What your $30 plate of food really costs restaurants
Some of Melbourne’s top chefs break down what $30 covers when you pay your restaurant bill. Read their full responses to the key questions on the state of the hospitality industry.
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Top chefs have revealed they’re only making 60c from a $30 plate of food.
The remaining $29.40 accounts for wages ($13.50) produce ($10.50), rent ($3), utilities ($2.40).
We asked some of the city’s top chefs and restaurateurs hard-hitting questions – on and off the record – to reveal the true state of our hospitality horror story.
SHANE DELIA, CHEF, RESTAURATEUR
28 years in industry
Maha, Bar Jayda
What are the biggest issues impacting the industry?
“Employment costs are through the roof and that takes in payroll tax, increase in super contributions, rate of pay and recruitment costs. Cost of goods and operation, such as rents, insurance … WorkCover costs are through the roof. But the biggest challenge is s--t governance. Victoria is the worst state to do business in, with a lack of tax incentives and people returning to work in the CBD.”
Are you running at a profit, breaking even or a loss?
“As a group we are running at profit, above ten per cent. But that is not true of every brand – some are losing significant money and others are strong because we are strongly managing it.”
Are people still tipping?
“Yes. On average, 60 per cent of our customers are and most tip within 10 per cent of the total bill.”
What measures are you taking to make ends meet?
“One thing in our group is controlling the controllables. We are about creating memorable experiences but also, we’re in the business of business. If you’re brilliant at what you do, you can make anything brilliant.”
What needs to change to stop restaurants from closing?
“The only thing that’ll save restaurants is restaurants. We need to be united, we can’t be fragmented like we are now. We are the largest industry in the country and we aren’t represented properly. We need to be represented at a government level, led by the appropriate people.”
CON CHRISTOPOULOS, RESTAURATEUR
30+ years in industry
The European, Melbourne Supper Club, Siglo
What are the biggest issues impacting the industry?
“Wages are by far the main one. We haven’t moved quickly enough to new pressures (change in culture, working from home, cash economy disappearing) and changing consumer habit (coming into the office three days instead of five per week).
Are you running at a profit, breaking even or a loss?
“Single figures profit.”
Are people still tipping?
“No, and it’s partially hospitality’s fault. I love to tip, but there are many places where I’m told we don’t need to tip because the staff get paid appropriately.”
What measures are you taking to make ends meet?
“At Butcher’s Diner, we have an affordable and high quality product – but there’s no service. You go up to the till, order, get a buzzer and collect your food. Here, I can reduce my wage cost by ten per cent, but I can’t reduce food costs.”
What needs to change to stop restaurants from closing?
“Restaurants need to diversify and specialise. Too many businesses are cookie cutter of someone else’s idea.”
CATERINA BORSATO, RESTAURATEUR
29 years in industry
Caterina’s Cucina E Cafe
What are the biggest issues impacting the industry?
“Increased costs for everything – produce, rent, insurance.”
Are you running at a profit, breaking even or a loss?
“We are running at a profit. We’re an old business with money in the bank. Most business are sitting at 5-8 per cent, is what I hear.”
Are people still tipping?
“Yes they are, but my restaurant’s in a corporate area of town.”
What measures are you taking to make ends meet?
“I still do everything I have always done. You may not overload the salad, or reduce garnishes. We haven’t made too many changes – and we still don’t charge for bread.”
What needs to change to stop restaurants from closing?
“I’ve lived through all of the challenges (in hospitality). You have to be true to yourself. Businesses need to look inside their own home and look at how to manage it. Reduced menu items means less wastage, less people in the kitchen.”
ANONYMOUS CHEF, RESTAURATEUR
40+ years industry
What are the biggest issues impacting the industry?
“The rising cost of produce, labour and guests feeling the pinch at home. We’re also paying more taxes and more on utilities … power and gas has gone up in the last five years.
“There is no point running a business if can’t make a profit. Is the bottom line narrowing? The simple answer is yes.”
Are you running at a profit, breaking even or a loss?
“Between 5-10 per cent profit.”
Are people still tipping?
“People are still tipping.”
What measures are you taking to make ends meet?
“We are responding to what’s changing in the market. You may take some frills out of the dishes. When I was young there was 25 components to a dish – now it’s not fashionable anymore. In some dishes you have to take less margins to stay in the marketplace. I’d like to think that’s few and far between, and we’ll offset with a cheaper food in another part of the menu.”
What needs to change to stop restaurants from closing?
“It’s time as an industry we stood together and charge the right money to survive. We need to understand the marketplace and not complain. If you want restaurants to be around, you have to join the party.”
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