Operational expenses, labor costs, & customer satisfaction — how can F&B businesses find a balance in between?
While food may be a comfort amidst news of inflation, F&B businesses are currently grappling with the challenge of rising wages.
Rising wages have emerged as a pressing concern in the F&B industry worldwide. Factors such as changes in labor laws, increasing living costs, and shifts in societal expectations have contributed to this phenomenon.
In recent years, Australia has witnessed a gradual increase in minimum wages, intensifying the labor cost burden for F&B businesses in the country. Some businesses absorb the increased costs, while others pass them onto consumers. However, striking a balance between competitive pricing and maintaining profitability can be challenging.
Higher wages have also affected workforce management practices within the F&B industry. Businesses may face challenges in attracting and retaining skilled staff due to increased competition, while needing to downsize to keep consumers satisfied through more affordable pricing at the cost of less manpower.