Local businesses in spotlight as hospitality trends and challenges 2022 revealed

Neighbourhoods will be the ongoing focus for the hospitality sector, in particular for cafes and coffee shops. That’s according to the latest report which looks at the recent trading conditions and upcoming challenges across the food and beverage industry.

The report Staying Open: Future-Proofing Aussie Hospitality from shift-work platform, Deputy, is an analysis of more than 12 million shifts between January 2020 and October 2021 with results compared by generation, age, state and industry sector.

What the report confirms is that cafes and coffee shops have proved resilient and continued to innovate and trade throughout the pandemic. In these sectors, shift work hours have improved and remained significantly higher than employment levels before the pandemic.

Similarly, restaurants operating 80 per cent below pre-pandemic levels in April 2020 have rocketed to 80 per cent above these levels in May 2021.

Minimal restrictions and a surge in domestic travel account for the recovery, however these gains were countered by the recent 2021 lockdowns.

So, what can you expect if you are about to buy coffee shop, fast food restaurant or food and beverage franchise?

Labour costs and location will be important considerations for new franchisees as will the tech tools franchisors provide.

Hospitality trends and challenges

  • Talent spotting. Now as the return to post-lockdown trade picks up and there’s a demand for staff, rising wages and employment benefits are on the menu for hospitality bosses. Critical worker shortages are looming in the hospitality sector with an expected 140,000 new jobs coming up in the next five years. The competition to attract and retain talent will be unprecedented and the worker will wield more power in the bargaining process.
  • Think local, act local. Remote working in residential neighbourhoods has revived support for local businesses and spending on local food and entertainment is enjoying a boom. With the focus on community spaces, the reduction in city workers will have a long term impact on Sydney and Melbourne CBDs.
  • Tech to the rescue. The hospitality sector will embrace working with technology to help overcome the labour shortage. By using technology to properly and easily manage back-end business operations, hospitality workers can focus on delivering the human connection and customer experience that’s most important.
  • Local tourism boost. With international borders reopening, a boom in tourism will likely support the recovery of hospitality operators in the near term. Government interventions to stimulate the domestic tourism industry are likely to benefit the hospitality industry.
  • Want to find a food franchise? Check out food and beverage opportunities.

This story first appeared on our sister publication Inside Franchise Business