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Thread: Labour cost crisis ?

  1. #1
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    Labour cost crisis ?

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    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. #2
    Senior Member Barry O'Speedwagon's Avatar
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    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. #3
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    Quote 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. ,

  4. #4
    Senior Member Lukemc's Avatar
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    Quote 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.

  5. #5
    Senior Member chokkidog's Avatar
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    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. #6
    Senior Member Lukemc's Avatar
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    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??

  7. #7
    Senior Member chokkidog's Avatar
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    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!

  8. #8
    Senior Member Lukemc's Avatar
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    You too mate
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  9. #9
    Senior Member Rocky's Avatar
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    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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    Some cafés/restaurants here charge a surcharge on public holidays. I imagine it works fine provided it's busy enough.

  11. #11
    Senior Member mwcalder05's Avatar
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    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; 3rd April 2015 at 08:07 PM. Reason: Mega confusion apparently

  12. #12
    Senior Member Vinitasse's Avatar
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    Quote 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. #13
    Senior Member chokkidog's Avatar
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    No.................. ;-)
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  14. #14
    Senior Member Vinitasse's Avatar
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    A triple negative with a reference to something or other "before he started working" leaves me somewhat befuddled and bemused

  15. #15
    Senior Member Vinitasse's Avatar
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    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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  16. #16
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    Quadruple digits??
    is that you, Jesus?

    Happy b'day.
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  17. #17
    Senior Member saroadie's Avatar
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    Quote Originally Posted by Vinitasse View Post
    A triple negative with a reference to something or other "before he started working" leaves me somewhat befuddled and bemused
    The negatives were 2 nots and a n't. That's double time and a half negatives. Must be Good Friday.

  18. #18
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    Labour cost crisis ?

    Quote Originally Posted by Rocky View Post
    Put the Pokies into the Cafes - it worked for Hotels (for which there was no demand)
    Interesting proposal. It could be more bizarre, I have seen pokies in supermarkets in Las Vegas.
    Round here Most of the slot jockeys seem to prefer the free instant and the complimentary bikkies.

  19. #19
    Senior Member mwcalder05's Avatar
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    My apologies for the confusion! One or two many coffees. Edited up now. My point is: some bosses could be ripping off their employees

  20. #20
    Senior Member Vinitasse's Avatar
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    Quote Originally Posted by mwcalder05 View Post
    My apologies for the confusion! One or two many coffees. Edited up now. My point is: some bosses could be ripping off their employees
    In the hospitality world here in Australia, most bosses are

  21. #21
    Senior Member Barry O'Speedwagon's Avatar
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    Some more interesting info / opinions in regard to penalty rates:

    This Easter give thanks for penalty rates, they keep us human

    "Have you heard about the member of parliament who couldn't find a bottle shop open on Good Friday? He blamed penalty rates. The real reason was Sydney's licensing laws.

    Penalty rates get blamed for almost everything these days, which is odd because they've been around for 100 years. The Chamber of Commerce and Industry wants businesses that are closed over Easter to put signs in their windows saying it's because penalty rates are too high. If they are open it wants them to put signs in their windows saying they are employing fewer staff than they would like because penalty rates are too high. As it tells employers on its website: "There is a poster for either scenario relevant to your business."

    Article continues.

  22. #22
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    Had lunch at the surf club yesterday, 15% surcharge which I'm happy to pay to cover penalty rates for workers, as I'm enjoying the holiday and the staff are working, I know which position I'd prefer to be in. If you can't afford to pay the rates then your business model is crook.
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  23. #23
    CoffeeSnobs Owner Andy's Avatar
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    Just finished roasting... so how much do charge for these beans on Easter Sunday?
    (Can I get back-paid for 8 years of Sunday roasts?)

    My boss is mongrel, makes me work all sorts of odd hours (up to 18 a day) and nearly every public holiday too.

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  24. #24
    Senior Member Rocky's Avatar
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    All self-employed people work for tough bosses.
    I have a lot of self-employed friends and they all work harder and longer than me.
    They will tell you however, that at least they work for someone they like who isn't a DH.



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