Sydney, Australia – 1/08/2024 – Quantaco, a leading provider of integrated tech solutions for the hospitality industry, today released its FY24 Hospitality Industry Report, offering a comprehensive analysis of the industry’s performance over the past financial year. The report, which covers the period from July 2023 to June 2024, reveals key trends and insights that are essential for stakeholders in the hospitality sector.
Key Highlights from the Report:
- Revenue Growth: The hospitality industry saw a robust 7% increase in total weekly sales compared to the previous financial year. Food sales grew by 11%, gaming turnover surged by 26%, and beverage sales increased by 7%.
- Softening in the Last Quarter: Despite overall strong trade, the final quarter of the year showed a softening in sales, with the first comparative dip in sales below the previous year seen in the month of June.
- Rising Expenses: Profitability, as measured by EBITDAR, decreased by 1% due to rising costs, including a 27% increase in utilities and over 30% in insurance costs.
- Labour Costs: Labour costs have risen, with wages now accounting for 20.8% of total sales, reflecting the increases of 5.75% noticeably from the last award increase in July 2023.
- Gaming: while the gaming figure shows high growth, deeper analysis of the dataset shows quite a variance across groups with some outperforming the median and others not.
Mitch Stone, Executive Director, Platform Services and Business Advisory at Quantaco, commented on the findings: “The past financial year has been a testament to the resilience and adaptability of the hospitality industry. While we have seen significant revenue growth, the rising costs have impacted profitability. It is crucial for operators to focus on efficiency and cost management to navigate these challenges successfully.”
Current Market Observations:
- Trends in Food and Beverage Sales: There has been a slight decline in food and beverage sales in the last Quarter, mirroring broader consumer spending trends. However, pubs have the flexibility to adjust their food offerings to attract a diverse customer base.
- Diversification and Resilience: Pubs benefit from a diversified asset base including gaming, food and beverage, retail operations, and accommodation. This diversification helps mitigate risks associated with the volatility of any single revenue stream, providing a financial buffer during challenging times.
Leveraging Industry Knowledge for Financial Health:
Our all-in-one platform integrates critical business functions, enabling operators to streamline processes, reduce costs, and optimise their business strategies. Quantaco professional services and comprehensive reports are designed to arm hospitality operators with the insights and tools necessary to navigate the complexities of the industry. By offering detailed analysis and actionable recommendations, we empower our clients to make informed decisions that enhance their financial health and operational performance.
About Quantaco:
Quantaco is dedicated to helping hospitality stakeholders improve their performance through its all-in-one platform and hospitality-focused services. With a comprehensive suite of accounting services and a unique platform tailored specifically for the hospitality industry, Quantaco provides clients with critical business insights, operational efficiency, and cost-saving solutions.
For more information about the FY24 Hospitality Industry Report and to access the full report, visit the Quantaco website.