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Wage Hikes Hit Hospitality Hard
Description
Wages in hospitality just got a major bump—up 4.75% thanks to the Fair Work Commission—but for restaurants and cafes, especially in South Australia, the real pain point is penalty rates. Those extra charges for evenings, weekends, and holidays multiply the wage hike, potentially costing businesses up to $57 a week—or more—per worker. With skyrocketing food, energy, and insurance costs, plus cautious customers, venues are under serious pressure. The Restaurant and Catering Association argues this outdated system doesn’t fit modern operations and is pushing for a simpler, capped increase—or even a flat dollar amount—to avoid compounding costs. They’re now analyzing the full impact and preparing members for July’s new rates. Next time you grab a coffee or dinner, know these businesses are juggling rising costs on every front.
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