own fermented products at home, then for friends

In an article from The Sydney Morning Herald, reporter Sarah Berry noted the benefits of this bacteria. “Scientists know bacteria is vital for our survival,” she wrote. “It supports digestion, allows us to synthesise vitamins and it bolsters our immune systems. When bad bacteria gets the better of our bodies, it is thought to contribute to chronic diseases and conditions like irritable bowel syndrome, asthma, and possibly, obesity.” But as Sharon said in her lively presentation, the medicinal notoriety of fermented foods has given it an odd reputation. “People often ask me, how much should I take?” she laughs. “And I’m like, ‘take’? It’s food!” Sharon is all about the taste. And for great taste, she commits herself to the integrity of the fermenting process. She uses the traditional 8,000-year-old techniques to ferment her food and beverages, going so far as to only use rainwater, and homemade fish sauce for her kimchi, free of any additives or preservatives. Pretty impressive for a commercial size business. Sharon believes that the more modern methods of fermenting - sterilising the food and adding powdered bacteria rids the product of the rich flavour and

extensive good bacteria that exists in natural ferment. The process of sterilisation of the food - which Sharon calls ‘crazy’ - was at the request of the council for commercial sale. In order to kill the spores on the vegetables prior to fermentation, the food is actually bleached. According to a book on the topic by Thomas Applewhite, “The chemical compounds that may be utilised in the food industry for sanitation purposes, particularly to destroy spores, are bleaching compound i.e. 5% sodium hypochlorite, or common bleach.” Clearly, not all fermented foods are as natural or organic as what Sharon offers to market, and it is important to note this when selecting brands to sell or use in your business. The consumer is becoming increasingly aware what they are putting in their body, to the point that they are even selective in the production process. Kimchi is not just kimchi: they want to know where it’s produced, what ingredients are used, and the level of chemicals or artificial bacteria present. And you need to be able to answer those questions. Showing your customers that you care about what process and ingredients are involved in the food you’re serving them will only work to strengthen your brand values, and establish a brand story. You must have a point of difference against your competitors, particularly in the organic/health food market.

exciting new opportunity to expand your menu to exciting new places. Here are some interesting ways to incorporate fermented food into your traditional cafe menu:

1. Kombucha pancakes or waffles: the fermented drink acts just like a baking soda, and creates impossibly fluffy mixture! 2. Try your hand at making your own mexican condiments to accompany nachos or baked eggs: fermented habanero hot sauce is super easy. 3. Add to your cafe display by pickling your own veggies, lemons, or labna: they look great, and can be accessed at any time.

For restaurants and cafes, the fermented food trend presents an

Scientists know bacteria is vital for our “ survival. It supports digestion, allows us to synthesise vitamins and it bolsters our immune systems.

Sharon Flynn from T he Fermentary

FERMENTATION

His speech provided profound insight into the struggles of the modern-day coffee grower, and the very simple way we, as business owners and consumers, can help.

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...

THE CHANGING FACE OF

COFFEE CULTURE Coffee is a staple in most people’s lives. Whether it’s what wakes you up in the morning, or is served to your customers during the day; coffee is an intrinsic part of social culture around the world. In Australia, we are undoubtedly in the midst of a ‘coffee boom’, with independent cafes and coffee roasters riding the wave of unprecedented consumer interest in coffee. Having seen the results of our industry survey for FY16/17, coffee is definitely the golden child of the moment in hospitality. Your customers love it like never before - they want to know what blend they’re drinking, where it’s from, and why it’s unique. But a new, far more important facet is now being called into question by consumers and cafe owners alike: who are your coffee farmers, and are their business’ sustainable? The word ‘sustainable’ is often misunderstood. Whilst it absolutely pertains to environmental processes and your carbon footprint, it also applies to the human side of a business, too. Are the producers being paid fairly? What are their conditions like? Is there a ‘closed loop’ of communication in the supply chain? This is where fair trade coffee comes into the picture. All of the concerns above are categorised, challenged, and solved by international fair trade organisations such as Oxfam, the World Fair Trade Organisation, and the International Coffee Organisation. Whilst it seems like quite a modern preoccupation, the fair trade movement is actually over 70 years old.

The history of the fair trade movement begun way back in the 1940s, when the United States was negotiating trade of Puerto Rican needlework. The first ever official ‘Fair Trade’ shop - which sold these and other items - opened in 1958 in the USA. From here, a long and difficult battle began to seek out ‘fair’ prices for traded items from poor or disadvantaged communities. It is one that continues today. In more recent years, coffee has become the greatest commodity to be focused on by fair trade organisations, with agreements drawn in 2001 and 2007 that aimed to stabilise the coffee economy by: “...promoting coffee consumption, raising the standard of living of growers by providing economic counselling, expanding research to include niche markets and quality relating to geographic area, and conducting studies of sustainability, principles similar to fair trade.” But the fact remains: coffee is grown in some of our world’s most troubled regions. From Mexico, Columbia, Guatemala, El Salvador, Africa, Indonesia, and India; the third-world conditions that give rise to prolific gang activity, crime, and poor working conditions. So whilst the fair trade coffee movement of the past has endeavoured to improve the relationship between growers, buyers, and consumers massive structural problems still exist. Earlier this year, Melbourne-based cafe owner and coffee expert Nolan Hirte spoke at the GROW Assembly, a hospitality-specific education event and showcase.

The first step, he says, is to expand the current coffee obsession among consumers to include the supplier journey alongside taste and origin. With education will come awareness and appreciation, he says, at which point we can start passing on fair prices to the farmers growing the coffee. “There are a lot of baristas in Melbourne now, there are a lot of coffee people,” Nolan says. “But I’d say a lot of them don’t really understand where it comes from. They work with it every day of their life, but they don’t see the true value behind it. It’s not about how to make a latte. It’s about understanding coffee’s nature, how things work, moving with the seasons and appreciating where it came from.”

Fast facts on coffee costs : + Many of the countries where

coffee is grown (like Africa, India, Columbia, Mexico, Guatemala, or El Salvador) are third world communities overrun with criminal activity.

+ In El Salvador, coffee is

almost extinct due to the mismanaged supply chain and low pay.

+ Coffee producers in

Honduras are so badly underpaid, one of Nolan Hirte’s suppliers only produced half their normal coffee supply last year.

+ There is often a ‘middle man’

in the supply chain, who can skim off part of the suppliers fees.

+ Even charging an extra

50c on our coffee prices will make a huge difference to what we can pay the struggling suppliers.

Nolan has personally travelled to many of the farms from which Proud Mary sources their coffee. From Costa Rica to Honduras, he has spent an extensive amount of time with the farmers and their families, speaking with them about the struggle of finding a price that matches the quality of their coffee, but still is achievable for the Australian market. Nolan gives the example of Maria and Alfredo, a couple who own a coffee farm in El Salvador. Working with them, he visited several years ago only to be shocked by the conditions they were struggling to survive in. Formally a coffee giant, El Salvador dropped to half their normal rate in 2010, producing just 1.9 million bags. In 2016, it was a shocking 450,000. In a stroke of luck, this year Maria found five ‘special’ coffee trees on her farm. Tasting the coffee - with only 20kgs worth - Nolan was convinced this bean deserved a special price to match, and offered Maria $25/pound, as opposed to the standard $4/pound. “Her jaw dropped,” he recalls. “One thing I know is that next year? That’s my coffee. No one else is getting that. And the second thing is, she’s getting value out of that. She’s the one that discovered it, she’s the one that’s doing the work. And you guys need to pay for it.” Like many other cafe owners and coffee lovers in Australia, Nolan talks a lot about ‘integrity’ in the industry. The coffee business has long struggled with issues of unfair and even illegal working environments - hence the introduction of clearly marked ‘fair trade’ brands. But it is now time to take a step further, and push for ‘fair pricing’, too.

you knew all about it, as you would an expensive cheese or wine. Would you not be compelled to pay for quality? You only need to look around any of Australia’s urban centres to see that coffee has taken on a new identity. No longer is it simply something to wake you up on a Monday, or get you through a late night of study: coffee is a delicacy in its own right, a beverage to be understood and enjoyed as you would a fine wine. But more so than communicating the aroma, acidity, body, flavour, or origin of your coffee...why not communicate the supply journey and the farmer’s story? At present, the education behind the bean-to-barista journey is really limited. Even the most progressive and committed coffee shop owners among you will generally only offer the location and qualities of their chosen beans origin - both important aspects to know, but what about the farmer? What about the price? Fair trade and sustainable judgement of a coffee blend is no longer the interest of a devout barista or socially aware cafe owner, it’s the curiosity of the common customer. Education is power. Communication is key. Charging $4.50 for a cup of coffee will make no sense to your consumer until you explain why. As Nolan so expertly portrayed at the 2016 GROW Assembly, putting a face and a story behind the beans you are grinding makes this price shift so much more profound.

Nolan raises an excellent anecdote - 17 years ago, he says, he was charging $3 a coffee. Today? You’re lucky to push it to $4. Consider anything else from 17 years ago - rent, car rego, petrol, a litre of milk - and you will be hard pressed finding anything else that has failed to grow with inflation like coffee. Most people would be outraged to pay $5 for a cup of coffee, sure. But what if COFFEE CULTURE

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“

Baristas work with coffee every day of their life, but they don’t see the true value behind it. It’s not about how to make a latte. It’s about understanding coffee’s nature, how things work, moving with the seasons and appreciating where it came from.

I nterview with Nolan H irte , Proud Mary Coffee Melbourne .

Nolan, how can current restaurant and café owners continue to educate consumers on coffee prices and production?

coffee menu based around education and perception, we want to create opportunities for the consumer to learn and get excited - and hopefully even blow their minds!

is no shame in it and there is a much more approachable option for them. Creating trust that you can deliver the goods when you say you can is also really important. Words are cheap.

How can owners price their coffee effectively without isolating the customer?

How can coffee shop owners build relationships with farmers directly or source sustainable coffee?

It is really important that the restaurant and cafe owners understand or learn as much as possible about where they are buying their products from. If there is a solid understanding or emotional connection to where the products come from in the first place, then educating the consumer becomes relatively easy. People can feel when someone believes in what they are saying. Then this real connection with the product will translate to the consumer and they will be happy or more willing to spend.

Do not undervalue your products. If you have something special, then there is a great opportunity to raise the price and talk about it with your customers. If the product is truly good, it should be able to back you up and excite your customers too.

How do you do this at Proud Mary?

Eg. “Here are three options, all different prices and all complete different coffees based on character and process.”

More often than not, the consumer really wants to support a real story behind a real product. It’s our job to make sure we are telling the truth and letting consumers know what is special about what we do. Something we have introduced at Proud Mary is a curated

“Yes, the third option is the most expensive but seriously - it is amazing, and it is worth every cent.”

Communication and understanding is the key - if all the staff are behind the coffee and the story, it will be much easier for the consumer to get behind it too. I like to try and create options for the consumer, I don’t want to force them into spending up.

I find that in most cases, the consumer in this situation will want to spoil themselves and get the best; if not, there

Building relationships with farmers directly takes time and money, and requires really putting yourself out there. Most cafe owners won’t get the opportunity to travel abroad to their supplier and go to this level of sourcing their coffee. That’s totally fine, just make sure you are buying coffee from someone you believe in and trust - that’s what really counts.

PROUD MARY COFFEE (03) 9417 1444 200 Wellington St. Collingwood V 3066 proudmarycoffee.com.au

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KNIGHT WITH SHINING REPUTATION SURE TO SAVE YOU WITH HIS COFFEE Knight’s Coffee & Tea makes a big promise with their slogan, ‘Sublime Every Time’. But headed up by major coffee fanatic and long-time hospitality industry worker Jake Knight, we think they might just be in with a chance. He came prepared: Jake made his first coffee way back in high school, when he worked as a barista after class. He continued on working in cafes after graduation to save for his first overseas trip, and stuck with hospitality as he travelled through the UK and more. Upon his return, he began his three years of business school - but even still, Jake was making coffees. Working for two of Australia’s biggest coffee suppliers - Toby’s Estate, and Campos - Jake cut his teeth learning about not just the tastes, but the origins of the beans. By the time he was ready to start his own cafe, his education in how to supply his customers with a latte that was ‘sublime, every time’ was complete. Knight’s Coffee & Tea opened their first store in Sydney’s Haymarket almost four years ago now. “I’ve always had an interest in hospitality,” says Jake. “My uncle was a chef, and I grew up around family who worked in restaurants and cafes.” He learnt from a young age, that

it pays to find your passion, and pursue it - and for Jake, that passion was coffee. But what he boasted in passion, he lacked in age and experience. “I was only 22 when I set up Haymarket,” says Jake, “And I was going into the banks, only for them to look at me like - ‘You’ve got no hope, mate’ - I was way too risky!” But Silver Chef looked at Jake differently. He had already at that point spent five years working in the coffee industry, had worked for two major coffee houses, and had a business degree. His positive merits outweighed the dangers associated with his first-time-businessowner status. According to Jake, Silver Chef just ‘got it’, and has been looking after him since day one, establishing a strong business relationship that continues almost five years later, and beyond. “For younger people starting up small business,” explains Jake, “there is not as much capital or business history as someone older. Trying to buy all your equipment straight up is a daunting task, not to mention one that will put you in a huge amount of debt. Silver

Things “ change, you might

want to upgrade, it won’t always stay the same. Silver Chef know what you need.

Chef caps your payments as well, so there’s no surprises, and a real safety net for your business.” The first year of business for Knight’s Coffee & Tea was successful, but not without its challenges. Jake calls it his ‘big learning curve’, and is still surprised at how different the end result was from his original expectations. “It was so great having that stability, like at the end of 12 months, being able to ask did we actually need that small piece of equipment? No? Let’s give it back.” At not even 30, Jake Knight knows how it feels to open a business as a young person. He said one of his biggest challenges was overcoming

the common perception of the big banks being the ‘trusted’ option. The big lending organisations, as Jake points out, are working across multiple industries, and do not have a focus on hospitality alone.

Jake cut his teeth “ learning about not

just the tastes, but the origins of the beans. “People have a fear about not going with the big banks. They have a fear with the smaller companies that there will be something nasty in the contract. But Silver Chef really gets the idea”, says Jake. “Things change, you might want to upgrade, it won’t always stay the same. Silver Chef know what you need.” Having survived the tough world of small business from a young age, Jake is extremely encouraging to others who might be considering doing the same.

With a caveat, of course - “It’s 24 hours a day, 7 days a week!” Jake warns with a laugh. “I was always tied to the performance of the business. When it did well, I was elated - when it did badly, I would be shattered. I think the mood swings were tougher on my girlfriend than anyone else!” With a clear passion for what he does, and the flexibility of Silver Chef acting as his business partner-in-crime, we look forward to Knights Coffee & Tea number three opening soon with that same promise - sublime, every time. KNIGHT’S COFFEE & TEA (02) 9280 0039 Shop 5 827–839 George St, Haymarket NSW 2007 knightscoffeeandtea.com

KNIGH T’S COFFEE & TEA

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Pick your audience.

...

THE POWER OF TWO

How creative collaborations can give you an edge

Consider who it is you are hoping to capture with your collaboration. Are you a suburban family restaurant looking for weekend visitors? Are you an inner-city cocktail bar, trying to snag the mid-week drinkers? Whilst it is great to try and source new audiences, there is something to be said for growing your primary target, too. Explore your brand.

Take the time to clarify your value offering. What makes your restaurant, bar, cafe, or coffee shop unique? For some, it might be a scenic location, for others, access to amazing fresh produce. Find your top selling point, and look to amplify it to the public. Find a partner.

Brand collaborations have been around for centuries.

cook on board and now we cook using fresh produce,” he said. “We literally cook and blanch mid flight and don’t simply reheat like other airlines.”

As long as there was a celebrity face or recognisable label in the spotlight, companies have scrambled to leverage their fame to their own advantage. From as far back as the 1760s, Josiah Wedgwood was using royal endorsement to promote his eponymous brand of fine china.

For Qantas, they were able to tackle one of the major taboos of flying that didn’t sit with their luxe brand status: the food. Airline food always had a terrible reputation, but by bringing on a well known face, Qantas were able to boast a point of difference above other airline carriers, whilst Neil Perry was able to keep his restaurant and brand in the focus of the high-net-worth demographic who flew Qantas (particularly first class) and would invariably be his target audience.

The hospitality industry has long learnt the value in cross-brand collaboration. Food trends will come and go, and restaurants, food and beverage brands must constantly find a way to remain top of mind for their customer. And, in a congested market of media, advertising, and local activations; there is no better way to be seen than to pair up with a famous face. From the wildly successful Qantas/Rockpool partnership, to Doughnut Time franchise placement within Topshop stores; Australia is leading the pack with innovative collaborations. But, as a small business, how can you replicate this type of success on a smaller scale? And why is it so important in the modern climate to do so? Australia has always championed our array of amazing chefs and venues. But even they need a hand to stay high in the ranks of industry leaders. Neil Perry and his esteemed Sydney restaurant Rockpool (now permanently closed), teamed up with Qantas way back in 1997, when he began consulting on their airline menu. At the time, Neil commented that Qantas and Rockpool had changed the in-flight experience. “We have altered the way we

Hitting a larger mass market is the Doughnut Time and Topshop collaborations around Australia. With 20 stores nationally, Doughnut Time has teamed up with Topshop to set up outlets in their Brisbane CBD, Sydney CBD, Miranda, Bondi Junction, and Melbourne Emporium stores. Capturing a younger audience of 15 to 30-year-olds, Doughnut Time has leveraged the youthful, trendy, fun, and playful nature of Topshop, whilst taking advantage of their high-quantity foot traffic. For Topshop, they were able to offer an added layer to their shopping experience with the doughnut food trend that has experienced significant attention in Australia since Krispy Kreme arrived in Australia in 2014. The mutually beneficial arrangement of marrying two brands together in a collaboration is not exclusive to large multinationals, or high-end restaurateurs. Here’s how you can make it work for your business.

Collaborations do not have to remain local. Depending on whether you are looking to align with a person, a brand, a charity, or another business; don’t be afraid to approach those who are interstate or even overseas. Think outside the square, and cross over your food and beverage offering with a completely different industry altogether, such as fashion, the arts, celebrities, media, brands, or charities. Measure twice , cut once.

A collaboration can bring extraordinary benefits to your business, but if misjudged, can also serve to damage the reputation of your business. Make sure you choose carefully, and have clearly negotiated terms so that both parties contribute equally to publicity, infrastructure, and other maintenance of the project. I nvest in publicity.

If a tree falls in a forest and no one is around to hear it, does it make a sound? Similarly, you can execute a fabulous collaboration, but if you don’t publicise it - what use has it served? Excellent reach across all channels can be reached with just a small amount of paid boost on social media: for less that $100, you can look to be reaching an additional 600-800 people on your Facebook page.

The hospitality sector is a great place to be collaborating. Consider what is it you, as a business owner, provide: food, beverages, a place to rest, and a place to socialise. The cross-channel space is emerging as the hot new thing in 201617, such as inner-city cafes sharing their space with an up-and-coming fashion label; or local restaurants hosting Sydney Writer’s Festival events. Celebrity chef Kylie Kwong of Billy Kwong in Sydney recognises the trend of collaboration. When asked about her trend forecast for the year ahead, Kwong said, “I think the C word has to mean ‘collaboration’!”

Tourism Australia agrees. “Whether it’s fuelled by social media, or chefs and restaurateurs simply becoming more available to their diners, it means music labels are suddenly joining forces with restaurants, creating mini-festivals in abandoned rail yards. There’s definitely a cross-platform sense of community in major Australian cities where there’s a real attraction between like-minded people, they said on their official website recently. “Whole suburbs are being taken over for street parties sponsored by craft beer companies, incorporating local restaurants and bands big and small. Eating in Australia is now, more than ever, about the mini-community that pops up around us.” A spectacular example of creative collaborations came at this year’s Vivid Festival in Sydney. The ‘Sydney Table Series’ was held in the iconic Carriageworks

Big or small, a “collaboration will

breathe new life into your brand.

building, and paired a celebrity chef with a performing or visual artist. “I wanted to bring the best of food and art together in one room,” says chef and Carriageworks creative director Mike McEnearney, who helped put together the line-up. “It’s like eating in the green room with your favourite chef or creative.” From florists to choreographers, photographers to dancers, the events effortlessly married together two complementary experiences: great food, and beautiful art. The first duo in the series was ‘Acme’ chef Mitch Orr in collaboration with dancer and choreographer Amrita Hepi. With the luxury chefs drawing the traditional, high-end crowd, the local artists on show worked to attract the younger ‘movers and shakers’. It was an exceptionally successful showcase of both culinary and artistic talent. Big or small, a collaboration will breathe new life into your brand, welcoming in more customers from your target demographic, or even further afield. It connects your community - in both the physical/literal sense, but also your extended online and industry community. Get creative and start building up your collaborative network! CAPITAL INVESTORS

CH 4 > THE SURVEY

The

SURVEY

It doesn’t matter how well you think you know an industry, you will always be surprised. In fact, the only authentic learnings and insights can come from big data. That’s why, every year, Silver Chef surveys more than 200 Australian hospitality business owners, partners and franchisees to best understand the trends and sentiments of the industry. From restaurants to cafes, pubs to clubs, takeaways and even our coffee roasters; we asked the hard questions - how did you go last year?

How do you think you’ll go next year? What were your biggest successes, and your most meaningful mistakes? Using their responses, we’ve been able to paint the most accurate picture we can about hospitality in the year been, and for the year ahead. We think you’ll be just as surprised by the results as we were.

CH 4 > THE SURVEY

...

RESTAURANTS

CAFES

44%

29%

17%

P E R F O R M A N CE

H E A LT HIE R B U T E X P E N S I V E

44% BET TER THAN L AST YEAR 17 % W O R S E T H A N L A S T Y E A R

67% IN T RODUCED HE A LT HIER MENU OP TIONS 53% REPORTED HIGHER PRODUCE COSTS

CO S T A B S O R P T IO N TA K IN G A T O L L 25% DON’T PASS ON INCRE ASES TO CUS TOMERS 42% A RE REDUCING PORTION SIZES 42% ARE USING CHE APER INGREDIENT S

W E L CO M E N E W BIE S

A FE W CLOSE CALL S

O P T IMI S T IC F O R T H E F U T U R E

29 % A RE BR A ND NE W & H AV E BEEN OPEN LESS THAN A YEAR

46% SAID CASH FLOW M A N AGEMEN T WAS A CH A L L ENGE

58% ARE E XPECTING BIGGER PROFIT M ARGINS NE X T Y E A R

47%

26% 25%

W O R K ING L O N G E R H O U RS

W O R RIE D A B O U T C O M P E T I T IO N

O P P O R T U NI T Y IN CO F F E E

50% COMMIT TED TO WORKING LONGER T O REDUCE S TA FF WAGE S

19 % O P E N L E S S T H A N 12 M O N T H S 42% WORRIED YOU’LL GO BUST

6 1% O F F E R O N E T Y P E O F C O F F E E (SINGLE ORIGIN OR BLEND)

S T E A D Y P R O DUCE CO S T S

S TA F F A N D P U B L ICI T Y # 1

S T R O N G P E R F O R M A N CE

49 % S AID PRODUCE COS T S H AV E REMAINED CONSISTENT

26% WILL BE INVESTING IN MARK ETING 25% WILL BE INVESTING IN S TAFF AND TR AINING NE X T YEAR

47% PERFORME D BE T T ER T H A N L A S T Y E A R O N LY 4 % A D M I T T E D T O D O I N G W O R S E

B iggest Opportunities for F Y 1 7 : B iggest A nticipated C hallenges for FY 1 7 : 1

Cash flow

Competition

Patronage loyalty and repeat business

Increased costs - food, premise leases, electricity, gas, etc.

Marketing

+ There is a huge opportunity to leverage off the ever-expanding coffee trend. Check out The Changing Face of Coffee Culture article on p. 27 and How You Can Profit From Offering Your Customers Multiple Roasts article on p. 59 for more information on what you need to know, and how you can leverage this in your business. + Pass on cost increases to customers. As long as you communicate clearly why the prices have increased, it is something customers learn to accept from time to time. This will also help to alleviate the tension on the rising produce costs. + Allocate time to working on your business not in your business - even if you just start with an hour a week. If you’re not sure where to start, simply implement some of the tips that you read here in this report, such as How to Keep Your Costs Low, And Your Profit High, interview on p. 65 with long-time hospitality consultant and cafe owner Stefan Blee, and Has It Always Been This Hard to Find Good Staff? on p. 61 with specialist hospitality recruiter Geremy Glew, and Ken Burgin, founder of leading hospitality resource Profitable Hospitality, which has training, practical advice and easy-to-use templates. Alternatively, you could look to hire a hospitality consultant for your business.

Biggest Opportunities for FY17: Biggest Anticipated Challenges for FY17: 1

Cash flow

Competition

Sourcing quality, reliable staff

Increasing customer repeat patronage

Keeping up with emerging trends

+ Cash flow issues can be eased with a little help from capital investors. You can find out more about how to attract this kind of investment in our article on p. 57, Why Capital Investors Should Be On Your Radar. + Competition is fierce, so make sure you spend time working on your business not in your business - even an hour a week. Why not use this time to work on your online business, such as social media updates and customer communications? We cover this and more in our article on p. 71, Managing the Online Space in Small Business. + As a cafe, you have the freedom to move with the major food trends sweeping the nation - monster milkshakes are a great example! Check out the Major Trends feature on p. 13 and the real life case studies of other successful people in the industry.

DATA & INSIGH T S

CH 4 > THE SURVEY

...

FAST FOOD & TAKEAWAY

PUBS, BARS & HOTELS 30%

38%

48%

40%

10% 60%

60%

S T E A D Y P E R F O R M A N CE

O P P O R T U NI T Y IN DI S CO U N T S

H E A LT HIE R FA S T F O O D N AT IO N

UP AND UP

P O K IE S A R E N ’ T Y O U R L IF E B L O O D

A COUNTRY GAME

33% PERFORMED BET TER THAN L AST YEAR 33% PERFORMED MORE OR LESS THE SAME

3 8 % D O N O T R E LY O N D I S C O U N T S OR SPECIA L S

4 8% H AV E COMMIT T ED T O HE A LT HIER OP TIONS THIS YEAR

60% PERFORMED BET TER THAN LAST YEAR 40% PERFORMED ABOUT THE SAME NO ONE DID WORSE!

M A JORI T Y SEE T HE VA L UE IN DI V ERSIF Y ING 60 % DON’ T E V EN H AV E M ACHINE S

60% ARE LOCATED IN REGIONA L CENTRES 30% IN SUBURBS 10 % I N C I T Y C E N T R E S

29%

61%

38%

86%

<$500K

T H E E N D O F T H E CH A IN

L O W CO S T, L O W P R O F I T

86% ARE S TAND-ALONE, SINGLE V ENUE BUSINES SES

62% ARE E ARNING UNDER $ 500K – THE LOWES T E ARNING T YPE BEHIND CAFES

FEEL GOOD FUTURE

C O M F Y PA S S ING ON CO S T S

O V E R DR A F T L A S T Y E A R

OLD HANDS

29% PREDICTING BIGGER PROFIT S 38% E XPECTING ABOUT THE SAME

35% PASS ON ALL PURCHASE COS T INCRE ASES TO CUSTOMERS

45% ADMIT TED TO GOING INTO OV ERDR A F T T O S TAY A F L OAT

6 1% H A V E B E E N A R O U N D F O R 4 + Y E A R S

B iggest Opportunities for F Y 1 7 : B iggest A nticipated C hallenges for FY 1 7 : 1

Cash flow

Staffing

Marketing

Improving turnaround time of orders

Increasing social media promotions and sales

+ Why not team up with local events such as food markets and school fetes to sell your food? You could cater for meetings, or even offer local businesses lunchtime offers. FInd about more about these kind of partnerships in our article on p. 33, The Power of Two: How creative collaborations can give you an edge. + People eat with their eyes, and nothing looks better than delicious burgers and pizza. Make the most of your online marketing by getting some stomachs rumbling with great food photography. For tips on how to take a great food photo, check out our interview on p. 19 with Australian food photographer Rob Palmer in Rob Palmer - Food Photographer. + What people are looking for in fast food is changing: be the first in your area to surprise and delight your customers with new technology, faster turnarounds, and fresher ingredients. Our interview with New York Slice CEO Todd McGregor on p. 75 talks fast food trends in our article A Slice of Advice With New York Slice CEO Todd McGregor.

Biggest Opportunities for FY17: Biggest Anticipated Challenges for FY17: 1

Cash flow

+ Australian pubs are gaining a great reputation for hearty, gourmet tucker. Keep up with trends and think about identifying those that could be incorporated into your business, such as craft beers, or gourmet burgers.

Maintaining a competitive point of difference in the market

+ Fermented food such as sauerkraut or kombucha fit really nicely in with a gastro-pub menu - read more about how they can boost your sales in our article on p. 25, The Fermentation Fad Hits Aussie Shores In a Big Way.

Finding quality staff

Competition

+ Make marketing a priority. Know who your audience is, know what will pique their interest, and then tell them what is new or what you offer.

Updating and improving the kitchen

+ Start to pay attention to your produce costs to improve your cash flow. We run through some simple ways to reduce your overheads and costs in our article on p. 65, Keep Your Costs Low, and Your Profit High.

DATA & INSIGH T S

CH 4 > THE SURVEY

...

COFFEE ROASTERS

CLUBS 50%

62%

$2M

77% 17%

THE BOOM SECTOR

CU S T O M E R B A S E B R E A K DO W N

F LY IN G S OL O

R O O M F O R I M P R O VE M E N T

G A M IN G S T IL L IM P O R TA N T

HIGHE S T B U S I N E S S P R O F I T S

62% PERFORMED BET TER THAN L AST YEAR

64% ARE INDEPENDENT CAFES 50% ARE CATERERS 43% ARE RES TAURANT S

77% OWN AND OPER ATE A SINGLE LOCATION ROASTER

50% PERFORMED ABOUT THE SAME AS L AST YEAR U N F O R T U N A T E LY 17 % P E R F O R M E D W O R S E

24% ARE ‘VERY RELIANT’ ON GAMING 12 % A R E ‘ E X T R E M E LY R E L I A N T ’ ON GAMING

72% REPORTED AN INCOME OF $2M OR MORE THIS YEAR

17%

46%

38%

$500K – $2M HIGH P R O F I T 46% EARNED BET WEEN $500K - $2M LAST YEAR

GR O W ING S TA F F R E Q UIR E M E N T S

CO F F E E VA R IE T Y I S K E Y

38% A N TICIPAT E MORE S TA FF NEEDED FOR YEAR AHEAD F U R T H E R 15 % P L A N O N W O R K I N G L ONGER HOURS T HEMSE LV E S

62% OFFER FIVE OR MORE T YPES OF COFFEE

26% C O O L , C A L M A N D CO L L E C T E D

L A C K ING CONFID E N CE

CO F F E E I S C A L L IN G

72% REPORTED EASY CASH FLOW MANAGEMENT

17 % A R E U N S U R E O F F U T U R E PROFIT PERFORMANCE 6% E V EN PREDICTING IT MIGHT REDUCE

26% DON’T EVEN OFFER COFFEE! A MISSED OPPORTUNIT Y FOR CLUBS

B iggest Opportunities for F Y 1 7 : B iggest A nticipated C hallenges for FY 1 7 : 1

Cash flow

Managing steep business growth

Breaking into established markets

Strong competition

Marketing

+ Importance of increasing consumer awareness and understanding of the supply chain and the value farmers are getting back. Look to shift where you source your coffee to places that guarantee more income back to the farmers. Read more about it in our article on p. 27, The Changing Face of Coffee Culture. + Managing steep business growth can be eased by pairing up with another business to share the costs. Why not team up with a local coffee shop, fashion boutique, or other business to stock and serve your coffee? We break down how to work at collaborations in our article on p. 33, The Power of Two: How creative collaborations can give you an edge. + Good marketing is everything when it comes to business, particularly in the trendy coffee space. Who are you reaching out to with your online audience? Can you target commercial partnerships by creating meaningful connections via social media? Read our article on p. 71, Managing the Online Space in Small Business.

Biggest Opportunities for FY17: Biggest Anticipated Challenges for FY17: 1

Being able to keep pace with increased costs

Competition

Increasing sales through targeted items, price points, and upsell or add-ons

Opening a new restaurant

Retention of memberships

+ Coffee is a major opportunity many of you are missing out on. From morning coffees on the way to work, to weekend brunch and Sunday morning coffee runs, it’s a great Trojan Horse to bring in fresh life to what is a traditionally older venue. + In saying that, clubs and pubs often have amazing locations, and a simple refurbishment will stir enough interest in your local community to put you on the map. + How else can you use your space? From local markets to work functions, think outside the box when it comes to making use of your club space in quiet periods such as winter.

DATA & INSIGH T S

CH 4 > THE SURVEY

THE DATA HAS SPOKEN

Are you passing your increasing costs onto your customers? RE S TA URA NT S CA F E S

6% 12% 10% 35% 23% 14% 11%

ALL OF I T

FA S T F OOD/TA K E AWAY PUBS /BA RS /HOT E L S COF F E E ROA S T E RS OT HE R (IE F OOD T RUC KS)

3% 7% 5%

NEVER OCCURED TO ME NONE OF I T

25% 13% 29% 15% 10% 17%

SOME OF I T

69%

AVERAGE ACROSS ALL SEC T O R S

CL UBS

HOW DID YOU GO MANAGING CASH FLOW LAST YEAR? 31%

34%

52%

WHAT ARE YOUR TACTICS TO BOOST PROFITS?

20% 15% 29%

C onstant j uggling act 17% 16% 24% 15%

31%

24%

MARKETI NG TO ATTRACT MORE CUSTOMERS

82%

AVERAGE ACROS S AL L SEC T O R S 22% 41% 43%

72%

WA S N ’T D I F F I C U LT AT AL L

58% 25% 46%

24% 20% 54%

50% 8% 43% 39%

I NCREASE PRI CES 33% 17%

F E W C LO S E C A L L S

46% 33% 60%

54%

33% 61%

PROMOTE HI GHER MARGI N I TEMS/ UPSELL 67%

53%

43%

40%

31% 29% 56%

PROMOTE ADD- ON I TEMS 28% 4% 45% 14% 6% OFFER LESS, OR DI SCONTI NUE, DI SCOUNTS

W E N T I N TO O V ER D R AF T

11% 1% 10% 15% 23% 10% 6% 22% 18% 24% 25% 23% 19% 17%

I NTRODUCE A LOYALTY PROGRAM

HOW DO YOU THINK YOU’RE GOING TO GO NEXT YEAR?

HOW MUCH MONEY DID YOU EARN LAST YEAR?

58% 6% 3% 10% 5% 31%

O P E R ATI N G < 1 YE A R 19%

49%

62%

20% 31%

29% 65%

58%

46%

24% 45%

46%

39%

6% 28% NOT SURE

17% 3% 5% 30% 23%

62%

19% 32% 38% 30% 8% 29% 39%

THE SAME

$ 5 0 0 K to $ 2 MIL L IO N

67%

63%

UNDER $500K

O V E R $ 2 M I LLI O N

50%

BI GGER

11% 12% 24% 5% 8% 10% 17%

72% SMALLER

11% 6% 10% 17% 6%

DATA & INSIGH T S

CH 4 > THE SURVEY

the

...

KEY

FINDING

INDINGS

ONE

The cafe and coffee culture isn’t just growing, it’s changing, too.

It’s no secret that the coffee sector is the golden child of the hospitality industry of late. Riding a worldwide coffee boom, independent cafes and coffee shops are enjoying their time in the sun, attracting massive - and loyal - urban audiences with their trend-driven concepts and flexibility of locations. But rather than resting on their laurels, coffee shop owners are instead choosing to grow and innovate. A key to success is having the right equipment in your venue - equipment that will keep up with customer demand, is easy for your staff to use and clean, is reliable so you avoid breakdowns and downtime, and improves efficiencies in your operation. The innovation is tangible, with coffee shops and cafes wholeheartedly embracing the latest in consumer technology as well. More than 1 in 4 (26%) of owners noted they will aim to reinvest mostly into their POS system and other technology solutions this coming year. The majority of cafe owners have also invested in new equipment, with many investing recently in the last six months. In fact, only 16% had not invested in new equipment in the past year. The majority of coffee shops (58%) also noted that their website is mobile responsive, and 3 out of 4 (76%) considering social media platforms to be ‘extremely important’.

The increasingly co-dependant relationship between coffee shop owners and coffee roasters is also becoming apparent. Almost half (43%) of cafes have been loaned a free coffee machine from their roaster as part of a package when they purchase the beans. Similarly, nearly two thirds (64%) of roasters noted that the majority of their clientele are independent cafes or coffee shops, followed by caterers at 50% and restaurants at 43%. Many cafes and other venues are moving away from single coffee offerings, and incorporating other specialised beans; for example, one for milky coffee, one for black coffee, and one as an invitational boutique roast. This really strengthens the ties between cafe and roaster. The conscience of cafe owners and coffee roasters is shifting as well, with an increasing amount of owners now actively looking into, and sharing the details of, the coffee’s origin and supply journey. Almost half (43%) of cafe owners believe that interest in this area is growing, and it is ‘becoming a significant trend in the industry’. Nearly two thirds (62%) of coffee roasters believe that sharing the story of the coffee origin makes a real impact, with their customers really caring about where their coffee comes from, and the story helps them feel connected. Given increased awareness of the (often corrupt) supply chain with coffee growers, cafe owners are starting to contemplate raising their prices, with more than 1 in 5 (22%) noting their customers ‘wouldn’t even blink’ at a price hike, and a further 47% saying they ‘would definitely consider it’.

KEY FIND ING S

CH 4 > THE SURVEY

...

FINDING

TWO

THREE

Costs are increasing, but restaurants are reluctant to pass onto customers.

Social Media is being underused.

Staffing and cost of goods are the two biggest cost centres of a hospitality business, and for restaurants, the last 12 months have proved interesting. There is no doubt that produce costs have increased for restaurants. More than half (53%) of our restaurants surveyed noted a dramatic increase over the past 12 months. In terms of staffing, more than half (56%) of all restaurateurs surveyed employ 10 or more staff. In addition, the minimum wage has increased, and nearly half (43%) of all restaurants surveyed have spent more in wages in the last 12 months than previous years. Furthermore, sourcing quality staff is proving to be challenging across the board, with the widespread skills shortage in full swing. In addition, rental costs are rising, and cafes and fast food/ takeaway businesses are claiming larger and larger stakes of the ‘casual dining’ market. So, fair to say costs are rising, with fewer customers visiting restaurants than ever before. So why are the meal prices staying the same, and why are the wages increasing? Surprisingly, 1 in 4 (25%) of you said you pass on nothing when it comes to increasing costs - meaning you absorb the entirety of inflation and fluctuating produce and staff costs. That’s enormous!

However, the majority (66%) said that you would only pass on some of the costs.

Why is this so? Well, the main sentiment in the restaurant community is that it is becoming congested with competition, which is likely to be discouraging owners from increasing prices and potentially driving away customers. Nearly half (42%) felt that there were too many competitors, and some of you would be likely to go under as a result. Absorbing the costs of your increasing overheads has manifested itself in several ways:

After reviewing the survey results, it was surprising to note that a significant portion are letting social media take a backseat to other priorities. Across all sectors - restaurants, cafes, takeaway, coffee roasters, clubs, and pubs, bars and hotels - there were a slice of businesses who said they would only ‘occasionally jump in and have a look’, even though they realised it was important. Here are the worst offenders who admitted they only occasionally use their social media accounts for business:

69%

42%

42% 11%

CHE A PE R PRODUCT S & INGRE DIE NT S

RE DUCING PORT ION S IZ E S

T RY ING T O RE DU CE WA S T E

And whilst reducing waste (and therefore your carbon footprint!) is definitely an admirable exercise, the question remains: with smaller meal sizes, that are using cheaper ingredients...wouldn’t your customers just prefer to pay a little bit more? It starts with good communication for your customers as to why your prices are increasing.

31%

38%

33%

11%

18%

RESTAURANTS, COFFEE ROASTERS, TAKEAWAY, PUBS/ BARS/ HOTELS, CLUBS, CAFES

It is a massive miss for fast food and takeaway businesses, particularly since many people are now using mobile apps or websites for online ordering. Deliveroo and Menulog are two ordering sites that use online marketing on social media channels to great success - you could also be catching this traffic with your own social media content. Using targeted marketing through social media posts, you can even target your local area on specific nights - such as Sunday evening, when takeaway and fast food consumption

peaks. And using image sharing platforms like Instagram is an easy way to snag new customers with engaging imagery. For those who are still not convinced, here are some key facts you might want to know about social media in our modern business marketplace: + There are nine million Australians logging into Facebook every single day.1 + That’s 79% of our nation online, every day.2 + The average consumer mentions brands 90 times/week with family, friends and co-workers. + There are 5 million images uploaded to Instagram every day. + 49% of Australians are visiting their social media pages every day.3 + 24% of Australians say they use social media to ‘follow or find out about particular brands or businesses in general’.4 Whether you choose to personally engage in social media as a form of social interaction, there is no doubting the fact that it is crucial for a business. It enables a direct connection with your customer, and the ability to remain top of mind as they spend their leisure time interacting on social media. It’s an easy sell.

So, is social media applicable for all hospitality businesses? Absolutely. Social media has a universal appeal, and has proven itself time and again to loop together brands with audiences. The key is to keep your content short, regular, consistent, and targeted. As a hospitality business, the top content types to focus on with your social media are the following: 1 Menu options & imagery 2 Customer feedback channels 3 Promotions 4 Online ordering & contact information

1 http://www.abc.net.au/news/2014-02-04/facebook-turns-10:-the-social-network-in-numbers/5237128 2 https://www.sensis.com.au/assets/PDFdirectory/Sensis_Social_Media_Report_2015.pdf 3 https://www.sensis.com.au/assets/PDFdirectory/Sensis_Social_Media_Report_2015.pdf 4 https://www.sensis.com.au/assets/PDFdirectory/Sensis_Social_Media_Report_2015.pdf

KEY FIND ING S

CH 5 > REAL ADVICE

ADVICE

Real

When it comes to running a small business, your hands are always full. And when it comes to running a small business in the hospitality trade - well, your hands are overflowing! The food and beverage industry requires constant attention. Even during the quiet times, there is produce to be ordered, rosters to be drawn, bills to be paid needless to say, working ‘in’ your business often takes precedence over working ‘on’ your business. That’s why we’ve dedicated a whole chapter of this year’s HISI Report to providing you with real advice. Practical tips from the experts who can offer up-to-theminute information about what you can be doing to grow your business.

We’ve looked at major trends in the industry such as food photography, and variation in your coffee roasters; as well as tracking major shifts currently underway such as the skills shortage and changes to the TAFE hospitality programs. All contributors to this section are at the top of their field: we’re proud to include interviews with Geremy Glew of Placed Hospitality Recruitment, chef and management consultant Stefan Blee, Ken Burgin of Profitable Hospitality, and many more. Good advice is hard to come by, so we’ve worked our hardest to curate a selection of informative and useful tips to help your business flourish in 2017 and beyond.

CH 5 > REAL ADVICE

“When we were setting up this restaurant, I wanted to put in some good ovens,” he remembers. “Funnily enough, it was the person I was purchasing the ovens off suggested we go through Silver Chef.”

OWNER DON CAMERON

DISHES

So, for the first time in his four-decade career as a restaurateur, Don rejected the traditional lending process in favour for a newer, and more progressive solution with Silver Chef. “This is the best way, a lot of restaurants do it,” Don was told by the seller. Don reviewed the whole process, and thought: “Yep, this is a good thing to do.”

the

IRT ON HIS FIFTH TASSIE VENUE

‘MUD BAR’

Donald ‘Don’ Cameron was always ahead of his time with his signature Asian Fusion style cooking. 43 years ago, he started out in hospitality as an apprentice chef, setting his goal to own his first restaurant before he was 30. He sailed through that goal, opening one of the two restaurants in his hometown of St Helens, Tasmania, at the age of just 26.

Don went beyond renting just the combi oven and slow top oven; he ended up fitting out Mud Bar with a POS system, glasswasher, and reverse osmosis unit, too. With five restaurants under his belt, Don knew that a fast and easy setup was crucial to getting the new venue off the ground. “Silver Chef gave me the flexibility to do what I needed to do: to get the equipment in, and get it going. This whole process was quick, and efficient,” says Don. His years of experience meant that he didn’t really need to take advantage of the ‘return’ option at the end of his rental

period - with 43 years in the game, he knew exactly what he wanted, and what the restaurant needed. “I’ve made sound purchases and always used them,” he says confidently. “That’s experience for you!” Whilst Don is humble about his experience, he knows exactly what it takes to make it - ‘the right spot, right product, right time, right people’ - and preaches caution to younger people looking to start a restaurant. “You do need to be careful when you’re setting up a restaurant,” he says. “Most people set up a restaurant with brand new equipment, and go a little bit crazy. I’m much more cautious. However, I think that Silver Chef is a fabulous way of getting the right equipment into the right position and into the kitchen producing food. It’s an easy set up.” Don’s canny eye for the right place, right food, right time mentality earnt him a spot in the 2016 Australian Financial Review Top 500 Restaurants in Australia, an enormous honour that places him alongside industry mega weights such as Peter Gilmore’s Bennelong, and Andrew McConnell’s Cumulus Inc.

So, from one of Australia’s most esteemed chefs, what is his advice from a career that spans almost 50 years?

Be a little bit “ cautious, do your

business plan really well .. invest really well, invest in good staff and good equipment. Best premises, in the right place.

And perhaps, as his 26-year-old self would tell you - set your goals high.

MUD BAR & RESTAURANT (03) 6334 5066 28 Seaport Blvc, Launceston TAS 7250 mudbarandrestaurant.com

As he says with a grin: “Here we are 40-odd years later, and I’m still going strong.” In the decades since, Don has gone from strength to strength in the industry, opening his fifth restaurant, Mud Bar & Restaurant almost 15 years ago. The menu is his call card - a blend of Australian-Asian fusion, and a true institution in busy Launceston. His innovative blend of robust Tassie flavours - fresh seafood, colourful charcuterie, and delicate Asian elements were well ahead of the recent fusion trend that’s swept the mainland. Don mentions that it’s a cuisine that probably wouldn’t work anywhere else in the world, given most other nations have a very definite national menu. Not Australia, where our multicultural heritage has given way to a remarkable blend of cultural flavours. “Australians have a strange palette, and we’re lucky to have an audience who appreciate it,” says Don. “Our menu was a success from the start - even in Tasmania! - it did well from day one.” But, like any restaurant owner, Don has grown and evolved his menu over the years, and his equipment requirements changed too. For Mud Bar & Restaurant, he decided he needed a kitchen with larger and more powerful ovens that his previous venue.

Silver Chef gave me “ the flexibility to do what

I needed to do: to get the equipment in, and get it going. This whole process was quick, and efficient.

MUD BAR

CH 5 > REAL ADVICE

A 21st CENTURY ADDICTION ...

FOOD BLOGGING

Imagine trying to explain to someone ten years ago that it was perfectly normal to snap a photo of your food prior to eating? And then sharing that photo with thousands of people? They would think you are mad. But, in 2016/17, this is the standard behaviour when eating out. Millennials love food, and the better it looks, the more popular it is. Our newfound passion for food - and eating in general - has even given rise to a whole new profession: food blogging. Once upon a time, there were food critics. Highly trained with decades of experience, food critics were heralded as the unequivocal judge of fine dining. Their reviews in newspapers and industry publications could sink a restaurant overnight. You might say, therefore, food bloggers are the modern incarnation of food critics. As with the critics, bloggers hold great sway over their audiences; but unlike the critics, these bloggers are often amateur foodies. It’s a fun, playful, visual space, and one that is influenced greatly by local and international trends and social media networking. So, as a small business, how can you leverage the food blogging space? And why are they helpful to the hospitality industry?

Food is the fad of the decade. There are more food blogs than sport blogs, fashion blogs, travel blogs, or celebrity/music blogs. At last count, blog indexer Technorati counted 20,000 food blogs in Australia. And of these, over half had monthly readerships of 10,000 or more. That’s a lot of people reading their reviews. Elevate Research noted that “...food bloggers have proven to be more influential than traditional food critics, as their views are more in line with the average consumer.”1 It is therefore crucial, as a business owner, to familiarise yourself with local food bloggers, and treat them with the same welcome treatment as you would a published food critic. It is also important to be aware that is it more than just the taste of your food being judged. As it is a congested market of food bloggers, they are always looking for innovative or ‘hidden secret’ venues to feature and leverage their reputation as a trend influencer. T hey will be looking for:

+ Ethically sourced ingredients + Interesting venue location/ design + Celebrity chefs or management + Interesting brand story + Innovative menu But don’t wait for a PR agency or the blogger to contact you seek them out yourself!

“Restaurant owners may have more luck forming these relationships on their own by connecting directly with local bloggers who eat at their restaurant,” says Joe Stanton for Elevate Research. “Bloggers are especially open to speaking with restaurants that favour their ethos, meaning a blogger who promotes locally sourced food will probably be more likely to praise a local restaurant that acquires food from a local farmer’s market.”2 Danielle Bruce is a food blogger based in Melbourne, Australia, and writes for Eat My Street. A part-time psychologist, part-time food blogger, Danielle has always been interested in the relationship between people and their food. Her blog therefore considers more than just a dish: it’s the venue, the vibe, and the interaction she has with the staff. “I first started my blog after I moved house and found myself living in a new and different area in Melbourne,” says Danielle. “Exploring and discovering new restaurants, cafes and markets was a great way to understand and connect with my new community and with the area around me.” Like many food bloggers, Danielle says that she loves taking photos of her food, and loves seeing other people’s photos of their food. “I think there is something intrinsically nurturing and comforting about food and in our busy and sometimes fractured society, seeing lovingly prepared food is very appealing,” she explains. “I also think that cafes and restaurants have become the modern day watering holes, the places that we all visit to meet-up, connect and talk.” In her time as a food blogger, Danielle has also noticed the prolific rise in the sheer number of bloggers. But with the larger pool, comes the push for originality and innovation, creating an exciting space for new foodies.

1 & 2 http://blog.elevateresearch.com/how-have-foodieblogs-affected-the-restaurant-industry

“One of the trends I have noticed recently is that everyone is doing it!” notes Danielle. “Food photography and restaurant reviewing is no longer in the hands of the select few, but everyone can now add their voice thanks to social media.” Social media, in fact, is the greatest key to attracting and impressing food bloggers, says Danielle. “I will travel to visit a restaurant or cafe based on their social media photos,” she says frankly. So what if a restaurant doesn’t have time to engage in high quality food photography? “If you do not have time to take beautiful photos of the lovely food you are preparing then ask someone else to do it!” she says. “Invite a local food blogger in and get them to take some shots of all the great things that they are able to see in your restaurant. I would also add that beautiful food photos are still only part of the story and great service and excellent food will always win out.” Great photography is crucial for businesses and bloggers alike. But how can you ensure visiting food bloggers will get the perfect snap?

media, in “fact,Social is the greatest

key to attracting and impressing food bloggers - I will travel to visit a restaurant or cafe based on their social media photos.

Create Instagram-worthy food, and serve it in an Instagram-worthy way, of course! For a small business, presentation is everything. Millennials are native to photo-sharing platforms such as Instagram or Snapchat, and can spot an aesthetically superior photo opportunity a mile away. Your task is simply to create a space that encourages that behaviour. Aliza Sokolow compiled a list of ‘9 Instagram-Worthy Food-Styling Tips From a Pro’ for My Domaine online. Here are a few that you can adopt in your business to attract local food bloggers.

FOOD BLOGGING

CH 5 > REAL ADVICE

Experiment with backgrounds.

“Experiment with a variety of backgrounds to see which colours and textures are best to showcase the dish, ingredient, or drink you are shooting,” says Aliza. “I’ll play around with marble, slate, or a wooden cutting board depending on the visual I’m trying to create.” For your business, why not try serving various dishes on different textures? Crisp potatoes with olive oil and rosemary look great on greaseproof paper, whilst hearty home-made sandwiches look great on a wooden board. Lots of light.

As with any photography, light is the most important part of shooting. If your venue is dark and moody, don’t expect bloggers to get snap happy. Provide areas of bright, natural light; and for after hours, sufficient above the table lighting. Show scale.

When serving a food blogger, make sure you include a variety of dish sizes and shapes. FIll their table with a couple of entrees, a few large mains, and some sides. Even if it is only breakfast, make sure you show different sizes to reflect the diversity of your menu. Tell a story.

As Aliza notes, each frame for a food blogger needs to really explore a narrative of the dish, the venue, and their experience. “Each image should tell a story,” she says. “Let’s talk a stack of pancakes! How can you make that stack more pleasing to the eye while telling a story? Syrup! Dripping photos of a yolk, sauce, or syrup beg for the double-tap.”

3 http://www.mydomainehome.com.au/foodphotography/slide17

Make sure you provide a blogger with the right ingredients, utensils, and background so they can create the perfect shot. Many businesses think being visited by a food blogger is a case of luck. But these foodies are not like the critics of old; they are young, opportunistic, and open to networking. Don’t be afraid to reach out and invite them into your venue. You have an editorial right to give them not only the right information about your brand story, but also to present them with the best food you can. For the cost of a meal, you could be buying yourself invaluable publicity. Once their review goes live, share the story across all of your social media channels. The world of food these days is all about networking - so get involved!

FOOD BLOGGING

CH 5 > REAL ADVICE

WHY CAPITAL INVESTORS NEED TO BE ON YOUR RADAR LEON KENNEDY

Leon Kennedy is a hospitality business owner and now the Operations Manager of Proud Mary coffee. Working his way up from cafe owner to Human Resources and Operations management, Leon is an industry expert and a solid mentor in guiding other small business owners how to find similar success. Speaking at the GROW Assembly in Melbourne earlier this year, Leon spoke to the audience about the importance behind business capital. A notoriously dry topic, business capital is often delegated to the bottom of the small business ‘To Do’ list. Expansion certainly seems hard to address when you’re working 7 days a week, juggling rosters, and trying to get coffee orders out on time!

business owners find it hard to work past phase three, disheartened by the fleeting rush of initial interest, and overwhelming weight of long hours, staff training, business costs, and fluctuating cash flow. But, just past the struggle lies what Leon has dubbed, ‘phase four: the promised land’. This is when your business finally (finally!) begins to balance, and you can step out of the day-to-day pace to observe new opportunities. Hospitality is unlike other industries. In our industry, a stable business whilst initially a great relief, is also a doubleedged sword. Safety means boring, and boring means customers and staff alike begin to look elsewhere. So, in order to remain interesting, you need to shake things up.

But as Leon explained, you must move beyond this frenetic stage of work before your business can settle, and therefore look forward to the future. He calls this “the lifecycle of a business”.

Phase five is expansion. For any small business owner who has done their time learning their company or brand inside out, they would have a ready answer to the question - ‘What would you do to expand?’

Phase one is ideation, phase two the start-up honeymoon stage, and phase three the struggle zone. Many small

For some, it would be larger or more productive kitchen equipment to turn out more food. For others, it could be

Business “ investors are just people who are really good at growing money.

gas heaters in the courtyard to keep the winter crowds. Whatever it is, it would only be possible with capital. For many of us, this capital is considered ‘extra money’ - the result of boosted profits that can therefore be used for growth. But as Leon identifies, only 2% of Australian hospitality businesses actually have that kind of line-out-thedoor, maxed out turnover. It is, quite simply, unrealistic. This injection of cash needed for expansion may therefore come from an external investor - an option that many hospitality business owners resent. But Leon sees it differently. “Most people think, I don’t want a business partner, I don’t want to have to sell equity. I worked so hard to get this, I don’t want to bring someone else in,” says Leon.

“But business investors don’t mean business suits, slicked back hair, and corporate takeover. Business investors are just people who are really good at growing money.” As he explains, investors would far rather invest their money in living, breathing businesses that ebb and flow with the economy - not leaving their money to devalue and depreciate in bank accounts. They are simply searching for an investment that is safe and secure - the rest is up to you. “They don’t want your business. They don’t want to be at your management meetings. They don’t want to help you plan your roster - they don’t even want a lot of day-to-day correspondence. All they are looking for is a return,” he says. For those willing to take on an external investor to grow their business, Leon has sage advice based directly off his own learnings: be transparent about your company, warts and all. After all, business capital is a risk for your investor. They need to know your problems and hurdles, before they can workshop how to overcome them.

In order to “ remain interesting,

you need to shake things up.

“Investors don’t make a decision based on your bottom line,” points out Leon, “they make a decision based on the potential of your business.” So, what’s your potential? When it comes to your fit-out, furnishing and equipment, Silver Chef is a prime investor to bring on board. We work to actively shift you from ‘stable’ to ‘growing’, and provide you with the right tools to do so, from resources and guides to help you take the next step, to funding your equipment needs.

Lifecycle of a business: 1. Identification 2. Honeymoon 3. Struggle Zone 4. The promiseD land 5. Expansion

CAPITAL INVESTORS

CH 3 > INSIDE SCOOP

HOW YOU CAN PROFIT FROM OFFERING YOUR CUSTOMERS MULTIPLE COFFEE ROASTS

“By offering multiple roasts, it helps you build your brand narrative and bring in an incremental new customer base,” Kieran says. However, as explained earlier it’s not just about appealing to coffee connoisseurs. “You can still be targeting people who have little coffee intelligence or regulars who are just looking for the consistency.”

How CAN BUSINESS OWNERS cater to everyone’s taste? “It’s very hard to roast a coffee that is good for both black and milk based drinks. So the bigger trend is offering three grinders; one for milk based coffee, one for black and one for invitational (guest roast),” Kieran explains. The breakdown of coffee in a café offering multiple roasts according to Kieran: 7 5 % of your customers will go for the milk - based coffees 2 0 % will go for black 5 % will be interested in the invitational roast

FOUR T YPES 1% FIVE OR MORE 4%

“You need to understand the risk-toreward ratio by asking yourself: what happens if it doesn’t work? Do I have a plan of attack for the unknown?” Kieran says the success and benefits of offering multiple roasts is reliant on it being engrained in your business and your staff. “Have a big whiteboard listing each roast you have on offer and flavour profile cards next to the grinders to encourage your staff to have the conversation with your customers,” he says. “Keep in mind that offering multiple roasts isn’t the magic bullet to being seen as a coffee specialist either. You need to provide the right mix of great service, and food and beverage as well.” PROJECT 41

How many types of coffee (including single origin and blend) do you offer in your café?

The customer walks into the second café and before they order, the barista questions whether the customer prefers white or black coffees and customises the roast to their taste preference. Which café do you think the customer will return to? The second café, as it offers a better value proposition.

T HREE T YPES 7%

A customer walks into two different cafés. The first barista takes their order for a flat white and that’s the end of the conversation.

There are two reasons why cafés are jumping on this trend; they are a coffee nerd or coffee connoisseur and want to try new things, or it’s to boost profits,” he says.

“For people looking into offering multiple roasts, you first need to look at the intent and what your motivation is. Why do you want to do it?” Kieran says that once you understand your motivation behind doing it, then you can look at how much you need to invest.

0% S4

WHY IS THIS A TREND?

Consider this scenario…

Kieran is treasurer of Australian Speciality Coffee Association, Coffee Channel Brand Manager for Silver Chef and owner of café Project 41.

What’s your advice for business owners getting started?

An important trend emerging is the move to multiple grinders offering experienced espresso coffee drinkers many exciting single origin coffees. However, it’s not only the coffee connoisseurs you need to target, as Kieran Westlake explains.

“To do this, you always need a roast that is a crowd pleaser and appeals to your coffee regulars,” he explains.

OUR survey found that 40% of all cafes now offer an additional roast to customers on top of their everyday coffee brand.

Do you fall into the ‘one’ or ‘two’ sectors of this chart? If you do, you’ve got an opportunity staring at you.

(07) 3216 1742 41 O’Connell Tce Bowen Hills Q 4006 p41.com.au

PROJECT 41

CH 5 > REAL ADVICE

Geremy Glew is the director of Placed Hospitality Recruitment in Sydney. He has seen, firsthand, the troubles the industry is facing. He believes that the ‘hard work’ image of the industry is to blame for dwindling numbers.

HAS IT ALWAYS BEEN

“Quite simply, it’s hard work and not enough people think that the physical effort and dedication required is worth the pay they get at the end of the week,” he says.

HIS HARD

TO FIND GOOD STAFF? ... Australia’s hospitality skills shortage, and how to keep good staff. There is a major threat to the Australian hospitality industry at the moment, and it’s a problem from within: a skills shortage. From young apprentices to experienced senior talent, the food and beverage industry is seeing its lowest numbers in years. Compare this with our skyrocketing population numbers, and higher dining numbers than ever before, and it’s been predicted that the hospitality industry will need an extra 123,000 workers by the year 2020 just to survive.1 It has, therefore, never been more important to source and hang onto great hospitality staff. But how did we get to this place? And how can we stop it happening again? We sat down and spoke with two industry experts to get their opinion on the skills shortage, and their tips on retaining your prized staff members. 1 http://www.hospitalitymagazine.com.au/food/news/industry-needs-123-000-moreworkers-by-2020-report

“... Inevitably it means that the reality of 50 to 55 hour week (including weekends and night work) is just not attracting the same percentage of a demographic that perhaps it once did.” With the younger generations better versed on working conditions than ever before, even the ‘high end’ hospitality sectors like hotels and restaurants are failing to attract staff. Geremy notes that even in the last five years they have seen a dramatic drop in numbers, with hoteliers using his recruitment services for the first time in his career. Geremy also looks to the recent TAFE cuts in the skills shortage. With the deregulation of the industry, he explains, there will be a boom in private hospitality colleges, with no regulation of quality or skills. “I think that when you deregulate any sector you see usually see a change in focus,” he says. “From focus on output and commercial viability, to a stronger focus on maximum commercial viability - this often correlates with reduced quality output.” Whilst it’s not an entirely comfortable topic, it is worth noting the sheer numbers of Aussie businesses who want to take the cheap option and employ immigrants under a 457 visa. The standard line it that they “have a strong work ethic, and do the jobs that Australian staff don’t want to do”. However, these same businesses then turn around and complain about them not

being skilled enough. It’s a catch 22. Thankfully, Geremy believes this practice is becoming less and less frequent, given that staff can now transfer their 457 visa to a new employer if they are ‘getting ripped off’. “In such a candidate dry market the onus is very much on the employer to provide good working conditions if they want hang onto their staff more than ever,” says Geremy. “I don’t see taking 457 visas as the cheap option. Of course it depends on the level, however there are strict guidelines for salary amounts and if you’re taking a midlevel person on a 457 you are absolutely paying them market rate, like it or not.” Another unfortunate image problem the hospitality industry faces is that of equipping staff with poor knowledge of financial responsibilities such as tax and superannuation. The fact that payment has traditionally been with cash, this is a turn-off for new starters who require ‘on the books’ payments for everything from rental applications to direct debits. Geremy believes that most businesses are starting to cotton on, and change their payment systems.

“

We are already seeing many groups tailoring their operations to fit into the needs and wants of the labour market. “More and more electronic payments are being used,” he says. “There’s been an exposé of restaurants getting busted,

getting publicly named and shamed, and having to pay very large backpay amounts.” “Again, I think of course there are some that exploit, but the cash economy has been a part of the restaurant industry since the beginning. I’m sure a lot of the old guard just see this as being how you run a restaurant and think that without it they would no doubt go bust.” We asked Geremy how he sees the hospitality industry changing in coming years, as a result of the skills shortage. “We are already seeing many groups tailoring their operations to fit into the needs and wants of the labour market,” he says. “This in my experience is unheard of.”

5 ways venues have changed due to staffing : 1

High profile businesses closing certain days and capping hours so that their employees will work because they know that if they don’t they will just leave and go somewhere else.

Increased global marketplace - overseas staff.

Increased reliance on a casual market in a more permanent capacity, and in areas of the industry that hadn’t previously.

Increase in hospitality groups offering perhaps slightly simpler offerings with centralised production.

More menu items bought and less made in-house due to less staff.

KEEPING GOOD STA FF

CH 5 > REAL ADVICE

Ken Burgin is the founder of online training resource, Profitable Hospitality. Through online business, Profitable Hospitality, Ken has helped thousands of restaurants, cafes, and bars crack the code of what it takes to be both profitable, and popular. Ken notes he has been aware of the shortage in good hospitality staff for years now, looking to the drop in apprentices, and poor working conditions as reasons for the dwindling numbers of incoming staff. “Gen Y expect more,” he says and fair enough, “People just won’t tolerate the tough conditions they would have in the past.” Whilst this is a problem that is starting to attract more and more attention as Australia’s dining scene begins to shift and change, finding great staff has always been a tough game, says Ken. “In my 20-odd years in hospitality, it has always been a challenge to find great staff,” he says. “People will work and stay for a good, fair employer, and avoid a poor workplace. The actual numbers are tighter now, but the attractors and detractors are much the same.” Everyone is on their best behaviour in a job interview, and for young apprentices without references, it can be difficult to know what to look for in an ideal candidate. Seasoned campaigner Ken says, ”it’s easy. Wide eyes, energy and curiosity are the place to start,” he says, then making them feel comfortable in the interview environment so the important questions can be asked. 1 2

Have they done some research about your company online? What do they want to do for the next 6-12 months, and how we can fit into their plan? What do they like about the industry and this particular business?

Ken also recommends you ask for them to showcase some skills. For example, ask them to make four coffees in a row (for speed and consistency testing), or a simple omelette, or slice some onions. “You want to see what their physical skills are like, if you are recruiting for a skilled position,” says Ken. Find great staff is one thing, but keeping them is another. So, in a climate where a great staff member is like solid gold, what can businesses do to hang onto their staff? There are three main tips, says Ken, with most of them revolving around good communication. 1

Add regular short training activities to the weekly routine, led by one of the staff – these could be just 10 minutes, eg. skills practicing, watching a relevant YouTube video, or product knowledge quizzes. Hold a daily short huddle to check in with everyone on what’s happening and action needed. If not daily, a minimum of weekly. Hold regular quarterly reviews for each staff member based on a few standard questions, and as much to find out about ‘how things are going’. You will quickly pick up problems and be able to harness energy and suggestions.

One of the other primary issues small businesses are facing is actually finding staff in the first place. Gone are the days of simply advertising in your restaurant window, or word of mouth; the youth target audience, millennials, are more likely to be searching online for job opportunities and your advertising needs to stand out. Creating ‘shareable’ advertisements, that can easily be passed on from person to person, is key, particularly in the hospitality trade. Mobilise

your social media accounts with job advertisements, create a job listing on Seek, and search for local, online job boards. But the horse must come before the cart, as Ken points out, and that means creating a genuinely attractive work environment for prospective job hunters. “Check that your business is a great place to work, so you stop losing good people and become a magnet for quality candidates,” points out Ken. “Then when you go to ‘sell’ the job in an ad, word of mouth, social media or wherever, you can talk about all the genuinely great benefits you offer beyond just good pay.”

Consider incorporating some of the following ‘extras’ as part of the job description. After all, with less staff on the market, you will need to be competitive. -

Pa r k i n g a n d lo c at i o n

- Clo s e t o t r a n s p o r t - Day w o r k , M o n - Fr i - Go o d pay, o r awa r d wa g e s -

Modern kitchen, b a r , e q u i pm e n t

- U n i f o r m a n d training provided -

Fle x i b le h o u r s

P le n t y o f w o r k , i mme d i at e s ta r t

- Sta ff m e a ls + discounts - We e k ly pay b y E FT not cash - An n u a l le av e / h o li d ay le av e - H a ppy t e a m

And above all, the key to retaining your great staff, says Ken, is getting rid of the bad ones. Concentrating on problem staff and the dramas they create, will mean your attention is taken away from the good staff who need nurturing.

“

Don’t be afraid to ‘move on’ from under-performing or negative staff. If the boss is afraid to move on the slow and the shifty, they can expect to lose many of their good people. Be the boss you would expect if you were a staff member; keep your promise on wage rises, hour changes, or training opportunities. Although, as the boss, it’s easy to overlook or forget these discussions, they are often milestones that keep your staff engaged and satisfied.

CH 5 > REAL ADVICE

...

HOW TO KEEP YOUR COSTS LOW,

&YOUR PROFIT HIGH No, you’re not just imagining it: the cost of living is Australia is indeed skyrocketing.

With 20 years experience in the industry, has the cost of overheads and produce become dramatically worse? Absolutely. It’s a lot harder now to control and maintain costs, and it’s only going to get worse.

Why is that? Everything from the price of bread to the cost of a house has blown out in the last few decades. Since 1975, the average cost of a suburban property has grown 30 times in value, whilst the average wage has only grown ten times.1 Fresh food has also ballooned, with prices swelling even in just the last ten years alone, in Sydney, a 1kg loaf of bread cost $5.03 on average in 2013, compared with $3.33 in 2008, and $1.97 in 2003.2 Little wonder we are feeling the pinch. One sector feeling the cost of inflation - particularly in the realms of food and rent - is the hospitality industry. In fact, the shifts in business overheads and produce costs are creating tangible changes in not only how our country’s restaurants are run, but also what they look like. We sat down with chef and hospitality expert, Stefan Blee, to find out what’s happening in the industry, and how you can work to keep your own business costs down.

Stefan Blee has worked in the hospitality industry for over 20 years. During this time he has worked as a chef, managing high-end restaurants around Australia. For the last 21 years, he has worked in management, often looking after more than one business simultaneously. Stefan now lives in Brisbane, and has opened coffee shop and eatery Project 41. Stefan is a well-known industry expert in in hospitality management, and works as a consultant.

There is a rising cost of operating across the board. There is rising cost of leases, and also loans. The cost of foods are double what they were 12 years ago, such as fruit, vegetables, and meat. Back when I started cooking, you could rely on your cheaper cuts, but these days, there’s no such thing as a cheaper cut! Cheaper cuts are ‘fashionable’, so the trends have moved towards using them, and the prices have gone up. And as we know, labour is the hardest cost to manage. Staffing is the largest expense, so trying to keep your wages to an operating level is a struggle. We (Australia) famously have the highest minimum wage in the world, and that’s a real indicator of how hard it is to run a business - hence the decline of fine dining restaurants.

Apart from fine dining, what other areas of the hospitality industry are showing signs of change due to these rising costs? There is a move to casual eating, with really simple staffing structures; fine dining takes a lot of staff. When you consider inflation (across everything else), the cost of dining has almost become cheaper. Why? Because the prices on the menus haven’t changed that much in the last 15 years, despite everything else changing. Then you look at the added costs of running a business, I mean gas and electricity have doubled in cost over the last eight years! So just to operate, it’s so expensive. I’ve seen electricity costs go upwards of $25,000/quarter for a large restaurant.

less staff, and price points at $10 or less. There’s more repetition on menus: using the same items, or ingredients... just being clever.

What are some starting points for small business owners looking to reduce their overhead and production costs? It’s important to remember that there are costs that are manageable, and there are costs that aren’t. For example, when you sign a lease, you’re stuck with that lease. That’s fixed. All of your gas and electricity, they don’t really change either. The only things you can really manage are your costs of goods, and your wages. These are two things that need constant attention.

Businesses cannot ‘absorb’ the costs of these changes, but it’s more changing everything you do. We’ve all had to become a little more efficient. You will see the rise of cheaper eateries, therefore, with simple kitchens and

1 http://www.news.com.au/finance/money/costs/40-years-of-change-what-were-payingway-more-for/news-story/3a9cc7dbc1ec5394c3dbe8ba9365b064 2 https://www.allianz.com.au/life-insurance/news/the-rising-cost-of-living-in-australia

REDUCING OVERH EADS

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Make sure your venue’s layout is considered and doesn’t require alot of staff to manage.

so what are your tips on reducing the costs of goods? Shopping around, and making sure you’re getting the best deal. A lot chefs get stuck on using the same suppliers without looking around. I’m an advocate for having multiple suppliers: for example, one supplier might have oils and flours cheaper, and other supplier might have sugars and vinegars cheaper. It really pays to do your homework. And the other thing is always to negotiate these prices. If you have any kind of volume, your supplier will always be happy to negotiate.

You also mentioned managing your wage costs. This is a topic that is over the news, as Australia has increased our minimum wage to $17.70 per hour. What’s your advice on keeping wage costs low? It’s all about service structure: a business needs to learn to operate on its bare minimum. If you need one person to make coffee, and they’re busy making

coffee, and their costs are relevant to one person making coffee - then that’s fine. You can’t change that. That’s your bare minimum requirement. And then as your revenue increases, then you will have the need for more staff. But start with the minimum. However, I think many businesses are overstaffed. They get concerned with whether the ‘experience’ for the customer is complete. It’s just not necessary.

Are there any big trends emerging that business owners can take advantage of to reduce costs? Yes, the service style. So many places are opting for a more casual style. I think it works really well, and I think people are comfortable with it. With the food side of things, we’re seeing chefs utilising cheaper ingredients, especially in vegetables. They’re no longer relying on the prime cuts of meat - they’re slow cooking, and using pickles, which maintains lower costs. But the biggest trend I’m seeing is the abundance of cheaper eateries opening up. There’s burger places everywhere, little bars popping up with cheaper dishes, and little kitchens that are relying on less chefs. It’s very rare that you see large restaurant openings anymore.

What advice would you have for those looking to open a restaurant? It’s all about the lease. You need to negotiate a really good lease arrangement, and don’t overcommit yourself. You might think that because you’ve signed a really great lease smack bang in the middle of the city, you’re going to have thousands of people walking through the door, but that’s not always the case. Also, design is everything, of both the kitchen and the dining floor. I’ve just spent time with a restaurant that was doomed from the start. The architects came up with a beautiful space, but it was one that needed too many staff to control it. There were lots of nooks and crannies and it became a nightmare. The kitchen was too spread out, and it needed three chefs to make it work.

If you are interested in more tips, why not download our original eBook, ‘ T he Quick Guide T o Boos ti ng Re s ta ura nt Prof its ’ ? It’ s available for download on the S ilver Chef website.

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THE MASTER OF REINVENTION

PHIL BRADFORD TAKES ON NOOSA INSTITUTION WITH SILVER CHEF

Noosa Boathouse owner Phil Bradford is a veteran of the Australian hotel and hospitality industry. His impressive resume is an exciting - albeit exhausting! - journey through hotels, restaurants, and management; a worldwide journey that took him everywhere from Ayers Rock to the chilly streets of London. Now the owner and director of one of Noosa’s local institutions, The Boathouse, Phil has added another feather to his cap with the extensive renovations on the waterfront venue. With a stylish rooftop bar, huge function space, and trendy coffee shop; the Noosa Boathouse feels brand new thanks to the midas touch of Phil Bradford. But all stories must have a beginning, and for Phil, it was in a Darwin fish and chip shop at the age of 13. Humble beginnings that taught him, from his teens, how a venue operates from the deep fryer up. By 15, he was working at a family friend’s restaurant, and by university he was working front of desk and as a porter for a Darwin hotel chain.

After he graduated, Phil headed to Indonesia, where he continued working for hotels. Having found his niche, the industry swept him up on a 20 year whirlwind career, working everywhere from Ayers Rock, Hamilton Island, the UK, and Indonesia to name a few. In 2006, he felt that he needed a sea change, and worked for almost six years as the commercial manager for petroleum company OzFuel. This sea change wasn’t quite what Phil had hoped for, however; the long stints in remote areas like Charleville and Cloncurry saw him miss his true passion - hospitality. By 2008, he was back in the game, and back by the sea. He purchased the original Noosa Boathouse from an old industry friend, and by 2013, was in the driver’s seat as the owner and director.

A lot of “ businesses go out

his new equipment over the 12-month rental period with the Silver Chef RentTry-Buy® solution.

and spend a lot of money on what they think they’ll need, and then it becomes redundant.

Different customers see different benefits to the Silver Chef solution, and for Phil, it had less to do with easing the cash flow issues with starting a new business, and more about trialling the right equipment for an untested concept.

purchased outright from the start. “It was a chef mate of mine who said: take my advice. Don’t buy it outright straight away. If it’s sizeable, trial it through Silver Chef first.”

“We had no issues with cash flow,” says Phil. “If I wanted to buy the product, I’ll buy the product.” He needed to test the equipment first - and money can’t buy that. Indeed, for experienced businessmen like Phil Bradford, Silver Chef acts as the innovative, flexible, and modern-thinking business partner behind the scenes.

In the years since, he has slowly but surely reworked the space to create a modern and exciting venue, with significant attention paid to the menu for the notoriously picky Noosa culinary crowd. And he couldn’t have done it without Silver Chef.

After overseeing the opening of dozens of hotels worldwide over his 20 plus years in the industry, Phil knew to be wary of rushing in and setting his plans in stone before first testing the market. Flexibility, he says, is always the key to pleasing your customer. From menus to layout, equipment to design, you must always be light on your feet and able to shift and move with your audience’s needs.

“I hadn’t heard of Silver Chef before The Boathouse,” says Phil, noting that in the massive scale of the hotel industry, all equipment and fit outs are generally

“A lot of businesses go out and spend a lot of money on what they think they’ll need,” notes Phil, “and then it becomes redundant.” So, he decided to test out

It was the ease of mind, too; being able to bundle things together as one purchase, rather than sourcing individual deals. “For all our big ticket items we went through Silver Chef. We tested it out, 12 months ticked over,

and we bought it outright with a big discount. Easy.” Nowhere else will you have this kind of flexibility with equipment. To be able to ‘try before you buy’ is a rare opportunity, particularly with large scale, expensive pieces like Phil is currently renting. In his time with Silver Chef, Phil has clocked up an impressive worth of equipment rentals. He has used the Silver Chef solution to test out large scale items such as a Moffat range 6 burner convection oven, Skope undercounter chiller, and a Moffat griddle with stand. He has also purchased several items outright including their Electrolux combi oven and Eswood undercounter smartwash dishwasher. After a lifetime in hospitality, Phil has a lot to offer when it comes to discussing upcoming trends in the food and beverage industry. “It’s come back a lot from the GFC,” he notes, saying that

the immediate downturn following the financial crisis of 2007/2008 was a real blow to the hospitality business. “These days, it’s all about good service. You must have value for money - that doesn’t mean it’s cheap - and you then must back it with service, and consistency. Consistency is the biggest thing.” For a man who seen luxury hotels and restaurants come and go for the better part of 25 years, we think we’ll take his word for it.

NOOSA BOATHOUSE (07) 5440 5070 194 Gympie Tce, Noosaville Q 4566 noosaboathouse.com.au

NOOSA B OATH OUSE

CH 5 > REAL ADVICE

MANAGING THE

ONLINE SPACE

Video is the hot new content. The Facebook algorithm now favours content depending on how long someone has spent reading, or viewing, your update. Video is therefore becoming extremely important. The key is to create content that keeps people engaged.

IN SMALL BUSINESS You know what they say: you need to focus on working ON your business, not IN your business. The day-to-day of running a restaurant, cafe, or bar can take you away from looking forward. Broken equipment, last minute table cancellations, and training new staff can distract from what you, as the business owner, should be focusing on: growth. One driver for growth that is demanding more and more attention is your online presence. From social media accounts to a high-quality website, the hospitality industry is increasingly needing to adapt to the online space, as well as the traditional bricks and mortar. Here are our top tips to making sure you leverage online interaction to drive greater traffic into your business.

Create a Facebook business page. With changes to the Facebook algorithm, many people assumed Facebook business pages no longer hold the same value they once did. Not true. The latest data from late 2015 shows the extraordinary traffic seeking out

business pages, with a billion people visiting a Facebook business page in October alone.

your online following. If you only post once a month, it is unlikely to be seen, or appreciated.

For many younger users (aged 20s-40s), your Facebook page is their first point of call for contact details, reviews, images, menu, specials, and location and parking information. Make sure your page is populated with all of the above.

If you opt for the hard sell, Facebook won’t give you airtime.

Make a content calendar - and Delegate! For many cafe or restaurant owners, the concept of ‘social media’ makes them groan. It’s a time-consuming commitment, ensuring that you are top of mind and current across your consumer audience. For those who can afford it, you might have a marketing team or agency managing your social media accounts. But for many of you, it is something you struggle to manage yourself. Make it easy, and set up a content calendar to map out what you can upload on a daily, weekly, and monthly basis; and share the responsibility of content creation and uploading around your team. The general rule of thumb is this: the more you put in, the more you get out. If you commit yourself to at least one post a day, you will be top of mind with

Facebook reached a point where the news feed on an average user was clogged with promotional content. “Buy this!” or “Shop here!” peppered countless advertisements for brands and companies. Well, the crowd has spoken, and Facebook won’t allow it moving forward. Go for more subtle messaging, promoting your restaurant or cafe with customer reviews, video content, or republished reviews from other websites. Some examples include: + Food imagery + Menu updates + Seasonal ingredient profiles + Staff profiles or new staff announcements + Celebrity guests

Some video examples include: + Behind-the-scenes in your kitchen + Food preparation of great looking dishes + Some ‘did you know?’ facts about your cuisine, location, or other related topics + Short interviews with your manager, chef, or staff + Vox pop-style interview with customers

Yep, Instagram now offers video advertising. In 2014, Instagram introduced sponsored advertising to the feed, upsetting more than a few users in the process. Two years on, we barely notice them: so, to shake things up, they’ve introduced video advertising. What does this mean? Well, instead of just static images in your Instagram ad, you can now include videos. Moving imagery has been proven to capture greater attention from those scrolling the Instagram feed, and gives you 30 seconds to say, and show, a lot more than a single image.

Review your website and the functions it serves. Your website is no longer just a place to store menus and contact details. Your website is also now your online shopfront. The design, accessibility, and functionality of your business website all affect your sales. Your website should feature these hospitality-based features to the right. No longer just a ‘nice to have’ option, they are now expected by the new waves of ‘digital natives’ who are interacting with businesses online.

Use the reviews. Customer reviews are not only important is establishing a trusted reputation for your business quality with the online community and/or new visitors, but it will help your SEO ranking, too - in other words, your website’s ranking when people type key search words into Google. In short, businesses who want a prominent position in their local search engine results page (SERP) need users reviews. And if those businesses want to increase their website’s click through rate or physical visits, they need good reviews.

KEY WEBS ITE F E ATURE S Online booking

This can be done through companies such as Dimmi, Bookarestaurant and Obee, whereby you embed a widget (an application that enables a user to perform an action) on your site that allows customers to easily reserve a table. MENUS

Your customers want to check out your menu, so make it easy for them. Update frequently with specials and new additions. IMAGERY

For young digital natives browsing online, they are far more likely to respond to imagery than text. Integration with social media

Social media is an important part of most hospitality businesses’ marketing plansif you don’t integrate it with your website, you are not using it to its full potential. EMAIL SIGNUP

Collating a database of customers’ details will allow you to continue communicating with them and increasing your chance of return visits.

ONLINE SPACE

CH 5 > REAL ADVICE

“

Go for more subtle messaging, promoting your restaurant or cafe with customer reviews, video content, or republished reviews from other websites.

Of course , you must begin by providing excellent service, but you can also prompt your visitors to leave a review online by using one of the following tips :

Email customers asking for reviews Sending customers a follow-up email can be effective. If they’re on the Internet to answer your email, it is less effort for customers to head over and leave a review online. Use your business’s social channels Occasionally posting or tweeting to ask for customer reviews can work. Just be careful not to overdo it. Slow and steady Don’t falsely create a sudden burst of reviews (using your friends or family), as it will look suspicious and tip off the viewer. A slow but steady stream of reviews will look more realistic. And don’t rush it: if you receive 2 or 3 reviews a month - you’re doing well.

Use your bricks-and-mortar to find your customers online. Clearly advertising your Facebook, Instagram, or Twitter handles in store or in merchandise such as business cards or menus will make you easy to find. Millennials love nothing more than to declare their location eating out on their social media channels - so take the guess work out, and make sure it’s clear to find you. They will do the rest.

If you are interested in more tips, why not download our original e B ook, ‘ A SI M P L E S T R A T E G Y FOR M A RKET IN G Y OUR HOS P I T A L I T Y B USINESS ONL INE’ ? It ’ s available for download on the Silver C hef website .

CH 5 > REAL ADVICE

“We are the first to bring the ‘Better Pizzas’ concept en masse as we roll out Australia’s first ‘Build your Own’ Pizza stores, which we simply call Craft Pizza,” says Todd.

A SLICE OF ADVICE WITH

“With our new business model, our customer is in complete control of a high quality menu and it’s served fast - fired and fresh in under three minutes - all at reasonable prices.” It’s fair to say that Todd knows what the people want (we’re already sold!).

EW YORK SLICE

And little wonder. Todd’s history lies in sales: his first role was with a telecommunications company back in 1991, where he spent two years as their Sales Manager for NSW. Although he went on to work in senior management for various other companies, he never lost his passion for driving growth from the grassroots level.

Todd McGregor is the CEO of Brisbane pizza sensation, New York Slice.

For this reason, he is constantly searching for new ways to expand within the already congested fast food industry. His biggest focus for the year ahead? Delivery.

Beginning in sales and working his way up to managing director of several multinational corporations, Todd was highly experienced to take on the management of bringing American-style pizza to Australia.

“There will always be a market for takeaway for convenience, but the real market opportunity is in delivery,” he notes.

But when it came to the world of hospitality, Todd was a relative ‘newcomer’ to the industry - a characteristic that ruled in his favour. His business-oriented background gave him fresh eyes to assess a situation bursting with opportunity, and with his help, New York Slice has seen remarkable growth.

“In the past, delivery has almost exclusively been the preserve of fast food and the mature third party delivery businesses... Now restaurants and fast casual businesses alike are joining the throng where you can get high quality food delivered via third parties such as Menulog, Foodora, Uber Eats, and Deliveroo.”

We sat down with Todd to talk about the New York Slice franchise, and his predictions for the fast food industry as a whole. Todd has managed the New York Slice brand in Brisbane for three years. During this time, he has seen the fast food industry grow and change, and has worked hard to make sure his brand adapts to the new environment. The biggest change he has noticed in this time is the rise of the ‘fast casual’ fare: high quality food, prepared and served in a cheap, fast, convenient environment. “In the U.S. they refer to this as the ‘Better’ offering,” explains Todd, “whereby the customer gets a better, higher quality product than the fast food version - but it isn’t expensive, and doesn’t require the long time commitment like a traditional restaurant.” In Australia, he notes, the general population has begun to move in a similar direction, opting for ‘better quality’ takeaway food. Yes, we are still opting for burgers, Mexican food, ice-cream, pizza, and other fast food options,, but we want a higher quality offering than the standard takeaway stores. For this reason, New York Slice introduced their version of a gourmet, self-designed pizza range called ‘Craft Pizza’. It’s personalised, super fresh, and trend-driven.

There will “ always be a market

for takeaway for convenience, but the real market opportunity is in delivery. In fact, Todd believes that the fast food companies will continue to dominate this space, rather than their restaurant

competitors who also supply via those channels. “I don’t believe the restaurant delivery version will work long term. You wouldn’t be happy if the filet mignon that you paid $60 for showed up less than perfect!” The sudden burst of fast food apps can be attributed to the fact that more Australians are eating out than ever before. According to Todd, this the growing quality of market; convenience is with personalised and food options.

is because of the takeaway now matched high quality

“Now that there are more options in the fast casual/better space, people have naturally gravitated towards it,” explains Todd. “It isn’t a big imposition on time or cost, and the offerings are high quality. We have seen many fine dining restaurants close their doors because of the overheads, but also because it’s an occasional consideration, whereas you now have many fast casual choices across the spectrum of food.”

In the past, “ delivery has almost

exclusively been the preserve of fast food and the mature third party delivery businesses… Now restaurants and fast casual businesses alike are joining the throng where you can get high quality food delivered via third parties such as: Menulog, Foodora, Uber Eats, and Deliveroo.

It is fair to say that online ordering technology has given the fast food industry a massive bolster in terms of accessibility and sales. But does this then negate the need for great ‘bricks and mortar’ locations? Not at all, says Todd. “Each business will find its natural place in terms of how and where they engage customers - be it in a shopping centre, street location, concession or online.” But he still notes the importance of focusing on both markets equally. “It should most likely be a mix of both physical and online,” he says. “Back in the dot com days we referred to this as a ‘Clicks and Bricks’ approach.” Behind the scenes, New York Slice is using technology for more than just customer ordering. With 25 years in technology, Todd was quick to recognise how important it was to streamline the back-end of the New York Slice franchises, in order to focus on their customer-facing business.

NEW YORK SLICE

CH 5 > REAL ADVICE

“Each store we build provides our franchisees with access to real time store surveillance, live sales reporting, COGS, labour quotients and all of the other KPI’s a quality business should have,” explains Todd. “We also utilise a service that does all of the accounting, tax compliance and dashboard reporting, so we are very tech-savvy.” Part of this tech-savvy solution for Todd was also to streamline the set-up process for each of the 15 New York Slice franchises around the Brisbane area. Giving the franchise owners the opportunity to use Silver Chef for their set-up, he was able to save precious time with our online application system, and super-fast approval and installation turnaround. “We have used Silver Chef very successfully for equipment finance for some of our stores,” says Todd. “Because Silver Chef is specific to the hospitality sector, they understand the suppliers, distribution and market dynamics already. This is an added bonus, as most banks simply don’t get it.” As part of the personalised Silver Chef solution, we worked with Todd and the New York Slice team to create a store-specific budget for the owners to work within.

“We have a preapproved limit in place as an accredited franchise system,” explains Todd, “which helps our franchisees make decisions about investment easier when they are considering our franchise system.”

offerings, some of them won’t make it out of their slump,” predicts Todd.

With two decades in the business of profit management, the Silver Chef Advantage™ solution made sense to Todd; it gave the stores a chance to start turning over profit (6 months), before beginning the repayments. “Silver Chef is a great option for anyone looking to preserve cash, which is obviously critical for any business,” he notes.

For the 15 store New York Slice chain, their offering is all about working towards what their customer wants.

“Also, the fact that we can choose our own equipment suppliers is a huge benefit, as other equipment finance companies will stipulate brand or even model, so Silver Chef is very flexible.” Looking forward to the future, Todd notes that the smaller, more nimble brands in the fast food industry will be the ones to succeed. The ability to adapt and change to the consumer audience is crucial, particularly in the trend-driven climate that we are currently experiencing. “I believe that although some of the top tier fast food chains are changing up the

“The old adage of too big to fail is actually more akin to too big to change for some of them.”

“We started 14 years ago with a couple of points of difference – New York style pizza (thin crust, lightly topped) and massive pizzas sold by the slice,” says Todd. “We too saw the advent of fast casual coming and have pivoted our model to align with where the growth will be. In the U.S., the Build your Own pizza concept is the fastest growing pizza segment and beating the fast food pizza offerings to slow death.” Silver Chef is excited to work alongside New York Slice as they continue to go from strength to strength in the growing pizza market. And everyone wants a slice of that. NEW YORK SLICE PIZZERIA 1300 639 967 Multiple locations across QLD newyorkslice.com.au

.. the fact that we can “choose our own equipment

suppliers is a huge benefit as other equipment finance companies will stipulate brand or even model, so Silver Chef is very flexible.

CH 6 > THE EXTRA ELEMENT

The

EXTRA ELEMENT

Silver Chef has always strongly believed that there is more to business than profit margins and clever business solutions. We have always worked our hardest to match our business ethos with a sense of integrity, community connection, and ‘out-of-the-box’ thinking. Business with a conscience. We are a B Corp certified business, which means that we have made a lifelong commitment to being good and fair to our employees, the planet, and our customers.

In this section you will hear more from our partner and B Lab Australia & New Zealand Executive Director Alicia Darvall, as she speaks about their vision for the Aussie hospitality business. We also profile our involvement with Opportunity International Australia, where Silver Chef has helped more than 750,000 people out of poverty to date. Our motto in business is to help people achieve their dreams: and for us, that extends beyond just our customers. That’s everyone we come in touch with.

CH 6 > THE EXTRA ELEMENT

Opportunity International Australia: Helping give people in poverty a hand up, not a hand out.

Our team at Silver Chef is passionate about our philanthropic work, in particular, our support of a charity called Opportunity International Australia.

for-profit organisations to recognise the benefits of providing small business loans as capital to those working their way out of poverty.

This not-for-profit organisation was founded in 1971 by two visionary leaders who were inspired to take action after their encounters with people living in extreme poverty.

For clients around the globe, these transformations take place every day â&#x20AC;&#x201C; beginning with loans as small as $70. Opportunity provides small business loans, savings, insurance and training to people working their way out of poverty in the developing world. Clients in over 20 countries use these financial services to start or expand a business, provide for their families, create jobs for their neighbours and build a safety net for the future.

The team at Silver Chef feel a special affinity to this organisation, most notably because just as we provide a unique model of equipment funding to help our customers succeed, Opportunity was one of the first not-

When these people from very poor communities in third world countries, establish businesses through an Opportunity International Australia loan, they often set monumental changes into action improving the lives of many people within the villages in which they live.

Silver Chef has â&#x20AC;&#x153; helped more than

750,000 people out of poverty through Opportunity International Australia, with the intent of reaching 1.5 million people by 2020. To find out more about this inspiring organisation, visit: opportunity.org.au

OPPORTUNITY INTERNAT IONAL

IM A GE | F OODTA NK .COM

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Just like “ humans, fruits

SUSTAINABLE, INNOVATIVE, ACTIVE:

LOOKING BEYOND THE BOTTOM LINE

and vegetables come in all shapes and sizes. We have set out to promote self-esteem amongst wonky yet gorgeous produce. - EAT ME, CHUT NEYS

IN BUSINESS WITH B CORP ...

Alicia Darvall is the Executive Director of B Lab Australia & New Zealand. Businesses like Hootsuite, Ben & Jerry’s and Etsy are paving the way in establishing sustainable and eco-friendly measures, and as a business owner in hospitality, you too can get involved. The world of business has begun to change, you see: no longer are the primary interests simply profit and loss. There is a fresh focus on your team: your environmental footprint, and your social contribution. And B Corp is here to not only gauge your success in those arenas, but to guide you in your development, too. B Corp explains their mission succinctly on their website: “B Corp certification is to sustainable business what Fair Trade certification is to coffee.”

Founded in America, B Corp seeks to ‘redefine success in business’, through the avenues of social and environmental innovation. Since first hitting Australian shores in 2006, B Corp International today boasts a growing community of more than 1,785 companies, across 50 countries and 130 industries.

And how can YOU get involved? Alicia Darvall is the Executive Director of B Lab Australia & New Zealand. B Lab is the non-profit arm which created, and awards, the B Corporation certification for for-profit organisations. Think of them as the ‘supervisors’ of the B Corp brand.

Silver Chef proudly became B Corp certified in 2015. Since then, we have continued our three-fold focus: the careers and development of our staff, the financing of equipment for small businesses and helping them realise their dreams, and microfinancing people out of poverty in third world countries.

Alicia is excited for the future of B Corp in the food and beverage sector. To her, it is teeming with opportunities to reinvent the wheel, so to say: chances for local businesses - regardless of size - to review how they work.

But why is B Corp important to the Australian hospitality industry?

As it seems, there are already quite a few amazing Australian food and beverage businesses who are B Corp certified. Alicia gave me her top three.

WHOL EKIDS

EAT ME, CHUT NEYS

JASPER COFFEE

Wholekids is a line of organic, healthy, children’s snack foods. Now available in all the major supermarkets, Wholekids was founded by Monica and James Meldrum in 2006 when they struggled to find healthy food for their daughter, Chloe. Wholekids was one of the first Aussie companies to be B Corp certified.

Eat me, Chutneys is a social venture based out of Sydney that turns unwanted fruit and vegetables into delicious, home-made chutney. It was started by chef Ankit Chopra and his mother Jaya. To date, they have converted 1.93 tonnes of discarded produce into 10,966 jars of chutney.

A Melbourne-based coffee roastery, Jasper Coffee is officially Australia’s first coffee company to become B Corp certified. It was established in 1989 by company directors Merilyn Parker and Wells Trenfield, and have consistently aligned with fair trade initiatives such as Fairtrade, the Cafe Femenino Project, and helping farmers with the Yirgacheffe Kochore Project in Ethiopia, in partnership with World Vision Australia.

“James and Monica started up around ten or fifteen years ago,” says Alicia. “It occurred to them that they really wanted to think about the lifecycle of their packaging, as they use those plastic squeezy pouches. They’ve partnered with a company called TerraCycle, which provide a second life for their pouches and their caps - turning into into garden furniture, and school products.”

“They started making chutney out of wonky produce. They have two lines: one where they use the wonky produce from the end of the markets, and one which is fairtrade chutney, where they make sure that every element of the supply chain is fair trade.” They also employ disadvantaged job seekers, many of whom are female asylum seekers, to assist them in rejoining the workforce.

“Jasper’s focus is on humanising the supply chain. They are organic, fair trade, and carbon neutral certified - to make sure every sector of the business is looking after the community and the earth. They believe B Corp sits above all other qualifications they have. I really like their motto in becoming a B Corp: ‘We recognise what does matter, by what our matter does.’”

BUSINESS WITH B CORP

ENQUIRIES@SILVE R C H E F.C O M.A U 1300 795 889 SILVERCHEF.COM.A U

CH 6 > THE EXTRA ELEMENT

Clearly, from the examples given, B Corp is about creating a circular economy that just makes sense to your product or offering. With Wholekids, for example, it’s simply logical for a parent to invest in a product that will eventually contribute to making school equipment. Or, for Eat Me, Chutney, anyone who has witnessed the immense waste of ‘ugly’ fruit and vegetables will be personally inclined to purchase this product. Indeed, it is fair to say that in the consumer-led economy we live in, the B Corp certification means just as much to the customer, as it does to the people or communities the company employs.

A business “ needs to be thinking

about the locality of their suppliers and how they look after them. And the better relationship you have with your suppliers, the more likely they are going to look after you in good and bad times.

Looking at hospitality as a whole, Alicia notes that the industry needs to be prepared for increasingly savvy customers. These customers are no longer willing to see a company just pay lip service to how they look after the environment, and the practices they use in their cafe, says Alicia. “I think as a bare minimum you would have fair trade soap, and ‘Who Gives A Crap’ toilet paper, and other social enterprise products. I think the customer

increasingly understands the importance of the supply chain, and where products are coming from.” In addition, Alicia believes that the food and beverage industry needs to work to understand their suppliers, and ask questions. Who made this? What are the conditions like? How can we pay a fair price for this product? Is this product environmentally friendly in the way it is grown or harvested? “As the world continues to change, and we’re increasingly at the mercy of our environment,” says Alicia, “a business needs to be thinking about the locality of their suppliers and how they look after them. And the better relationship you have with your suppliers, the more likely they are going to look after you in good and bad times.” This ‘hyper local’ mindset extends to the food miles your chosen items are covering. Opting for ingredients that are in season, and able to be sourced locally, will significantly decrease your carbon footprint. But again, says Alicia, this comes down to strong communication with your suppliers. Looking inwards to a small business, a major B Corp focus lies with employee relations. Providing a safe, supportive, educative, and fair place to work is the foundation of the B Corp values. But for an industry like hospitality - a cash-inhand, high-pressure environment - how can you start to shape your business into a B Corp-friendly space? According to Alicia, it’s all about actively involving your employees in the fabric of the business. “I think having a purpose driven company is important for employees - increasingly, the next generation don’t want to check their values at the door when they go to work,” suggests

Alicia. “They want to be engaged in the purpose of the business.” ‘Engaging in the mission’ of your business might mean involving them in the supply chain, giving back to the community through volunteer work, or taking the time to explain your ‘good choices’ in the world of business. In short: be thoughtful. Have the conversation about values with your staff, and organically this will be passed through to your customers. 5 HA NDY T IPS F OR T HE HOS PITA L IT Y S E CT OR: 1

Do one thing, and do it well.

Understand why you do what you do.

Set up your company so that it can operate without you there.

Do not rely on ‘sweat equity’ as your main driver in the business: create smart systems..

Befriend your suppliers, and take ownership of your supply chain.

If you are interested in becoming B Corp certified, you can take their B Impact online assessment here:

beta.bimpactassessment.net/ get-started/bcorporation Or read more on their website , here:

bcorporation.com.au