Sydney cafe owners on how cost of living is impacting hospitality industry

Cafe owners are having to think on their feet to retain customers as “unaffordable” cost of living is leading to financial difficulties. See their tactics here.

Sydney’s top cafe owners have said cost of living is forcing cafes to think on their feet and find new ways to stand out, as customer’s expectations rise.

Sydney’s cafe owners are grappling with increased customer demands as cost of living continues to soar – with inflation currently sitting at about seven per cent.

Cafe owner Chrstine Camilleri, 51, was handed a national award recognition for her Hills Shire cafe, but even despite this, she said she feels immense pressure in the highly competitive industry.

Mrs Camilleri’s cafes The Burrow and Sunny Side just won the Local Business Award for Most Outstanding Cafe and Best New Retail Business at the Small Australian Business Awards, respectively.

Yet, with all the experience and accolades a cafe owner could wish for, Mrs Camilleri has said the “unaffordable” cost of living is changing the industry.

“It’s harder to keep your head above water, to keep competitive and be the point of difference – no one has money,” Mrs Camilleri said.

All smiles with Mrs Camilleri and her team at The Burrow in Hills Shire after winning the accolade – but the award winner knows she can’t get complacent.

Mrs Camilleri said exceptional quality matters now more than ever, with prices “through the roof”.

“If they’re paying premium for a bacon and egg roll, they want premium,” she said.

Mrs Camilleri’s newer business Sunny Side opened up just last year and despite years of experience, she was “terrified” by it.

“It’s a trying time to be a new business.”

Mrs Camilleri said retaining staff was key in providing consistent quality.

“Staff that engage with customers and make the cafes fun to be in helps a lot,” she said.

Despite winning the prestigious award, Mrs Camilleri said she was terrified by her new business.

Mrs Camilleri said the cafe community have kept her on her toes with high standards.

“Every meal that goes out has to be high quality – you can’t drop the ball,” she said.

Mrs Camilleri recently added a “puppy menu” and a “kids day”, to allow parents to use the cafe as respite for tired mothers.

“You can’t be afraid to make changes or try new things,” she said.

The Telegraph recently interviewed Sydney cafe owners on how artificial intelligence could help keep costs down in the hospitality industry.

Mrs Camilleri isn’t alone – cafes around Sydney are having to adapt to keep their customers coming back.

Christopher Thé from Hearthe Cake Shop and Cafe in Stanmore said building a loyal customer base is necessary in combating the growing cost of owning the business.

Christopher Thé said even loyal customers are coming in less, to save money. Picture: David Swift

“We’ve had strong support from our local community – despite the rising cost of living – even though they may not come as often as they did before,” Mr Thé said.

Mr Thé said instead of acting as a quick coffee stop, his cafe had to feel like a local hub for the community – so that the experience goes beyond money spent on food.

“We get to know most of our locals by name and what they drink, and many hang around for a chat,” he said.

Scott Clark from Valentinas in Marrickville said they had to reconsider their spending to each dollar.

Scott Clark’s business have had to make economic adjustments to keep up with the rising cost of living.

“To combat rising costs of produce and labor, we’ve implemented strategies such as carefully monitoring inventory and streamlining our menu to reduce waste,” Mr Clark said.

He said building a loyal customer base is what kept the business alive – and to do that – they’ve had to ensure consistency on all fronts.

“Our team’s training and development is a top priority to ensure they provide exceptional hospitality. How service in a venue makes someone feel is the most important factor in them coming back,” Mr Clark said.

Dan Yee, owner of Artificer Coffee in Surry Hills said increased menu prices was inevitable, but hoped that building a loyal customer base would soften the blow for customers.

Dan Yee said his cafe needed to earn customers trust before necessary menu price increases. Picture: Bob Barker.

“Our product is solid, so when we do small price rises, our clients understand it because we have a good relationship to convey it,” Mr Yee said.

Mr Yee said regulars are the “bread and butter” in keeping his business afloat.

“We don’t exert too much energy on the hype stuff that brings in a few people for a short period of time but rather the people who come day in, day out.”

Trevor Simmons, CEO and Co-Founder of Industry Beans in the heart of the CBD, said running cafes had become more challenging in recent times.

“Customers are more conscious about where to spend their money while costs are increasing,” Mr Simmons said.