Restaurants, pubs and cafes are using desperate measures to lure staff as a workforce shortage threatens to increase food and drink prices.
Hospitality venues across Australia are offering cash bonus incentives as they struggle with an industry shortage of skilled workers.
Victoria is the worst hit by the shortage, where hospitality positions accounted for more than 2.6 per cent of all Victorian jobs advertised in October, compared to the 2.2 per cent nationwide average.
Hospitality giant The Australian Venue Co, which runs more than 150 bars across the country has offered job seekers a $1,000 sign-on bonus and an extra $2,000 if they’re still employed after three months.
The coronavirus pandemic saw such businesses forced to close, but they’re now struggling to find staff – with foreign workers locked out of the country and thousands of Australians happily receiving JobKeeper.
Hospitality businesses are struggling with labour shortages as they recover from the pandemic. Pictured is a cafe owner in Melbourne preparing coffees for customers
The hospitality giant is looking for cooks to fill a host of chef positions at its iconic Perth venues, including the Victoria Park Hotel.
‘Candidates who apply for a position through this advertisement and are successful in gaining permanent employment with AVC between November 1 2020 and December 31 2020 will be eligible for a $1000 sign-on bonus upon commencement, and a $2000 retention bonus payable at three months continuous employment,’ the advertisement on job website Seek states.
The Australian Venue Co has other positions across the nation with the same bonus incentives, include bar staff in Melbourne, entry level bar and gaming staff in Brisbane and Rockhampton and chefs on Queensland’s Sunshine Coast.
Melburnians are pictured flocking to bars, restaurants and cafes after months of lockdown. The extra demand could see food and drink prices increase as venues struggle to find staff (pictured, Melbourne on November 1 after restrictions eased)
Australian Venue Co is offering jobseekers a $1000 sign-on bonus and an extra $2000 if they’re still employed after three months. Pictured is a job ad for chefs in Perth
Australian Hotels Association Victorian David Canny said the labour shortage has hit many hospitality businesses in Melbourne hard with venues closed for days due to being understaffed.
He said the extra demand of patrons dining out after months of lockdown could result in a price surge and drive up some wages by up to 20 per cent.
‘Some operators will see overpaying as a way of survival, getting through, filling rosters and being able to give people time off,’ Mr Canny told The Age.
‘Venues wouldn’t be able to absorb that [cost]… you could see prices forced up, absolutely.’
He called on the federal government to allow jobseekers take up work without affecting their JobKeeper entitlements.
‘That would incentivise people to get off the couch and come do their 15 or 20 hours a week,’ Mr Canny added.
‘It’s that top-up staff that no one can seem to find …. which would normally be from that pool of international backpackers and students, and we don’t have any.’
Perth venue Victoria Park Hotel (pictured) is one of many venues across Australia offering chef positions that come with a $1000 sign-on bonus
Matt Lanigan, owner of South Yarra cafe Lucky Penny has never found it so hard to find staff in his 23 years in the industry.
‘People who were professional hospitality workers are taking jobs as COVID concierges – even just for weekend work it has been hard, because the casual workers in the past are on JobKeeper from their previous work so they don’t need the extra money,’ he told NCA NewsWire.
‘Demand went from 10 people at a time to no limit within a month and everyone is booking at same time – demand for employees is far higher than how much supply is in the market right now.’
There are fears a staff shortage in the hospitality industry could result in food and drink prices going up. Pictured are revellers at Sydney’s Coogee Bay Hotel recently
In New South Wales, the state government’s $100 ‘Dine & Discover’ voucher scheme has been delayed until the new year as participating venues were already too busy in lead up to the festive season.
The scheme, worth $500million, was the major move in November’s state budget aimed at kick-starting the state’s economy back into gear following months of stifling coronavirus restrictions.
‘The feedback from many is that they are already booked out over the festive season and would benefit from the stimulus program when it quietens down,’ customer services minister Victor Dominello said.
‘We are working around the clock to ensure that the Dine & Discover NSW application and redemption process is seamless, secure and reliable for individuals and businesses alike.’
Sydney businesses are hoping hospitality vouchers will help boost their bottom lines under a ‘Dine and Discover’ program (pictured: patrons at the Coogee Bay Hotel in November)
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