‘Quadruple whammy’: Why it’s costing more than ever to eat out

Queenslanders are paying almost 10 per cent more for a meal out at a restaurant than the same time last year, as venues are forced to pass rising costs onto consumers.

Queenslanders are paying almost 10 per cent more for a meal out at a restaurant than the same time last year, as venues are forced to pass rising costs onto consumers.

Figures from point-of-sale and e-commerce software provider Lightspeed found the average dining bill size in the Sunshine State had increased 9.8 per cent at restaurants compared to the same time last year, while it had risen 1.6 per cent at cafes and 4.6 per cent at bars.

The higher prices come as a result of the soaring cost of ingredients, particularly butter, milk, sugar, flour and eggs, alongside skyrocketing wages, utilities, insurance, rents and alcohol excises.

It means, for example, a piece of King George whiting at James St, Fortitude Valley favourite SK Steak and Oyster, which last year cost $64, now costs $72; while a pumpkin and ricotta pasta dish at popular restaurant Establishment 203, just up the road has increased $8 since the end of last year to $36.

Australian Restaurant and Cafe Association CEO Wes Lambert said venues had little choice but to pass on the escalating costs to consumers to survive, but that also meant a potential loss of patronage as customers couldn’t afford the price hike.

“It is a quadruple whammy for hospitality businesses when all of the costs they incur to put food on a plate go up much higher than inflation,” Mr Lambert said.

“This has led and will continue to lead to closures in the industry as diner demand continues to plummet.”

It follows figures released last month by Australian credit reporting firm Creditor Watch, which predicted one in every 13 Australian hospitality business will fail in the next 12 months as discretionary spending dries up.

Victory Lane restaurant owner Chris Cosgriff and operations manager Daisy Wilson, Ascot say they are trying to keep food as affordable as possible for their customers. Picture: Liam Kidston

Chris Cosgriff from Muragh Operations, which owns restaurants Victory Lane in Ascot, Botany in Newstead and Jetty in South Brisbane, said his insurance bill had tripled in the past 12 months, while all other costs had increased by about 10 per cent in the same period.

“It’s almost tougher now than in Covid because all our expenses have gone up and we’re throwing all this money at marketing and things like that but people just aren’t coming out,” Mr Cosgriff said.

Rather than raise his menu prices, he said he was constantly tweaking dishes to make them more affordable, using different vegetables and proteins to continue to offer value for money to customers.

“It’s a balancing act but I’d rather work smarter on my end and if you have the right systems in place you can keep those numbers down for the customers and keep enough profit for you as well but, again, that’s a bandaid fix and there’s only so long you can do it,” he said.

Adam Wolfers from Anyday Group, which is behind some of Queensland’s top restaurants including Agnes, Same Same and Honto, as well as Agnes Bakery, said the rising prices of staples like flour, sugar and butter was impacting everything from the cost of pasta to bread.

“We’re seeing the prices of everything going up – it’s definitely hitting us hard,” he said, the situation made worse by a decreasing consumer spend, particularly during the week, brought on by the cold weather and cost-of-living pressures.

Whole sole at Fosh at Hamilton.

Cappellacci pasta filled with roasted pumpkin and buffalo ricotta at Establishment 203.

He said the business was currently riding out the price hikes, choosing not to pass them onto consumers who were already doing it tough, but revealed they expected more challenging times ahead with the price of olive oil and eggs set to soar due to local and global shortages and bird flu.

Restaurateur Dan Clark from 1889 Enoteca in Woolloongabba and Rothwell’s Bar and Grill in Brisbane City said his electricity bill was “ludicrous” rising $500 one month and $700 the next, while insurance had also catapulted.

“With insurance, a lot of people are cutting things out of their policy and just looking at what they really need,” he said, sharing he was managing his budgets extremely tightly and focusing on consistency to keep customers returning.

“The interest rate cut next year, everyone is just hanging out for that to happen,” he said.