Restaurant and Catering Association spotlights hospitality sector staffing crisis and demands urgent reform

The Restaurant and Catering Association has highlighted that with two thirds of hospitality businesses that operated in 2020 no longer trading, there is a need for urgent reform. At a high-level Welcome Back to Parliament event at Parliament House in Canberra, Chair of Policy and Advocacy for the FoodService Association Australia (FSAA) and National President of Restaurant and Catering Australia (R&CA), John Hart delivered a direct and urgent call to the Federal Government: “Act now to save Australia’s struggling hospitality sector.”

Hart outlined the stark reality noting “Two thirds of hospitality businesses that operated in 2020 are no longer trading. We now have half the number of venues we had five years ago. This is not a slowdown. This is a structural collapse.”

The event, co-sponsored by FSAA and R&CA, brought together policymakers, business leaders and peak bodies to demonstrate the alignment between foodservice operators and their supply partners. It marked a shift in how the industry is advocating for long-overdue policy reform.

Hart congratulated the Australian Government on its re-election and acknowledged the role of the Australian Chamber of Commerce and Industry (ACCI) in creating a timely platform for engagement.

He painted a picture of communities hollowed out by closed venues and boarded-up restaurants adding “while revenue numbers are climbing, it is a false signal. The increase stems from rising menu prices, not an increase in customers. We are looking at profitless growth and unsustainable pressure on operators.

“This is not alarmist. It is visible on every main street. We need reforms, and we need them now.”

The joint FSAA and R&CA event signalled a stronger-than-ever connection between suppliers and operators, united in their push for practical, industry-led solutions. Hart also acknowledged the support of fellow hospitality advocates, including the Australian Hotels Association and Accommodation Australia.

Programs like the Economic Reform Roundtable were highlighted as vital pathways for industry input, with Hart urging all sides of politics to prioritise collaboration over conflict.

Hart emphasised “this is not the time for entrenched positions. It is about economic survival, jobs, and the health of our communities.”

Hart closed by recognising R&CA Chief Executive Suresh Manickam and FSAA Chief Executive Minnie Constan and issued a clear message to policymakers: “You will hear more from us. This is too important to get wrong. The future of foodservice in Australia is in your hands.

The Restaurant and Catering Association is the national industry body representing over 57,000 cafés, restaurants and catering businesses across Australia. R&CA advocates on behalf of its members to the government, supports industry development, and champions a sustainable and prosperous hospitality sector.

Images. Hospitality Sector at Welcome Back to Parliament event at Parliament House in Canberra