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.”

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

REA Group buys full stake in end-to-end property sales interface Realtair

REA Group buys full stake in end-to-end property sales interface Realtair

Realestate.com.au operator REA Group (ASX: REA) has acquired the re...

HESTA to pump $250m into new global fund with Stafford Capital Partners

HESTA to pump $250m into new global fund with Stafford Capital Partners

Strong returns over the past three years from a $200 million global...

Pacific Smiles to extend nib dental offering to all centres

Pacific Smiles to extend nib dental offering to all centres

Takeover target Pacific Smiles (ASX: PSQ) may see its clinics filli...

The Chemist Warehouse deal is a sideshow: pharmacies are ripe for bigger disruption

The Chemist Warehouse deal is a sideshow: pharmacies are ripe for bigger disruption

There’s something curious about the proposed merger between C...