POLICY & REPRESENTATION WORKPLACE RELATIONS ADVICE
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1 2014 Annual Report POLICY & REPRESENTATION WORKPLACE RELATIONS ADVICE IMMIGRATION ADVICE ACCREDITATION & AWARDS PROGRAMS TRAINING & EDUCATION EXCLUSIVE MEMBER DISCOUNTS NEWS & INDUSTRY UPDATES Restaurant & Catering Australia (R&CA) leads and represents the interests of restaurants, catering and associated businesses across Australia. We advocate on behalf of our members to ensure their views are represented at all levels of Page government, 1 and influence the policy framework that impacts their operating environment.
2 RESTAURANT & CATERING AUSTRALIA Restaurant & Catering Australia (R&CA) is the national industry association representing the interests of 35,000 restaurants, cafes and catering businesses across Australia. R&CA delivers tangible outcomes to small businesses within the hospitality industry by influencing the policy decisions and regulations that impact the sector s operating environment. R&CA is committed to ensuring the industry is recognised as one of excellence, professionalism, profitability and sustainability. This includes advocating the broader social and economic contribution of the sector to industry and government stakeholders, as well as highlighting the value of the restaurant experience to the public. Cover images courtesy of Tourism Australia Page 2
3 TABLE OF CONTENTS PRESIDENT S REPORT 4 POLICY UPDATE 6 INDUSTRIAL RELATIONS 6 IMMIGRATION 7 TOURISM MARKETING & PROMOTION 7 IMPROVING THE BUSINESS OPERATING ENVIRONMENT 8 NATIONAL MEMBERSHIP 10 SAVOUR AUSTRALIA AWARDS FOR EXCELLENCE 11 ACT 11 NORTHERN NSW 11 VICTORIA 11 WESTERN AUSTRALIA 12 SOUTH AUSTRALIA 12 SOUTHERN NSW 12 QUEENSLAND 13 SYDNEY & SURROUNDS 14 NATIONAL EVENT 15 EDUCATION & TRAINING 16 RTO/TRAINING DEPARTMENT 16 AUSTRALIAN APPRENTICE MENTORING PROGRAM 16 SKILLS ADVISORS NETWORK 16 SKILLS PATHWAYS PROJECT 17 MARKETING & COMMUNICATIONS 18 MEDIA 18 COLLATERAL 18 SOCIAL MEDIA 19 FINANCIAL REPORT 20 Page 3
4 PRESIDENT S REPORT This year has been an amazing year for the Association with Restaurant & Catering Australia continuing to deliver value to members while addressing regulatory burden and red tape affecting the sector. Retail trade data continues to depict a resurgence in the dining scene with a 14.4 per cent increase in sector turnover to $23.5 billion. Yet business confidence remains subdued with R&CA s 2014 Industry Benchmarking Report finding 53.7 per cent of businesses have had their net profit decrease over the past three years. Staff wages and on-costs can account for up to 45.3 per cent of business costs, often making trading on weekends and public holidays unviable. In a major win for the Association, R&CA secured a 25 per cent reduction (for grades one and two) of the Sunday penalty rate for casual staff, recognising the crippling affect penalty rates have on the viability of hospitality businesses across Australia. Yet R&CA s work is not done; the Association will now turn its attention to preparing its case for the Four Year Review of the Modern Awards and the minimum wage review due to be heard by the Fair Work Commission. Ensuring the sector has a readily available source of professional and skilled labour continues to be a core focus of the association, with the delivery of the Skills Advisors Network in June this year. This compliments the Association s ongoing development of the Australian Apprentice Mentoring Program and Skills Pathway Project aimed at improving the skills of young hospitality workers, while retaining them in the sector for longer. Yet this is only one piece of the puzzle; skilled overseas workers are, and will continue to be, an important part of the hospitality labour force. After extensive advocacy R&CA successfully secured the reinstatement of Chefs on the Skilled Occupation List in May this year. This will allow overseas Chefs to freely migrate to Australia without the need of a sponsor. R&CA s Savour Australia Awards for Excellence program provides the Association with an important opportunity to recognise and celebrate the true calibre of operators in the sector, with the association recording increases in event attendance and entries across a majority of the state award nights. Page 4
5 Finally, I am amazed by the reception Tourism Australia s Restaurant Australia campaign has received from industry and media overseas. This important international campaign highlights the best of what our industry has to offer the world in terms of food and wine experiences. The campaign continues to go from strength to strength, and I am encouraged by the strong working relationship Tourism Australia has forged with industry and the Association in making this campaign a reality. I am proud of the achievements R&CA has realised this year and am certain these will provide and infallible foundation for the Association s work in the year to come. I commend this Annual Report to you. Matteo Pignatelli PRESIDENT RESTAURANT & CATERING AUSTRALIA Page 5
6 POLICY UPDATE INDUSTRIAL RELATIONS The Workplace Relations Advisory Service provides members with specialist advice on: Federal and state employment legislation such as the Fair Work Act; National Employment Standards; Interpretation of Awards; Employment contracts; Workplace policies and procedures; Public holidays; Occupational Health and Safety (OH&S); Performance counselling; and Termination of employment including redundancy. For the period 1 July 2013 to 30 June 2014 the workplace relations team has handled 3868 member enquiries. During the year there has been a number of reviews undertaken in respect to national workplace relations and this included: ANNUAL WAGE REVIEW This year the Fair Work Commission conducted its annual wage review and R&CA sought exemptions for the sector from any minimum wage increase due to difficult trading conditions. However, the Minimum Wage Panel decided to hand down an across the board increase of 3 per cent to all Modern Award rates of pay operative from 1 July The Minimum Wage Panel noted in their Decision that: The practical difficulty created by the present legislative framework remains and this does impact on the ability of some parties to effectively raise exceptional circumstances matters with the Panel. This is an issue for the parliament. MODERN AWARD REVIEW R&CA was successful in lodging an Appeal of the Restaurant Industry Award Decision concerning penalty rates and the classification structure with a Full Bench of the Fair Work Commission upholding the appeal and reducing penalty rates by 25 per cent for casual employees engaged on Page 6
7 Sundays at the introductory and levels 1&2. United Voice lodged a further appeal to the Federal Court however this appeal by the union was rejected. R&CA during the year participated in the commencement of the 4 yearly review of Modern Awards and appeared in proceedings for Common Issues that will impact the industry. IMMIGRATION The tourism industry currently has a shortfall 35,800 skilled and unskilled workers, with this number expected to increase to 56,000 by The café and restaurant industry is the worst affected sector with Kitchenhands, Waiters, Restaurant Managers, Chefs and Cooks the most in-demand positions. After two years of advocacy R&CA successfully secured the reinstatement of Chefs on the Skilled Occupation List (SOL). The SOL identifies occupations that can freely migrate to Australia without the need of a sponsor. R&CA are now seeking a further expansion of hospitality positions on the Skilled Occupation List to include Cooks and Restaurant Managers. R&CA has made several submissions to government on the 457 Temporary Work visa, recognising Cooks and Chefs are the largest number of primary applications under this visa class. R&CA has called for reform to English language requirements, the abolition of labour market testing, and a reduction in the income threshold used for overseas workers (TSMIT). These reforms were reflected as final recommendations of the Independent Review Committee on the 457 Visa Programme. TOURISM MARKETING & PROMOTION Tourism Australia is the country s marketing agency responsible for promoting Australia to international visitors. Tourism Australia has worked with Restaurant & Catering Australia to develop Restaurant Australia; a $10 million campaign aimed at promoting Australia s best food and dining experiences. Research indicates great food, wine, and local cuisine is now a major factor in holiday decision making. For those who have visited, Australia ranks second only to France for its food and wine experiences. However for those who have not visited, Australia ranks 6th in the world. Closing the perception gap between those who have visited and those who have not presents a huge opportunity for the sector and for restaurant businesses. Page 7
8 Restaurant Australia has been launched nationally and was the lead focus of the Australian Government s Trade Mission to China which R&CA attended. Tourism Australia s recent Invite the World to Dinner campaign reached approximately 170,000,000 potential culinary visitors. Restaurants are being encouraged to upload content and stories to the Restaurant Australia website to promote their business and highlight the best experiences the sector has to offer. R&CA are currently working with Tourism Australia, State Tourism Organisations, and online booking engines to provide bookable product for visitors prior to arriving at their destination. IMPROVING THE BUSINESS OPERATING ENVIRONMENT Trends and developments in the broader macroeconomic environment often impact the operation of hospitality businesses. Below are a few of the recent developments that R&CA has worked with government, local councils, and industry associations to address. PIN@POS THE SWITCH FROM SIGNATURE TO PIN The introduction of signature to PIN for credit card transactions raised concerns over the impact the change would have on service orientated businesses such as restaurants. While Australia s major financial institutions executed a PINwise campaign, this was largely targeted at raising consumer awareness of the change. The campaign did not address the changes that would need to occur in restaurant operations or technology to accommodate the change. R&CA partnered with the Commonwealth Bank to provide a customised solution for hospitality operators that addressed the issues of terminal mobility, split bills, and tipping functionality. FOOD TRUCKS The industry has seen increased demand for new and contemporary ways to experience food. Mobile Food Vendors (Food Trucks) offer quick, simple, and efficient alternatives to patrons looking to dine out. The challenge remains balancing demand and interest in Food Trucks with the interests of existing bricks and mortar businesses. R&CA was an active participant in the City of Sydney s Food Truck Trial, providing input to the development of their Food Truck Program. Drawing on these experiences, R&CA developed its Food Truck Guidelines: a best-practice guide for the regulation of mobile food vendors. The Guidelines provide four guiding principles relating to support for existing businesses, regulation of the location Page 8
9 and hours of operation of food trucks, and ensuring operators comply with industry standards. The Food Truck Guidelines were distributed nationally to all local councils across each state. FOOD LABELLING There has been a renewed effort by Australian seafood producers and food allergen groups to have country of origin labelling and ingredient disclosures mandated for restaurant menus. The requirement would significantly increase compliance costs and red tape in hospitality businesses. R&CA appeared before the House of Representatives Standing Committee on Country of Origin Labelling to highlight the impost to business of the proposed legislation. R&CA has raised awareness of the potential cost to business through the media and current affair programs. R&CA remains an active participant in the Food Standards Australia & New Zealand Allergen Collaboration to develop solutions that allow consumers to make informed decisions about their dining choices, yet does not unnecessarily increase red tape for restaurant businesses. Page 9
10 NATIONAL MEMBERSHIP R&CA s national membership team continues to engage with members to demonstrate the value of membership, while looking to recruit new businesses and retain existing members. R&CA has focused this year on training staff in sales strategies and the psychology of selling while incorporating regular updates from corporate partners on new products and services that add value to the member offering. R&CA has been able to strengthen its membership offering through partnerships with CEBA Energy Brokers and the Commonwealth Bank, providing tangible cost savings and business improvements to members. Retention targets have been set in line with a detailed evaluation of how and why members lapse. The Association continues to battle an attrition rate largely dominated by business owners selling or closing their business, businesses coming under increasing financial stress, or businesses indicating are unable to see value in membership. Product improvements have been developed across the Green Table, Gold License, and Hospitality Buying Group, create opportunities for the membership team to re-engage with individual businesses. The 2014 Savour Australia HOSTPLUS Restaurant & Catering Awards for Excellence Program continues to be a highly visible consumer facing awards program that is well regarded by the public and media. With 2000 participating businesses assessed using the RACES assessment criteria, the program enables businesses to benchmark themselves against others in their category and demonstrate their rating through the award s plate rating system. The Savour Australia website displays all rated venues, providing an important consumer awareness tool. The site is unique it that it provides bookable product to facilitate local, national and international restaurant visitation adding value for participating venues and affirming Australia as a prime food & wine tourism destination. Interaction with members and foodie followers through social media has been a particular focus of the Association, with work on Facebook, Twitter and Instagram through various project and program platforms. Member engagement activities have grown with significant attendance at events such as R&CA s Doing Business Better forums and Industry Days, providing important opportunities for sponsors and associates to network with operators from the sector. Page 10
11 SAVOUR AUSTRALIA AWARDS FOR EXCELLENCE The 2014 Savour Australia HOSTPLUS Restaurant & Catering Awards for Excellence season saw a year of great financial achievements. Planning for the 2015 season has already begun with another foreseeable positive year ahead. ACT ACT Awards for Excellence - 23 June at Hotel Realm, Barton. The ACT awards increased in their entry numbers this year with 52 restaurant entries and 16 catering entries. The awards were held with 186 guests in attendance. Consumer Vote Award - Ricardo s Café, Macquarie Caterer of the Year - Kitchen Witchery Catering, Fyshwick Restaurant of the Year - Pulp Kitchen, Ainslie NORTHERN NSW Northern NSW Awards for Excellence - 14 July at Wests Newcastle, New Lambton. The Northern NSW awards again included Hunter/Central Coast and Northern/New England with restaurant winners announced for each region and combining the catering entries for Northern NSW. Hunter / Central Coast had 66 restaurant entries and Northern / New England has 38 restaurant entries. There were 12 catering entries for Northern NSW. 180 guests attended the gala dinner. Consumer Vote Award - Macauley s Restaurant, Coffs Harbour Caterer of the Year - Bonville Golf Resort, Bonville Restaurant of the Year - Esca Bimbadgen Restaurant, Pokolbin VICTORIA Victoria Awards for Excellence - 28 July at Peninsula Atlantic Group [V], Docklands. The Victoria Awards were held with approximately 500 guests in attendance. There were 70 metropolitan restaurant entries and 52 regional restaurant entries. There were 26 catering entries for the state saw the introduction of the Social Media Award for each state in which there were 15 entries for Victoria. The Lifetime Achiever award was awarded to Frank Van Haandel of the Van Haandel Group. Page 11
12 Consumer Vote Award - Skyhigh Mount Dandenong, Mount Dandenong Caterer of the Year - Zinc at Federation Square, Melbourne Regional Restaurant of the Year - Paringa Estate Restaurant, Red Hill South Metropolitan Restaurant of the Year - ezard, Melbourne WESTERN AUSTRALIA Western Australia Awards for Excellence - 4 August at Perth Convention and Exhibition Centre, Perth. Perth Convention and Exhibition Centre played host to over 680 guests for the 2014 Awards for Excellence saw an increase in entries with 102 restaurant entries and 33 catering entries. 8 Hospitality Awards were announced and Warwick Lavis of Matilda Bay Restaurant was awarded the Lifetime Achievers Award. Consumer Vote Award - Cosmic Cocktails and Catering and Chocolate Attraction, Wangara. Caterer of the Year - Beaumonde Catering, Bassendean. Restaurant of the Year - Satsuki, Subiaco SOUTH AUSTRALIA South Australia Awards for Excellence - 4 August at Adelaide Entertainment Centre, Adelaide. Over 1,100 guests attended the gala dinner. There were 228 restaurant entries and 27 catering entries. Jim Carreker from Appellation Restaurant at the Louise in the Barossa Valley received the Lifetime Achiever Award. Consumer Vote Award - Peel Street Restaurant, Adelaide Caterer of the Year - Restaurant Orana, Adelaide Restaurant of the Year - National Wine Centre, Adelaide SOUTHERN NSW Southern NSW Awards for Excellence - 25 August at City Beach Function Centre, Wollongong. The Southern NSW awards were held again at the City Beach Function Centre with 150 guests in attendance. There were 18 restaurant entries and two catering entries. Consumer Vote Award - Shimmer Restaurant & Bar, Gerrigong. Caterer of the Year - City Beach Function Centre, Wollongong. Restaurant of the Year - Eschalot Restaurant, Berrima Page 12
13 Black Hide Steakhouse by Gambaro Winner of Steak Restaurant for South East Queensland and Restaurant of the Year for Brisbane / Darling Downs QUEENSLAND Queensland Awards for Excellence - 8 September at Brisbane Convention & Exhibition Centre, Brisbane. The BCEC once again played host with over 500 guests and dignitaries attending. In 2014 Brisbane / Darling Downs, Gold Coast and the Sunshine Coast were combined into a larger South East Queensland region except for five categories that had strong numbers to run as separate regions. This was to eliminate the number of honourable mentions awarded on the evening. South East QLD had a total of 171 restaurant entries (Brisbane / Darling Downs with 88, Gold Coast with 59 and the Sunshine Coast with 24). Northern QLD had 28 entries. There were 26 catering entries for QLD. The Lifetime Achiever award was awarded to Nino Miano. Page 13
14 2014 Sydney & Surrounds Awards for Excellence Winners SYDNEY & SURROUNDS Sydney & Surrounds Awards for Excellence - 22 September at Doltone Hose - Darling Island Wharf, Pyrmont. The Sydney & Surrounds region had the largest number of entries and the biggest increase in catering entries since 2013 with 165 restaurant entries (156 for Sydney Metropolitan and nine for Blue Mountains / Central West) and 61 catering entries. More than 550 guests attended the gala dinner. Peter McCloskey of Fresh Catering was inducted to the Hall of Fame (Individual Award) as well as Our Big Kitchen (Community Service Award), Sam Christie from Longrain and Apollo was awarded Restaurateur of the Year and Greg Doyle was presented with the Lifetime Achiever award. Page 14
15 NATIONAL EVENT National Awards for Excellence - 27 October at Peninsula Atlantic Group [V], Docklands. The best restaurateurs, caterers and café operators in the country were announced at the National Awards with over 450 attendees. The Savour Australia Restaurant & Catering HOSTPLUS Awards for Excellence represents the pinnacle night of nights following eight regional events who sought the best of the best in each restaurant and catering category. Other award winners were Adelaide Oval who was honoured with the George Mure Memorial Professional Development Award; Compass Group in Sydney Town Hall who was awarded with the Green Table Award for Excellence in Environmental Sustainability and Ricardo s Café in Macquarie who won the Innovative Workplace Training Award. REGION AWARD LOGOS NATIONAL AWARD LOGOS Page 15
16 EDUCATION & TRAINING RTO/TRAINING DEPARTMENT Part of the RTO strategy is to improve processes for trainers to make active enrolments more accountable and reduce roadblocks such as time constraints which in turn will allow the trainers to become more accountable. The Education & Training Manager is finalising a new Recognition of Prior Learning tool to use initially on current learners. There is significant opportunity in the Certified Professional Restaurateur program that needs some initial time investment and strong marketing to take off. AUSTRALIAN APPRENTICE MENTORING PROGRAM The aim of the project is to increase the recruitment of targeted groups in the industry and improve retention rates of those already employed. The program seeks to provide mentoring services to 2500 apprentices over a 12 month period. This is an increase of 300 following the recent contract extension until June 30, There are currently more than 1700 (June 30, 2014) apprentices and trainees in or who have completed the program and of those completions over 75% are still engaged in their apprenticeship. SKILLS ADVISORS NETWORK Also known as Workforce Futures. This project was successfully completed by June 30, In total R&CA Skills Advisors conducted over 300 workplace diagnostics delivering final Workforce Development plans to 309 clients including businesses who became members as a result of their engagement in the program seeing the benefits of R&CA. The feedback from clients engaged in the project was overwhelmingly positive with many reporting operational improvements as a result of following the Workforce Development Plan that was created for them. Page 16
17 SKILLS PATHWAYS PROJECT The Skills Pathways Project (the Project) comprises four separate but related strands. It addresses long standing issues relating to apprenticeship pathways, post apprenticeship options and skilling apprentice supervisors and owners. It represents a new innovative response to addressing retention issues at an individual, enterprise and industry level. The Project is being led by R&CA and supported by the Commonwealth Department of Industry. The components and aims of each element of the Project are: Determine a competency based wage pathway for Certificate III in Commercial Cookery; Re-establishing as an apprenticeship option, the Certificate III in Hospitality or Front of House; Establishment of an identified Chef pathway at the post trade Certificate IV level to enhance the career pathway progression and link the occupation more clearly to a determination under the relevant awards; and An enhanced industry recognised skill set targeting apprentice supervision, particularly for owners, operators and others in supervisory positions who have not undertaken formal training. This project has also seen the successful implementation of a Skills Passport. Individuals can now create a Skills Passport at Each pathway in the project is managed from participants and their employers will be able to track their progress through their course. Page 17
18 MARKETING & COMMUNICATIONS MEDIA Media releases have been distributed throughout the year to national print, radio and online media outlets through the MediaNet service. Media has been generated on a number of issues and events such as R&CA policy lobbying, budget announcements, industry ABS results, Workplace Relations lobbying activity, the R&CA Digital Business Kit, the Discover Hospitality Skills Pathways project, the NSW Wine List Awards, the switch from signature to pin on most credit and debit cards in August and the 2014 Savour Australia Restaurant & Catering HOSTPLUS Awards for Excellence program. COLLATERAL RESTAURANT & CATERING MAGAZINE The Restaurant & Catering magazine is the official publication of Restaurant & Catering Australia (R&CA). The magazine is published monthly and mailed directly to members of the constituent state R&CA associations. It reaches a highly qualified and targeted audience of conscientious business owners and decision makers. The magazine helps members grow their business by delivering news on industry, product reviews, management, marketing, finance, wine, technology, design and more. Circulation: 8,329 copies per month readers per copy STATE MAGAZINE NEWSLETTER INSERTS The bi-monthly state newsletter inserts are distributed with the R&C magazine. It is an important communication channel that keeps readers abreast of state news and views, changes to state legislation, training issues and anything that is relevant to a local restaurant or catering business. The inserts provide a cost effective channel to connect advertisers with state members. Published in the same quality stock and to the same demanding standards as the national publication, it enjoys the same high levels of readership. RESTAURANT & CATERING MAGAZINE APP The R&C magazine app was launched in March 2014 and has been downloaded by 258 people to date. The magazine has invested in developing each of its magazine s as an ipad app and is paying for the licensing fees. Page 18
19 SOCIAL MEDIA R&CA continues to develop its social media presence, with the following achievements recorded for YOU TUBE The Restaurant & Catering Industry Association of Australia YouTube account was further developed, generating almost 10,000 views. R&CA FACEBOOK PAGE The R&CA Facebook page has been optimized and the remaining social media platforms listed below have been developed and nurtured. Facebook - In November 2014, the R&CA South Australia Facebook page merged into this page: 1,652 likes Twitter: 1,735 followers LinkedIn: 239 followers Instagram: 143 followers SAVOUR AUSTRALIA The Savour Australia Facebook page has been optimized and the remaining social media platforms listed below have been developed and nurtured. Facebook: 4,090 likes Twitter: 284 followers LinkedIn: 184 followers Instagram: 129 followers DISCOVER HOSPITALITY The below Discover Hospitality social media platforms have been developed and nurtured. Facebook: 1,509 likes LinkedIn: 29 followers Page 19
20 FINANCIAL REPORT The audited financial report for Restaurant & Catering Association of Australia Incorporated for the year ended 30 June 2014 is attached. Page 20
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