Fellinis to trim the fat

 

CELEBRATED restaurateur Tony Percuoco is concerned.
By 2010, the multi award-winning chef will have to swing the axe to chop 15 per cent off operating costs at his landmark Fellinis restaurant. That means a portion of his 25 staff will also be sacked.
Percuoco says the Rudd Government industrial reforms will have a dire effect on restaurants across the board – from small eateries with 10 staff, to larger franchise chains.
“I’m working on projections for 2010 and 2011 and I’m anticipating cutting 15 per cent, which means some staff will have to go. The changes will also mean a 15 to 20 per cent increase in menu prices,” he says.
“A lot of restaurants are still playing catch up with the introduction of the GST in 2000.
We had to slowly do it and wore the GST costs for six months after on top of an increase of levy costs on deliveries.
Percuoco says with rental increases of around 4 per cent each year, some businesses will be forced to shut shop. He recently signed a 10-year lease at his existing premises which boasts sweeping views of the marina and Broadwater.
“I have a lot of confidence in the brand, it’s a brand that I could take anywhere on the Coast,” he says.
“The reality is that the cost of products increases twice a year. We have to pass that down, but we have to be careful, we don’t want to price ourselves out of the market.
“Our aim is to keep people employed. I have a workers’ agreement with my staff and after signing AWAs, conditions have improved slightly.
“I hate the fact some of them will have to go. There are a lot of benefits working in the restaurant industry and you shouldn’t be penalised for it.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths Group (ASX: WOW) has today thrown its hat in the ring to...

Shopping Centres Australasia launches $750m metro convenience retail JV with GIC

Shopping Centres Australasia launches $750m metro convenience retail JV with GIC

After making its fortunes with suburban malls anchored by blue-chip...

Will Australia follow Europe into a fourth COVID wave?

Will Australia follow Europe into a fourth COVID wave?

Europe is facing a fourth wave of COVID. As we watch on, it is reas...

James Halliday's Junovate teams up with Entertainment Group for direct-to-consumer wine marketplace

James Halliday's Junovate teams up with Entertainment Group for direct-to-consumer wine marketplace

Sydney-based Entertainment Group, a company whose discount coupon b...