Restaurant and Catering Australia $1.8M in debt, with financial survival in doubt
Restaurant and Catering Australia (R&CA) owes $1.8 million to creditors and is fighting to stay afloat.
R&CA represents 58,000 members and is Australia’s peak restaurant, cafes and catering body: it’s struggles will be felt industry wide.
CEO Belinda Clarke has resigned in the turmoil, with the R&CA board now searching for its third CEO in just six months.
The board itself is also under fire, with calls for its removal at the November AGM made loud and clear. Directors are accused of ignoring the financial warning signs.
To dig itself out of its hole, the not-for-profit organisation, has commercialised part of its operation. R&CA been given the green light to split the business in two.
Operational aspects, including sponsorship, membership and communications will be handled by advertising services company Wink, while former independent director Kristie Atkins, will “consult and manage” R&CA as a commercial business.
R&CA’s division into two branches has been criticised by former staff members who feel its core responsibilities of advocating, supporting and listening to members will be pushed aside.
The Australian reports the $1.8 million debt, which sources say is more than half of R&CA’s yearly turnover of $3.5 million, has led to questions over financial viability and the need for corporate restructure.
While the pandemic has been blamed in part for R&CA’s financial woes, inside sources told The Australian former CEO Wes Lambert misled the board about the organisation’s financial health.
Lambert has declined to comment about the allegations. He left the organisation in May 2022.
Outgoing CEO Belinda Clarke said, “When you love hospitality as much as I do, making the decision to step down from your dream role is incredibly difficult.
“Having my team, members and partners that have been beyond incredible in their support adds to the challenge of making the decision, but ultimately sometimes you just know the time is right to move on, and there are many, many ways that I’m already planning on supporting our industry in the near future that I can’t wait to explore.”
COO Laura McLachlan has also resigned.
R&CA chairman Mike Palmer told The Australian, “R&CA continues to do amazing work in supporting 58,000 restaurants, cafes and catering businesses and looks forward to ratifying leadership decisions at next week’s AGM in Brisbane.”
Jonathan Jackson - 22-11-22
