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Outsource as much as you can: RCA

Restaurant and Catering Australia is encouraging members to automate and outsource as much as possible to save money in the face of unsustainable labour costs.

Restaurant and Catering Australia will next week release the results of a survey showing wages and staff costs account for about 45 per cent of business expenses for members.

“We’re saying outsource everything you possibly can,” RCA chief executive John Hart said. “Whether that’s taking reservations, cleaning the kitchen, cleaning the restaurant, laundry.

“We’re also trying to get them to invest in the cost of value-added food product as opposed to spending money on labour. So if they can buy in pre-prepared things that cost them less in kitchen labour then we’re trying to convince them to do that as well.”

Mr Hart acknowledged that automating processes and outsourcing tasks would reduce jobs but he insists restauranteurs no longer had any choice.

The 2014 Industry Benchmarking Report, based on the 2012-13 financial results of 340 members, found 12.9 per cent of respondents close on both Sundays and public holidays due to the cost of penalty rates on these days.

“For a sector dominated by small business, labour costs are -unsustain¬able and are likely to result in restaurant doors closing or staff hours being reduced.”

The FWC decision cut Sunday rates from 175 per cent of normal rates to 150 per cent. The ruling applies to lower-skilled casual workers such as waiters, customer service staff and kitchen hands.

According to the report, 71 per cent of businesses had reduced staff hours, while a further 69.5 per cent of respondents indicated the business owner now works at weekends.

Restaurant and Catering Australia has applied to the federal government for an industry-wide labour agreement that would free up tourism and hospitality businesses to employ chefs, cooks and other staff. Mr Hart said chefs, cooks and restaurant managers continued to be the most in-demand positions.

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