Hospitality operators in Brisbane facing numerous threats to their bottom line
Hospitality businesses in Brisbane are facing an uphill battle as they get buffeted by headwinds from all sides.
A “perfect storm” of financial challenges and digital disruption are bearing down on the city’s hospitality operators, according to Queensland University of Technology's Dr Gary Mortimer, from the School of Advertising, Marketing and Public Relations.
“They are facing the emergence of indirect competition, increased costs of doing business, a reduction in diners’ disposable incomes, and a trend where consumers are constantly looking for something new,” he told the City North News.
“There are increasing threats from indirect competitors now, too, while they are trying to battle other (direct competitor) players in the marketplace,” he said.
“There’s the emergence of meal kit companies, Marley Spoon, and Hello Fresh and, more recently, Youfoodz, where consumers can still have their meals delivered to them but they can also participate in the cooking experience.”
He also cited food trucks as another threat to the traditional bricks and mortar operator, while delivery companies such as UberEats and Deliveroo were also keeping people at home.
To combat the numerous threats, Mortimer said businesses needed to understand what their value proposition is.
“And ultimately each cafe or bistro should ask the question: Why would a diner choose me over the alternatives?”
The warning follows a number of high-profile hospitality businesses shutting their doors including high-end food hall Mercado, Esquire, Madame Rouge, The Survey Co, and Mariosarti to name but a few.
Sheridan Randall, 15th May 2019
