Rise of Tony Abbott a downer for restaurant takings as budget puts diners off their dinner
TONY Abbott is putting people off their food, with research from the restaurant booking website Dimmi showing a sharp fall in eating out following last year’s federal election and in the lead-up to the May budget.
Data collected from more than 2500 restaurants over the past year showed restaurant bookings plummeted in September to be about 15 per cent below the level of a year before.
Bookings fell sharply again in March as details began to emerge of cuts to welfare and family benefits in the forthcoming federal budget.
Those who did continue to eat out cut back on spending, with the average bill coming to $53.50 in the June quarter of 2014, down from $58.50 in 2011.
Dimmi chief executive Stevan Premutico said the restaurant sector was highly sensitive to shifts in consumer sentiment, which was smashed to its lowest point in nearly three years by the May budget.
“After the election and around the budget, things just dropped off a cliff — as soon as Tony Abbott is on TV making a statement that affects families, people stop spending,” Mr Premutico said.
Restaurateur Erez Gordon, who runs venues in Sydney and Melbourne, said customer numbers had been down since the budget in May.
Those who did come in were ordering fewer drinks or even cutting out an entire course, he said.
“Strong weekends are less predictable, we’ve had quieter Fridays unexpectedly and overall spend per head is down,” Mr Gordon said yesterday at his Surry Hills restaurant, Bishop Sessa, in Sydney.
Financial caution meant diners were less likely to try new venues, so he was working harder to keep existing customers coming back.
“People are a little bit more cautious about their money so they are likely to take fewer risks ... we try to maintain our share of it by making us the first option for customers,” he said.
News of the restaurant downturn follows earnings downgrades from a number of discretionary retailers including Pacific Brands, Flight Centre, Metcash and The Reject Shop, all of which reported a drop in spending after the budget.
Mr Premutico said restaurants are also sweating over the introduction of PIN-only verification of credit-card transactions from August 1, as customers are less likely to leave a tip if they could not simply write down a dollar amount while signing a docket.
Dimmi figures showed tips added an average of 2 per cent to a restaurant’s takings and, with the money generally going straight to staff, Mr Premutico said restaurateurs would be under pressure to make up the difference.
Mr Gordon confirmed that customers verifying their credit cards with a PIN were poor tippers, and the changeover could make it harder to attract decent staff.
“Restaurants that attract higher tips will attract better staff and we’re always keen to attract the best quality,” he said.
Source: The Australian - July 25 2014
