How hard will interest rate rises hit hospitality?

As the Reserve Bank rate rise hits Australians, new research reveals that the hospitality industry will be the first to suffer, with Aussies cutting back on eating out at restaurants and ordering takeaway food. 

A survey was conducted by market insights firm Toluna before the increase was announced. 

They surveyed 1000 Australians on what they would cut back on to save money, with 32 per cent saying they would stop visiting restaurants and 28 per cent saying they would reduce their takeaway consumption. 

A further 18 per cent said they would reduce their visits to pubs and bars and 17 per cent would reduce their visits to cinemas. 

Data released by the Australian Bureau of Statistics (ABS) last week showed more than 75 per cent of Accommodation and Food Services businesses faced increasing costs. This sector’s costs are more than any other sector in the economy. 

CEO of Restaurant & Catering Australia, Wes Lambert, said the hospitality sector needed support from Australians “more than ever”. 

“Given the devastating last two years that the hospitality industry in Australia has faced, the last thing our 55,000 restaurants, cafes and caterers plus their 350,000 employees need is to lose business critical to their recovery off the back of multiple interest rate increases,” he said. 

Restaurant & Catering Australia will “continue to work with government to find ways to stimulate business so we can keep offering Australia and the world the best hospitality experience,” Lambert said.

Irit Jackson, 4^th May 2022