With almost 50 percent of restaurants unprofitable, the restaurant industry is in crisis, The Australian reports.
An explosion in wage costs over the past two years has 1000 venues set to close their doors in 2013, the Restaurant and Catering Association estimated.
“There’s a systemic problem here — it costs more to run a business in this sector than you get in returns. And it’s worse at the top end. Fifty per cent would be in a net-loss situation,” said John Hart, Restaurant and Catering Association chief executive.
Australian Taxation Office data revealed that there are 37,700 restaurants, cafes and catering businesses with ABN registrations – 1900 fewer than five years ago.
Big names that have been felled by the crisis so far include Justin North’s Becasse, legendary Sydney restaurant Bilson’s and Gordon Ramsay’s Melbourne restaurant Maze.
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