How rising prices, staff shortages are affecting local businesses

Local hospitality venues have increased menu prices in recent months in a bid to combat rising prices, new data has revealed.

Co-owner of The Captains of Aireys, Johanna Nett, said staff shortages is still the biggest challenge her local business in Aireys Inlet is facing. Picture: Mark Wilson

Local hospitality venues have increased menu prices to combat inflation as staff shortages are still causing headaches for businesses, new data has revealed.

The Captain of Aireys restaurant co-owner Johanna Natt said her business had been forced to increase its menu item prices by about $2 before the peak summer period to combat the rising cost of produce.

“Some goods have tripled in price over about three or four years,” Ms Natt said.

“It was an inevitable thing that had to happen and most people are pretty understanding.”

Data from a recent hospitality report by e-commerce business Lightspeed found 70 per cent of Victoria hospitality venues have increased prices on their menu to help offset inflation.

Co-owner of The Captains of Aireys, Johanna Nett, said staff shortages is still the biggest challenge her local business in Aireys Inlet is facing. Picture: Mark Wilson

Ms Natt said while her business has not seen a decrease in the number of customers coming through the door, patrons were more conscious of their spending when eating out.

“It’s been really busy throughout the summer period with a lot more Australian travellers as well as international travellers,” she said.

“We have noticed people are more conscious of how much they are spending and when they are spending it.”

The data also found 60 per cent of pubs and bars were working with a reduced number of staff than needed.

“Finding staff to help run the business throughout the year is always a challenge,” she said.

“We have good staff retention but there is still not enough (staff) to get us through and with inflation affecting everything … that is adding to the challenge.”

Ms Natt said there are “not many” long-term rental options for housing in the Aireys Inlet area which added to the difficulties of finding and retaining staff members for her business.

The data revealed 50 per cent of hospitality venues have implemented new technology to help streamline processes throughout the restaurant and combat the challenges of staff shortages.

Ms Natt said her small businesses has started using online booking and ordering systems in the past year to help reduce pressure on staff.

“It was basically a full-time job for someone to be just answering the phone and doing the ordering and payments at the desk,” she said.

“We put in quite a few different procedures throughout the year to try and combat the shortages.

“It has helped to streamline the process … (and) really made a difference for us.”

Ms Natt encouraged local customers to continue to support small businesses during these difficult economic times.

“Everybody is in the same boat and we are all trying to survive,” she said.

Originally published as How rising prices, staff shortages are affecting local businesses