Rising costs have driven the cost of a pint of craft beer up to as much as $20 at some Australian pubs.
Australian Hoteliers Association South Australia branch head Anna Moeller told ABC Radio this week: “If you’re looking at a high-end craft beer you’re probably looking around the $20 mark.
“But if you’re looking at something more standard you’re probably down around the $12, $13 [mark].”
The discussion followed TV host Andrew Costello posting an image of two drinks at an undisclosed bar to his Instagram account with the caption: “A rose and a pint was $42.50 at a bar tonight.”
“You have to feel for bars competing with wage increases, product increases, and taxes … but $42.50?” the travel and lifestyle he wrote.
Moeller said the reason for the high cost of Costello’s order might have been due to public holiday rates, but rising costs for insurance, wages, energy, and products were all contributing to stress in the hospitality sector.
“I think there’s a cost of living crisis and business isn’t immune to that,” she said.
“We know that hotels are being squeezed at the moment, their profit margins are being squeezed.”
One in every 13 Australian hospitality businesses faces failure within the next 12 months according to Australian credit reporting firm CreditorWatch.
It found 7.45% of food and beverage businesses are forecast to fail as discretionary spending wanes.
Business-to-business payment defaults have also hit a record high.
A new Australian Restaurant and Cafe Association (ARCA) launched earlier this month to try and tackle some of the challenges the hospitality industry is facing.
“It has certainly been one of the hardest years for hospitality,” said ARCA CEO Wes Lambert.
“Many businesses have said that they’re closing because times are harder than they’ve ever been.”
Spending rises in off-premise, declines in on-premise