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Labour cost crisis ?

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  • Labour cost crisis ?

    It's very obvious in Sydney this long weekend that the holiday penalty pay rates are biting into profitability.
    most of the popular (busy) cafe's on the north shore will not be open much of the weekend due to the labour costs.
    its crazy, you would think a holiday W/end would be a prime time for Cafe trade, but now I will have to search out new venues or resort to breakfast at home !

  • #2
    Sure, but it might also reflect that fact that staff/management want to go away (or otherwise have a break) for Easter.

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    • #3
      Originally posted by Barry O'Speedwagon View Post
      Sure, but it might also reflect that fact that staff/management want to go away (or otherwise have a break) for Easter.
      My regular cafe owner commented that they just could not justify the bank holiday opening (Saturday also this year) as the staff costs would likely exceed the take, and advised that several other cafés would likely do the same.
      no issues with staff availability...most staff were actually upset at no work opportunity...
      So everyone loses, ...staff with no income,...cafe owner likewise,...and customers with no w/end breakfast. ,

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      • #4
        Originally posted by blend52 View Post
        My regular cafe owner commented that they just could not justify the bank holiday opening (Saturday also this year) as the staff costs would likely exceed the take, and advised that several other cafés would likely do the same.
        no issues with staff availability...most staff were actually upset at no work opportunity...
        So everyone loses, ...staff with no income,...cafe owner likewise,...and customers with no w/end breakfast. ,
        Agreed same with mine. Not worth being open as they lose too much money. Hoping they don't lose customers due to their closure too.

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        • #5
          Not so for my locals, all clients have ordered more beans and have already noted the increased traffic today.

          One even ordered a coffee cart for out the front to do take-aways and serve the queue which will form tomorrow morning before they are open

          and reform around lunch and repeat every day over the weekend.

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          • #6
            I think the difference is my local deals with locals and workers in the area.

            Knowing where you are based chokkidog I would guess (could be way off base) your cafes will be dealing with an influx of people to the area due to the public holidays maybe, making staying open more profitable??

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            • #7
              Yep Luke!

              Either you get slammed during the week or slammed on the weekend!! The demographics of owning/locating a cafe is a huge consideration.

              Hope you have a great weekend!

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              • #8
                You too mate

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                • #9
                  There are just so many cafes around these days that it is hard to imagine there are enough customers to keep them all in business.
                  It's a 'numbers intensive' industry isn't it. I would guess that the cafes in the 'right' spots do just fine regardless of penalty rates but many in high-competition or marginal locations struggle as soon as any parameter changes (slow demand, extra costs, etc)
                  I don't mind paying a buck more for my coffee on a Public Holiday, and I still leave a tip. I can't be the only one surely.
                  Put the Pokies into the Cafes - it worked for Hotels (for which there was no demand)

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                  • #10
                    Some cafés/restaurants here charge a surcharge on public holidays. I imagine it works fine provided it's busy enough.

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                    • #11
                      Labour cost crisis ?

                      Just remember that a boss may not be a nice guy. He could refuse to pay holiday rates because he 'payed 7% over the standard rate.'
                      Last edited by mwcalder05; 3 April 2015, 09:07 PM. Reason: Mega confusion apparently

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                      • #12
                        Originally posted by mwcalder05 View Post
                        Just remember that some bosses could not be nice guys and not tell an employee that he wouldn't pay holiday rates because he payed 7% over the penalty rates before he started working..
                        Am I the only one not having a clue what the above is supposed to mean?

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                        • #13
                          No.................. ;-)

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                          • #14
                            A triple negative with a reference to something or other "before he started working" leaves me somewhat befuddled and bemused

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                            • #15
                              And one more for good luck... I have now entered the realm of quadruple digits. Happy Easter everyone... with or without penalty rates.

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