Dining costs skyrocket in Victoria, but there is no profiteering
Victorian diners are paying nine per cent more for their meals that they were a year ago, this is nearly triple the cost in New South Wales, Queensland and Tasmanian venues.
South Australia was the only other state or territory to record a rise that substantial.
Despite the much higher prices, the industry says it is not profiteering.
Data company Lightspeed, which works with more than 10,000 Australian hospitality venues, released figures showing that South Australian diners are spending about $63, while
Victoria’s average bill stood at $52.52 in March 2024, compared to $50 in Queensland, $50.66 in NSW, $44 in WA, $43.79 in the ACT and just $33.38 in the NT.
One Melbourne café now charges $6.50 for a basic flat white.
Lightspeed’s “state of hospitality” report pointed to rising food prices as a key reason for the increases. It stated 29 per cent of hospitality operators had raised prices by between 27 to 39 per cent over the past year.
Melbourne CBD icon Gingerboy closed recently, citing low spending diners and rising cost of food and beverages.
Chef and owner Teage Ezard told The Herald Sun, “We have to raise our prices, but the public don’t want us to raise our prices. We need to and there needs to be a conversation around that.
“Restaurants will not survive charging what they are charging.
“That perception (of not spending $50 on mains) needs to change. We should be charging $50 or more on mains.”
Restaurant and Catering Australia chief Suresh Manickam believes Victoria’s cost of living pressures are taking their toll on restaurant owners. Generally, speaking there are large increases in operating costs.
“If you think of things like energy and energy use — and these guys are very large consumers of energy — that has gone up. The cost of labour has gone up since this time last year also and we have an absolute skills shortage, so that’s having an impact in terms of securing labour and cost of labour.
Manickam said no one is profiteering.
“None of our sector is profiteering off this, they are just simply passing on the costs of doing business.”
Jonathan Jackson, 15th April 2024
