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The Forum > General Discussion > Coffe shops are not the victims, the restaurants are.

Coffe shops are not the victims, the restaurants are.

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So Rache, how do you explain restaurants, some very good ones, being closed on Sundays. Remembering they charge $15 for a bowl of soup, while the local cafe charges say $6.50?
Posted by rehctub, Wednesday, 22 March 2017 1:08:48 PM
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Butch, what about rent? A major cost for most retailers, how does 5 or 6 days trading compare to 7 day. Trading 12 hours a day compare to standard 8? How does that fit into your formula?
Posted by Paul1405, Wednesday, 22 March 2017 2:04:36 PM
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Paul. Most leases today have what are referred to as 'core trading hours' and they are usually 8am till 5pm Mon to Sat and 8 till 9 Thurs. Most small businesses struggle on Thursdays due to the mandetory extended hours.

Centres do this so they can charge additional rent/outgoings so if one chooses to trade outside these hours, they are charged additional fees so a 12 our day costs extra, as do most Sundays although some centres are now incorporating Sundays into a normal week. Of cause centre managements are not available outside your regular 9-5 Mon to Fri.

Where is Toni? He asked me a question, i replied, and asked him one, but he is nowhere to be seen. Nothing unusual on this forum i might add.
Posted by rehctub, Thursday, 23 March 2017 6:41:05 AM
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rechtub,

Maybe some restaurants are closed on Sunday because (as you say) "they charge $15 for a bowl of soup, while the local cafe charges say $6.50".

Ask their customers.
They don't want to buy or can't afford to buy.
It's always been that way and always will.

Both businesses were subject to the same penalty rates.
Posted by rache, Thursday, 23 March 2017 9:15:54 PM
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rache, you just simply dont get it do you.

A coffee costs about .60 cents to make or 12%, and the wage component is fairly low whereas most restaurant meals cost around 30% nd the wage componant is much higher due to preparation, cooking and wait staff costs. Around 35% on normal rates.

So you can double the wages of a coffee shop and still make a living, but doubling the wages of a restaurant results in a loss to the owner, to the tune of about $10 in every $100 takings for the day. This is why many are now closed on Sundays.
Posted by rehctub, Thursday, 23 March 2017 9:23:57 PM
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I DO get what you're trying to say but still I dispute the wages component of a restaurant is higher than the ingredients they use and their overheads. That's where the real cost comes in. The food preparation industry is an expensive one to operate and not just because of wages.

Anyway, I also would have thought weekends would be the busiest time for restaurants while weekdays are busier for coffee shops.
Restaurants also tend to open later and close later already so working hours should not be an issue. Personally I've never seen a restaurant open 9am to 5pm or a coffee shop still open at 10pm.

Because of those odd working hours I would also be surprised to see most restaurant staff being paid on an award or EA basis.

Maybe we should use the US model for hospitality staff - pay them $7 per hour and let them beg for tips to make up the rest?

The greatest economic growth in Australia's history came after WW2 when incoming immigrants and population growth required large scale infrastructure and housing construction.

The workforce was then heavily unionised and people were paid fairly and paid well and the money they earned was then spent entirely back into the local economy.

Forced austerity always ends in economic decline - short term profit but long term losses.
Posted by rache, Friday, 24 March 2017 7:08:37 PM
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