There is no doubt that higher interest rates and general price inflation have started to bite also in the hospitality market with Australians TRADING DOWN in their choice of outlet; not going out as often and not spending as much each time.
However, that being said, we hasten to say that it is not as bad as some general economists make out when it comes to us all dining out in current economic circumstances nor is it correct when we from time to time now see in the media foodservice operators blaming market conditions and inflation when they close down their outlet permanently. It simply does not equate.
We had the same phenomenon at the beginning of the pandemic, the first outlets that closed permanently early in the first national lockdown were already in trouble for whatever reason and would most likely have closed anyway. We are not saying there are not challenges out there for the commercial foodservice operators, but fact remains that the Australian Foodservice market rebounded strongly in 2023, inching closer to 2019 levels.
Hence, both the 2023 market recovery and now a somewhat easing of the post-pandemic market growth, are evident in the FOODSERVICE DOLLAR development up until the beginning of this year.