Retail trade data released recently by the ABS showed that turnover for restaurants and cafes was up 12 per cent on 2011, albeit with closure rates for the industry at an all-time high.
Turnover for the industry in June 2012 was up, 12 per cent on June 2011 at $1.573 billion.
Nationwide FY11/12 restaurant, cafe and catering turnover was 6 per cent up on the FY10/11 at $19.1 billion brought about by small movements in most states but a nine per cent decline in Victoria, a 15 per cent lift in NSW and a 30 per cent lift in WA.
Restaurant & Catering CEO John Hart commented: "This result shows that the industry is still performing well from a revenue perspective but is suffering terribly under the weight of huge increases in the cost of wages."
Although these results show some growth, a tough climate for restaurant and catering businesses still exists. Wage costs are estimated to be 45 per cent of revenue which makes the average restaurant, cafe or catering businesses profit margins low.
The industry is also seeing issues such as shortages of skilled workers, decreases in average spend and uncertainty of the effects of the pending Carbon Tax detracting from their bottom line.
Source: Restaurant & Catering Australia