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The effect of penalty rates on staffing, opening hours and profitability in Australian restaurants and cafés A random telephone poll of 1,000 restaurant and café owners and managers, conducted by Jetty Research on behalf of the Restaurant and Catering Industry Association Final report dated May 19 th 2015
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Page 1: Theeffect$of$penalty$rates$on$ staffing,$opening$hoursand ...89ecbdc9add10a8b48cc... · Theeffect$of$penalty$rates$on$ staffing,$opening$hoursand$profitability$in$ Australian$restaurants$and$cafés$

     

The  effect  of  penalty  rates  on  staffing,  opening  hours  and  profitability  in  

Australian  restaurants  and  cafés          

       

A  random  telephone  poll  of  1,000  restaurant  and  café  owners  and  managers,  conducted  by  Jetty  Research  on  

behalf  of  the  Restaurant  and  Catering  Industry  Association        

Final  report  dated  May  19th  2015        

     

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2  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

 

Table  of  Contents  DISCLAIMER  ..............................................................................................................................................................  3  

EXECUTIVE  SUMMARY  ...............................................................................................................................................  4  

INTRODUCTION  .........................................................................................................................................................  6  

BACKGROUND  ....................................................................................................................................................................  6  METHODOLOGY  ..................................................................................................................................................................  6  SAMPLING  ERROR  ...............................................................................................................................................................  7  

Table  i:  Restaurants  and  cafes  in  Australia  ................................................................................................................  7  Table  ii:  How  sampling  error  varies  with  sample  and  population  size  .......................................................................  8  

PART  1:  RESPONDENT  CHARACTERISTICS  ..................................................................................................................  9  

Graph  1.1:  Geographic  spread  of  respondents  ..........................................................................................................  9  Graph  1.2:  Respondents  by  size  of  restaurant  ...........................................................................................................  9  Graph  1.3:  Metro/regional  split  ...............................................................................................................................  10  Graph  1.4:  Are  you  the  owner  or  manager  of  the  business?  ...................................................................................  10  

PART  2:  TRADING  PATTERNS  ...................................................................................................................................  11  

Graph  2.1:  Do  you  currently  open  on  any  of  the  following  days?  ............................................................................  11  Table  2.1:  Restaurants/cafes  open  on  Sundays  and/or  public  holidays,  by  state/territory  .....................................  11  Graph  2.2a:  Why  do  you  choose  to  open  on  Sundays  and/or  public  holidays?  (unprompted)  ................................  12  Graph  2.2b:  Why  do  you  choose  not  to  open  on  Sundays  and/or  public  holidays?  (unprompted)  ..........................  12  Graph  2.3:  Does  opening  on  a  Sunday  or  public  holiday  make  your  business  more  or  less  profitable  overall?  ......  13  Table  2.2:  Effect  on  profitability  of  Sunday/public  holiday  trading,  by  state/territory  ............................................  13  

PART  3:  IMPLICATIONS  OF  REDUCING  SUNDAY/PUBLIC  HOLIDAY  PAY  RATES  ..........................................................  14  

Graph  3.1:  If  weekend  penalty  rates  were  to  reduce,  which  of  the  following  changes  would  you  make  your  business?  .................................................................................................................................................................  14  Graph  3.2:  If  penalty  rates  were  reduced,  would  you  be  more  likely  to  open  on  Sundays  and  public  holidays?  .....  15  Graph  3.3:  Are  you  able  to  roughly  estimate  how  many  additional  staff  you  might  recruit  on  a  typical  Sunday/public  holiday?  ...........................................................................................................................................  16  Graph  3.4:  Are  you  able  to  roughly  estimate  how  many  additional  hours  you  might  open  for  on  a  typical  Sunday/public  holiday?  ...........................................................................................................................................  17  Table  3.1:  Breakdown  of  results  by  trading  patterns,  location  and  number  of  employees  .....................................  17  Table  3.2:  Extrapolation  of  additional  staff  numbers  and  hours  open  ....................................................................  18  

PART  4:  IMPLICATIONS  OF  RISING  LABOUR  COSTS  ...................................................................................................  19  

Graph  4.1:  If  labour  costs  continue  to  rise,  what  changes  will  you  make  to  your  business?  (unprompted)  ............  19  

APPENDIX1:  QUESTIONNAIRE  ..................................................................................................................................  20  

   

     

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3  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

 

Disclaimer    While  all  care  and  diligence  has  been  exercised  in  the  preparation  of  this  report,  Jetty  Research  Pty.  Ltd.  does  not  warrant  the  accuracy  of  the  information  contained  within  and  accepts  no  liability  for  any  loss  or  damage  that  may  be  suffered  as  a  result  of  reliance  on  this  information,  whether  or  not  there  has  been  any  error,  omission  or  negligence  on  the  part  of  Jetty  Research  Pty.  Ltd.  or  its  employees.                    

     

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4  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

 

Executive  summary    The  Restaurant  and  Catering  Industry  Association  (RCIA)  has  commissioned  Jetty  Research  to  conduct  a  random  national  telephone  survey  of  1,000  restaurant  and  café  owners  and  managers.  The  survey  is  designed  to  provide  statistical  evidence  relating  to  the  effects  on  restaurant  and  café  operators  of  Sunday  and  public  holiday  penalty  rates,  principally  in  relation  to  profitability,  staffing  levels  and  trading  hours.    The  survey  was  conducted  between  April  22nd  and  May  4th  2015,  using  a  sampling  frame  of  18,268  restaurants  and  cafes  across  Australia.  Respondents  were  not  told  the  subject  matter  of  the  survey  prior  to  commencement.    Results  are  subject  to  random  sampling  error  of  +/-­‐  3.0  per  cent  at  the  95  per  cent  confidence  level.    Among  the  survey’s  major  conclusions:    

1. 90  per  cent  of  respondents  opened  on  Sundays  and/or  public  holidays.  

2. Of  those  that  do  open  on  Sundays/public  holidays,  the  principal  reasons  provided  for  doing  so  (unprompted)  were:  “to  keep  customers  happy”  (31  per  cent);  “busy/busiest  days”  (30  per  cent),  and  “it’s  a  profitable  day”  (23  per  cent).  

3. When  asked  directly,  51  per  cent  of  respondents  believed  that  opening  on  Sundays/public  holidays  made  them  more  profitable  overall.  A  further  24  per  cent  believed  it  made  them  less  profitable,  and  19  per  cent  felt  it  made  no  change.  (The  balance  were  unsure.)  

4. Of  restaurants  that  didn’t  open  on  Sundays  and/or  public  holidays,  70  per  cent  said  (again  unprompted)  that  this  was  because  of  penalty  rates  or  an  inability  to  trade  profitably.    

5. When  asked  what  they  would  do  if  penalty  rates  were  reduced,  52  per  cent  of  respondents  in  businesses  already  open  on  Sundays/public  holidays  said  they  would  put  on  additional  staff,  and  41  per  cent  said  they  would  open  for  longer  hours.  Meanwhile  54  per  cent  of  those  respondents  not  currently  opening  said  they  would  be  likely  to  do  so  if  penalty  rates  were  reduced.    

6. Of  all  respondents,  52  per  cent  said  they  would  employ  more  staff  if  penalty  rates  were  reduced,  and  42  per  cent  said  they  would  open  additional  hours.  

7. Of  those  businesses  saying  they  would  take  on  extra  staff  if  penalty  rates  were  reduced,  the  average  number  of  additional  staff  they  would  employ  was  3.15  per  day.  

8. Of  those  businesses  saying  they  would  open  extra  hours  were  penalty  rates  to  be  reduced,  the  average  number  of  extra  hours  was  5.07  per  day.  

     (Continued  next  page)        

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5  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

 

 

9. The  following  table  summarises  key  survey  results  by:  whether  respondents  already  opened  on  Sundays  and/or  public  holidays;  whether  they  were  based  in  a  capital  city  or  regional  area;  and  number  of  employees:  

 *May  not  add  to  100%  due  to  “unsure”  or  “declined”  

 By  extrapolation,  and  based  on  the  ABS  estimate  of  26,728  restaurants  and  cafes  across  Australia1,  this  suggests  that  reducing  penalty  rates  could  see  approximately  39,800  extra  staff  being  employed  on  any  given  Sunday  or  public  holiday.  It  could  also  lead  to  approximately  60,000  hours  of  additional  employment  on  any  given  Sunday  or  public  holiday.2    

10. If  labour  rates  continue  to  increase,  42  per  cent  of  respondents  said  they  would  need  to  reduce  staff  and  26  per  cent  believed  they  would  need  to  increase  prices.  Twenty  three  per  cent  were  considering  reducing  weekend  trading,  while  12  per  cent  said  they  would  consider  closing.  

 

 James  Parker,  B.  Ec,  Grad  Cert  Applied  Science  (Statistics),  AMSRS  Managing  Director  May  19th  2015  

     

                                                                                                                         1  Note  this  excludes  a  further  6,337  restaurants  and  cafes  which  do  not  employ  staff.  It  also  excludes  caterers  and  takeaways.  2  See  Table  3.2,page  18,  for  workings  

Yes No Metro   Regional 1-­‐20 21+%  of  overall  sample* 90% 10% 51% 48% 67% 33%%  saying  they  would  take  on  extra  staff 52% 52% 52% 52% 54% 49%%  saying  they  would  open  longer  hours 41% 53% 41% 44% 45% 37%Extra  employees  (mean  #) 2.67 7.37 3.15 3.16 2.66 4.25Extra  trading  hours  (mean  hrs.) 4.68 7.45 5.36 4.77 5.06 5.08

Breakdown  of  key  resultsOpen  Sunday/PH? Metro/regional Number  of  

employees

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6  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

 

Introduction    

Background  

 In  April  2015,  the  Restaurant  and  Catering  Industry  Association  (RCIA)  commissioned  Jetty  Research  to  conduct  a  random  national  telephone  survey  of  1,000  restaurant  and  café  owners  and  managers.  The  survey  was  designed  to  provide  statistical  evidence  relating  to  the  effects  on  operators  of  Sunday  and  public  holiday  penalty  rates,  principally  in  relation  to  profitability,  staffing  levels  and  trading  hours.      

Methodology  

 The  survey  script  was  designed  by  Jetty  Research,  in  collaboration  with  the  RCIA,  to  achieve  the  survey  objectives  shown  above.  (See  Appendix  1  for  questionnaire).      In  order  to  avoid  response  bias3,  potential  respondents  were  not  informed  of  the  survey’s  subject  matter  until  they  had  agreed  to  participate.  Likewise,  the  survey  length  was  kept  under  five  minutes  to  maximise  response.    The  sampling  frame  comprised  a  list  of  18,268  restaurants  and  cafes  around  Australia,  supplied  by  the  RCIA.  Although  this  list  presumably  included  RCIA  members4,  we  were  not  informed  which  records  were  or  were  not  members.    This  initial  list  of  18,268  restaurants  was  randomized,  prior  to  7,500  records  being  selected  at  random  for  uploading  into  our  CATI  system.    Surveying  was  conducted  at  Jetty  Research’s  CATI5  centre  in  Coffs  Harbour,  using  a  team  of  ten  experienced  researchers.  Calls  commenced  on  Wednesday,  April  22nd  and  concluded  on  Monday  May  4th.  Calls  were  conducted  on  weekdays6  between  2pm  and  5.30  pm  AEST.  Potential  respondents  were  called  up  to  three  times,  and  at  different  times  of  the  afternoon.    Final  sample  size  was  n=1,000.  In  all,  67  per  cent  of  those  restaurants  successfully  contacted  and  eligible  to  participate  agreed  to  do  so.  Average  survey  completion  time  was  3.6  minutes.      

                                                                                                                         3  Whereby  potential  respondents  do  or  don’t  agree  to  participate  in  research  based  on  their  interest  in  the  subject  matter.  4  Which  we  believe  to  number  approx.  2,300  nationally  5  Computer-­‐assisted  telephone  interviewing  6  Note  that  we  did  not  survey  on  weekends,  to  avoid  skewing  the  sample  towards  weekend  traders.  

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7  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

   

Sampling  error  

 According  to  the  Australian  Bureau  of  Statistics7,  there  were  33,065  restaurants  and  cafes  in  Australia  as  at  June  2014.  Excluding  the  6,337  non-­‐employing  businesses,  this  equates  to  26,728  restaurants  and  cafes  with  staff.  The  breakdown  by  state  and  size  of  employees  is  shown  in  Table  i,  below:    

Table  i:  Restaurants  and  cafes  in  Australia  

     Random  sampling  error  for  a  randomly  selected  sample  of  1,000  restaurants  and  cafes  within  a  population  of  26,728  employing  restaurants  is  +/-­‐  3.0  per  cent  at  the  95  per  cent  confidence  level,  and  +/-­‐  4.0  per  cent  at  the  99  per  cent  confidence  level.    This  effectively  means  that  were  we  to  conduct  the  same  survey  20  times  using  different  random  samples,  results  should  be  representative  of  all  Australian  restaurants  and  cafes  employing  staff  to  within  +/-­‐  3.0  per  cent  in  19  of  those  20  surveys.  (And  similarly,  results  should  be  within  +/-­‐  4.0  per  cent  in  99  of  any  100  surveys  conducted.)8    As  can  be  seen  from  Table  ii,  next  page,  random  sampling  error  rises  as  sample  size  falls:      

                                                                                                                         7  ABS  81650,  Counts  of  Australian  Businesses  2010-­‐14,  published  April  8th  2015.Note  these  figures  exclude  caterers  and  takeaways,  which  are  classified  separately.  8  In  each  instance,  this  ignores  the  effect  of  any  non-­‐random  sampling  error.  Though  inevitable,  steps  have  been  taken  to  minimise  such  error  at  each  stage  of  the  research  process.  

State/TerritoryNon

Employing1-19

Employees20-199

Employees200+

Employees Total

New  South  Wales 2,255 8,778 565 15 11,613Victoria 1,878 7,157 481 15 9,531Queensland 1,091 4,183 506 8 5,788South  Australia 326 1,371 146 0 1,843Western  Australia 533 1,981 328 6 2,848Tasmania 106 470 40 0 616Northern  Territory 35 117 24 0 176ACT 113 478 59 0 650TOTAL 6,337 24,535 2,149 44 33,065

Restaurants  and  Cafes  in  Australia,  as  at  June  2014

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8  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

   

Table  ii:  How  sampling  error  varies  with  sample  and  population  size  

 

     This  means  that  care  needs  to  be  taken  in  extrapolating  data  from  smaller  sub-­‐samples  within  the  overall  sample.      

How random sampling error varies with population size©  Jetty  Research  2008

2%

3%

4%

5%

6%

7%

8%

9%

10%

100 200 300 400 500 600 700 800 900 1000 1100 1200

Sample size

Sam

plin

g er

ror (

at 9

5% c

onfid

ence

) Pop = 5,000

Pop = 50,000

Pop = 20m

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9  Restaurant  and  Catering  Industry  Association  Penalty  Rates  Survey  

©  Jetty  Research,  May  2015  

 

Part  1:  Respondent  characteristics    In  order  to  keep  the  survey  as  short  as  possible  (and  hence  to  maximise  response),  only  limited  questions  were  asked  regarding  respondent  characteristics.    

Graph  1.1:  Geographic  spread  of  respondents  

     While  the  sample  covered  a  robust  mix  of  states  and  territories,  it  was  not  necessarily  designed  to  be  representative  of  the  actual  state-­‐by-­‐state  breakdown  of  restaurants  and  cafes.9    

Graph  1.2:  Respondents  by  size  of  restaurant  

   Likewise,  the  sample  covered  a  broad  range  of  establishments  by  employee  size.    

                                                                                                                         9  In  fact,  based  on  ABS  data,  the  survey  sample  slightly  under-­‐represented  businesses  in  NSW/ACT  and  Victoria,  and  slightly  over-­‐represented  businesses  in  SA/NT  and  Tasmania.  

31%

21% 21%

11% 10%7%

0%

10%

20%

30%

40%

NSW  /  ACT VIC QLD SA  /  NT WA TAS

State    in  which  business  operates(n=1000)

13%

23%30% 27%

6% 1%0%

10%

20%

30%

40%

1-­‐5 6-­‐10 11-­‐20 21-­‐50 More                                                  than  50

Unsure/                                              declined

How  many  staff  do  you  currently  employ?(n=1000)

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Graph  1.3:  Metro/regional  split  

     There  was  an  almost  even  split  between  restaurants  and  cafes  located  in  capital  cities,  and  those  in  regional  areas.      

Graph  1.4:  Are  you  the  owner  or  manager  of  the  business?  

     Just  over  two  in  five  respondents  were  the  owners  of  their  restaurant/café,  with  the  balance  being  the  manager.      

   

Capital  city51%

Regional  area48%

Unsure/declined1%

Are  you  located  in  a  capital  city,  or  in  a  regional  area?(n=1000)

Owner43%

Manager57%

Are  you  the  owner  or  the  managerof  the  business?

(n=1000)

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Part  2:  Trading  patterns    The  survey  commenced  with  respondents  asked  about  their  trading  hours:    

Graph  2.1:  Do  you  currently  open  on  any  of  the  following  days?  

     In  all,  nine  in  ten  respondents  opened  on  Sundays  and/or  public  holidays.  (This  included  85  per  cent  opening  on  Sundays  but  not  public  holidays,  and  79  per  cent  opening  on  public  holidays  but  not  Sundays.)    

Table  2.1:  Restaurants/cafes  open  on  Sundays  and/or  public  holidays,  by  state/territory  

   The  proportion  of  respondents  opening  on  Sundays  and/or  public  holidays  varied  from  a  high  of  93.2  per  cent  in  Victoria  down  to  83.3  per  cent  in  Tasmania.        

Yes90%

No10%

Are  you  open  on  Sundays  and/or  public  holidays?(n=1000)

NSW / ACT SA / NT VIC QLD TAS WA

273 97 192 190 55 89 896

86.9% 90.7% 93.2% 92.7% 83.3% 87.3% 89.6%

41 10 14 15 11 13 104

13.1% 9.3% 6.8% 7.3% 16.7% 12.7% 10.4%

314 107 206 205 66 102 1000

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

TotalOpen Sunday and/or public holidays?

Yes

No

Total

State/Territory

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     Those  opening  on  Sundays  or  public  holidays  were  then  asked,  in  an  unprompted  question,  why  they  did  so.  The  responses  were  coded  (i.e.  themed),  and  are  shown  below:    

Graph  2.2a:  Why  do  you  choose  to  open  on  Sundays  and/or  public  holidays?  (unprompted)  

     The  majority  said  it  was  done  to  keep  their  customers  happy,  or  because  these  were  busy  days  for  them.    Just  under  one  in  four  noted  (unprompted)  that  it  was  profitable  to  do  so.    Likewise,  those  not  opening  on  Sundays  or  public  holidays  were  asked  (again  unprompted)  why  this  was  the  case.  Their  coded  responses  are  shown  below:    

Graph  2.2b:  Why  do  you  choose  not  to  open  on  Sundays  and/or  public  holidays?  (unprompted)  

     

5%

4%

7%

13%

13%

17%

18%

23%

30%

31%

0% 5% 10% 15% 20% 25% 30% 35%

Other

My  competitors  do  it

Forced  to  (shopping  centre  etc.)

Tourist  area

Avoid  losing  business  to  others

Pub/club  etc,  with  7  day  trading

Always  have

Profitable  day

Busy/busiest  days

Keep  our  customers  happy

Why  do  you  choose  to  trade  on  Sundays  and/or  public  holidays?(n=892,  multiple  answers  allowed)

70%

23%10% 1% 15%

0%

20%

40%

60%

80%

Penalty  rates/too  expensive/can't  make  a  profit

Not  enough  demand  where  I  

trade

History/                                          never  have                                                    opened

Not  allowed OTHER

Why  do  you  choose  not  to  trade  on  Sundays  and/or  public  holidays?(n=104)

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     Seven  in  ten  of  these  claimed  that  penalty  rates  made  it  impractical  or  unprofitable  to  open  on  Sundays  or  public  holidays.    Those  restaurants  and  cafes  that  do  open  on  Sundays  and  public  holidays  were  then  asked  specifically  whether  doing  so  made  them  more  or  less  profitable  overall:    

Graph  2.3:  Does  opening  on  a  Sunday  or  public  holiday  make  your  business  more  or  less  profitable  overall?  

     Half  said  it  made  them  more  profitable,  while  a  quarter  said  it  made  them  less  so.  A  further  one  in  five  felt  it  was  neutral  to  overall  profits,  with  the  balance  unsure.  Larger  venues  (i.e.  those  with  more  than  20  employees)  were  significantly  more  likely  than  those  with  less  than  10  employees  to  say  that  Sunday/public  holiday  trading  was  profitable  (at  58  and  43  per  cent  respectively).    

Table  2.2:  Effect  on  profitability  of  Sunday/public  holiday  trading,  by  state/territory  

     The  proportion  of  respondents  believing  that  Sunday/public  holiday  trading  made  them  less  profitable  overall  varied  from  17  per  cent  in  Queensland  to  36  per  cent  in  Tasmania.    

51%

24%19%

6%0%

10%

20%

30%

40%

50%

60%

More  profitable Less  profitable No  change Unsure

Do  you  believe  that  opening  on  Sundays  and/or  public  holidays  makes  your  business  more  or  less  profitable  overall?

(n=896)

NSW / ACT SA / NT VIC QLD TAS WA

130 51 94 113 25 45 458

47.6% 52.6% 49.0% 59.5% 45.5% 50.6% 51.1%

68 23 54 33 20 20 218

24.9% 23.7% 28.1% 17.4% 36.4% 22.5% 24.3%

60 18 32 32 8 16 166

22.0% 18.6% 16.7% 16.8% 14.5% 18.0% 18.5%

15 5 12 12 2 8 54

5.5% 5.2% 6.3% 6.3% 3.6% 9.0% 6.0%

273 97 192 190 55 89 896

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Total

State/Territory

Do you believe that opening on Sundays and/or public holidays makes your business more or less profitable overall?

More profitable

Less profitable

No change

Unsure

Total

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Part  3:  Implications  of  reducing  Sunday/public  holiday  pay  rates    Those  respondents  opening  on  Sundays  and  public  holidays  were  asked  whether  lower  penalty  rates  would  cause  one  or  more  of  four  possible  changes  in  their  business:    

Graph  3.1:  If  weekend  penalty  rates  were  to  reduce,  which  of  the  following  changes  would  you  make  your  business?  

     Three  in  four  said  they  would  put  any  savings  to  improving  their  business,  while  two  in  three  believed  they  would  invest  in  greater  training.  One  in  two  said  they  would  put  on  additional  staff  if  penalty  rates  were  reduced,  and  41  per  cent  claimed  they  would  open  longer  hours.    Those  respondents  not  opening  on  Sundays  or  public  holidays  (for  reasons  other  than  lack  of  demand  etc.)  were  similarly  asked  if  they  would  be  more  likely  to  open  on  these  days  were  penalty  rates  to  be  reduced.  The  results  are  shown  next  page:      

41%

52%

68%

78%

59%

48%

32%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Open  for  longer  hours

Put  on  additional   staff

Use  the  savings   to  invest  in  training

Use  the  savings   to  improve  your  business

If  weekend  penalty  rates  were  to  reduce,  which  of  the  following  changes  would  you  make  to  your  business?

(n=896)Yes No

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Graph  3.2:  If  penalty  rates  were  reduced,  would  you  be  more  likely  to  open  on  Sundays  and  public  holidays?  

     Of  restaurants  not  currently  opening  on  Sundays/public  holidays,  slightly  over  half  said  they  would  be  more  likely  to  do  so  were  penalty  rates  to  be  reduced.10    Among  all  1,000  restaurants/cafes  surveyed,  52  per  cent  of  respondents  said  they  would  be  likely  to  take  on  more  staff.  And  42  per  cent  said  they  would  be  likely  to  open  longer  hours.    Those  restaurants  saying  they  would  be  likely  to  take  on  additional  staff  if  Sunday/public  holiday  loadings  were  reduced  were  then  asked  if  they  could  roughly  estimate  how  many  extra  staff  they  might  recruit  “on  a  typical  Sunday  or  public  holiday”11.  The  frequency  of  responses  is  shown  below:            (continued  next  page)        

                                                                                                                         10  Note  that  cafes/restaurants  which  didn’t  open  on  Sundays  and/or  public  holidays  due  to  lack  of  customer  demand  were  not  asked  this  question.  However  they  have  been  given  an  assumed  response  of  “no”.  11  Note  that  where  respondents  provided  a  range,  this  has  been  recorded  as  a  mid-­‐point.  Hence  “3-­‐4  extra  staff”  became  3.5.  

Yes54%

No40% Unsure

6%

If  penalty  rates  were  reduced,  would  you  be  more  likely  to  open  on  Sundays  and/or  public  holidays?

(n=104)

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Graph  3.3:  Are  you  able  to  roughly  estimate  how  many  additional  staff  you  might  recruit  on  a  typical  Sunday/public  holiday?  

                                                   The  mean  (i.e.  average)  number  of  staff  added  would  be  3.15  per  day,  with  a  mode  (i.e.  most  popular  response)  of  two.  Among  smaller  restaurants/cafes  the  average  was  2.42  additional  staff,  rising  to  4.25  additional  staff  per  day  for  those  with  more  than  20  employees.    Of  those  restaurants  already  opening  on  Sundays  and/or  public  holidays,  the  mean  number  of  extra  employees  was  2.67  per  day.  This  rose  to  an  average  of  7.37  for  those  establishments  not  currently  opening  on  those  days.    There  was  no  difference  between  metro  and  regional  respondents.      Looking  at  the  number  of  additional  hours  venues  might  open:            (continued  next  page)            

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Graph  3.4:  Are  you  able  to  roughly  estimate  how  many  additional  hours  you  might  open  for  on  a  typical  Sunday/public  holiday?  

                                       The  mean  number  of  extra  hours  was  5.07  per  day,  with  a  mode  of  four.  However  this  obviously  hides  a  disparity  between  those  venues  already  open  on  Sundays/public  holidays  (with  a  mean  of  4.68  additional  hours)  and  those  which  are  not  (mean  =  7.45  per  day).    The  summary  of  mean  scores  is  shown  in  Table  3.1:    

Table  3.1:  Breakdown  of  results  by  trading  patterns,  location  and  number  of  employees  

     

   

Yes No Metro   Regional 1-­‐20 21+%  of  overall  sample* 90% 10% 51% 48% 67% 33%%  saying  they  would  take  on  extra  staff 52% 52% 52% 52% 54% 49%%  saying  they  would  open  longer  hours 41% 53% 41% 44% 45% 37%Extra  employees  (mean  #) 2.67 7.37 3.15 3.16 2.66 4.25Extra  trading  hours  (mean  hrs.) 4.68 7.45 5.36 4.77 5.06 5.08

Breakdown  of  key  resultsOpen  Sunday/PH? Metro/regional Number  of  

employees

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     We  have  also  extrapolated  possible  additional  employee  numbers  and  extra  hours,  based  on  restaurant  size  within  the  ABS  restaurant  and  café  totals  shown  in  Table  i  (page  7):    

Table  3.2:  Extrapolation  of  additional  staff  numbers  and  hours  open  

     This  suggests  that  lowering  penalty  rates  may  lead  to  approximately  39,800  additional  staff  being  employed  on  any  given  Sunday  or  public  holiday.  Likewise,  it  indicates  that  restaurants  and  cafes  may  cumulatively  open  for  up  to  60,000  additional  hours  on  any  given  Sunday  or  public  holiday.            

         

Non  Employing

1-­‐19  Employees

20+  Employees

Total

TOTAL  #  OF  RESTAURANTS/CAFES 6,337 24,535 2,193 33,065

Staff  multiplier 0 2.66 4.25Percentage  of  respondents  saying  they  would  employ  extra  staff 0% 54% 49%Extra  staff 0 35,242 4,567 39,809

Percentage  of  respondents  saying  they  would  open  additional  hours 0 45% 37%Hours  multiplier 0% 5.06 5.08Extra  hours 0 55,866 4,122 59,988

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Part  4:  Implications  of  rising  labour  costs      Finally,  all  respondents  were  asked  (unprompted)  what  changes  they  would  make  to  their  business  if  labour  costs  continued  to  rise.  Their  coded  responses  are  shown  below:    

Graph  4.1:  If  labour  costs  continue  to  rise,  what  changes  will  you  make  to  your  business?  (unprompted)  

     More  than  two  in  five  of  those  surveyed  said  they  would  need  to  reduce  staff,  while  26  per  cent  believed  they  would  need  to  increase  prices.  Twenty  three  per  cent  were  considering  reducing  weekend  trading,  while  almost  one  in  eight  (12  per  cent)  said  they  would  consider  closing.            

         

5%

3%

4%

4%

7%

12%

18%

23%

26%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other

Deeper  into  debt/seek  additional  finance

Work  longer  hours

None/no  change  required

Unsure

Close  down

Find  savings  elsewhere

Reduce  weekend  trading

Increase  prices

Reduce  staff

If  labour  costs  continue  to  rise,  what  changes  will  you  make  to  your  business?(n=1000,  multiple  answers  allowed)

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Appendix1:  Questionnaire    

Version 1 R_C_I_A

Last modified:27/04/2015 2:30:09 PM

Q1. Hi, my name is (name), and I'm calling from Jetty Research on behalf of the

Restaurant and Catering Industry Association. The association is conducting a

national survey regarding an important issue to all operators. The survey takes

less than 2 minutes, and all responses are confidential. Would you be willing to

assist us today?

Offer call back if unavailable Yes 1

No 555 Q1

Answer If Attribute "No" from Q1 is SELECTED

Q2. Thank you for your time. Have a great day.

End

Q3. May I just have your first name for the survey?

Type NA if not willing to give name

Q3

Q4. And are you the owner or manager of the business?

If owner or manager not available survey will terminate Owner 1

Manager 2 Q4

Neither 3 End

Q5. Thanks [Q3]. To kick things off, do you currently open on any of the following

days?

PROMPTED Yes No

Saturdays 1 555 Q5_1

Sundays 1 555 Q5_2

Public holidays 1 555 Q5_3

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Q6. Why do you choose to trade on Sundays and/or public holidays? Answer If Attribute "Sundays" from Q5 is Yes OR

Answer If Attribute "Public holidays" from Q5 is Yes

UNPROMPTED - tick any that apply or write in as OTHER Profitable day 1 Q6_1

Avoid losing business to others 2 Q6_2

Keep our customers happy 3 Q6_3

My competitors do it 4 Q6_4

Always have 5 Q6_5

Forced to (shopping centre etc.) 6 Q6_6

Busy/busiest days 7 Q6_7

Tourist area 8 Q6_8

Pub/club etc, with 7 day trading 9 Q6_9

OTHER Q6_O

Q7. Do you believe that opening on Sundays and/or public holidays makes your business

more or less profitable overall? Answer If Attribute "Sundays" from Q5 is Yes OR

Answer If Attribute "Public holidays" from Q5 is Yes

UNPROMPTED More profitable 1

Less profitable 2

No change 3 Q7

Unsure 666

Q8. If weekend penalty rates were to reduce, which of the following changes would you

make to your business? Please answer yes or no. Answer If Attribute "Sundays" from Q5 is Yes OR

Answer If Attribute "Public holidays" from Q5 is Yes

PROMPTED. Include 'unsure' as NO Yes No

Put on additional staff 1 555 Q8_1

Open for longer hours 1 555 Q8_2

Use the savings to improve your business 1 555 Q8_3

Use the savings to invest in training 1 555 Q8_4

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Q9. Are you able to roughly estimate how many additional staff you might recruit on a

typical Sunday/public holiday? Answer If Attribute "Put on additional staff" from Q8 is Yes

Enter number

Q9

Q10. Are you able to estimate roughly how many additional hours you might open for on a

typical Sunday/public holiday? Answer If Attribute "Open for longer hours" from Q8 is Yes

Record hours

Q10

Q11. Why do you choose not to trade on Sundays and/or public holidays? Do not answer If Attribute "Sundays" from Q5 is Yes OR

Do not answer If Attribute "Public holidays" from Q5 is Yes

UNPROMPTED- tick any that apply or write in as OTHER Penalty rates/too expensive/can't make a profit 1 Q11_1

Not enough demand where I trade 2 Q11_2

History/never have opened 3 Q11_3

Competitors don't open 4 Q11_4

Not allowed 5 Q11_5

OTHER Q11_O

Q12. If penalty rates were reduced, would you be more likely to open on Sundays and

public holidays? Answer If Attribute "Penalty rates/too expensive/can't make a profit" from Q11 is SELECTED OR

Answer If Attribute "History/never have opened" from Q11 is SELECTED OR

Answer If Attribute "Competitors don't open" from Q11 is SELECTED

Yes 1

No 555 Q12

Unsure 666

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Q13. Are you able to roughly estimate how many staff you might recruit on a typical

Sunday/public holiday? Answer If Attribute "Yes" from Q12 is SELECTED

Record number

Q13

Q14. Are you able to estimate roughly how many hours you might open for on a typical

Sunday/public holiday? Answer If Attribute "Yes" from Q12 is SELECTED

Record hours

Q14

Q15. If labour costs continue to rise, what changes will you make to your business?

UNPROMPTED - tick any that apply or write in as OTHER Close down 1 Q15_1

Deeper into debt/seek additional finance 2 Q15_2

Reduce weekend trading 3 Q15_3

Find savings elsewhere 4 Q15_4

None/no change required 5 Q15_5

Reduce staff 6 Q15_6

Increase prices 7 Q15_7

Unsure 666 Q15_8

OTHER Q15_O

Q16. And just before we finish [Q3], how many staff do you currently employ?

PROMPT. If franchise or chain etc, include any staff employed by the respondent. 1-5 1

6-10 2

11-20 3

20-50 4 Q16

More than 50 5

Unsure/declined 6

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Q17. And are you located in a capital city, or in a regional area?

UNPROMPTED. For chains, franchises etc, where is respondent based? Capital city 1

Regional area 2 Q17

Unsure/declined 3

Q18. RESEARCHER ONLY: Select which state phone list

Use DETAILS NSW / ACT 1

SA / NT 2

VIC 3

QLD 4 Q18

TAS 5

WA 6

Q19. Thank you [Q3], that's the end of the survey. The Restaurant and Catering Industry

Association greatly appreciates your time and feedback today. Have great day.

End

 


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