Hospitality specialist Quantaco has released a report benchmarking industry performance for Q3 and offering insights for Australian pubs.
Quantaco is an advisory firm that’s sole focus is on hospitality, employing a curated combination of industry-specific technology and people.
This report covers January to March 2023 and is part of a larger annual assessment. Noting limited COVID-related impacts, increased consumer confidence and renewed tourism, the industry’s performance in the first three months of the year has been “positive” – particularly when considered against the backdrop of inflation and economic uncertainty.
The company reports that Australian hospitality has demonstrated “remarkable resilience” and seeing strong sales growth compared to the same period in 2022, suggests the period marks a significant milestone in the journey toward recovery.
A key factor in the rebound is said to be hotels’ ability to adapt to evolving consumer preferences.
“As consumers slowly made their way out of their homes, business gradually improved, resulting in higher sales,” explains Quantaco.
Highlights of the Q3 report detail a 13 per cent increase in weekly sales in the quarter compared to the prior year, bolstered by an 18 per cent growth across the bar, and hungry 34 per cent increase in food sales.
But Q3 also found a regression to prior activity in gaming, without the drivers of lockdowns and pent-up demand, ending four per cent down on 2022.
While wages as a percentage of sales recorded zero increase across the period, this figure may not reflect true wage growth after the high absenteeism and staffing issues of last year.
And while gross sales are up, this has not typically transferred to the bottom line, with the report stipulating overall profitability has remained flat, and no growth, as measured by EBITDAR.
Quantaco advises operators to consider externalities and changes in the cost of business and focus on maximising operational efficiency, which furthers the argument for a data-driven approach to decisions.
The full report can be downloaded HERE.
