Afternoons with Sofie Formica & Phillip Di Bella | 4BC RADIO
This afternoon Phillip Di Bella joined host, Sofie Formica on 4BC RADIO to discuss insolvency pressure for our local cafes and restaurants.
30th July 2024
IN THE PRESS: New data from the Australian Securities and Investments Commission (ASIC) paints a grim picture for the hospitality sector: over the past year, business failures have surged by 50%, with 1,667 insolvency appointments compared to just over 1,100 the previous year. Cafes, restaurants, and small retailers are bearing the brunt of this crisis, struggling with rising costs and shrinking consumer spending.
Phil Di Bella, a veteran business operator and entrepreneur, has witnessed these pressures firsthand. Speaking on 4BC Afternoons, he stated, “It’s only gonna get worse,” emphasizing the dire situation many hospitality businesses find themselves in. Phil elaborated on the challenges, including increased costs of goods, wages, and regulatory burdens. He noted, “We talk about problems, but we need to focus on solutions.”
Phil highlights systemic issues such as outdated payroll tax thresholds and restrictive visa policies. “Payroll tax last changed 13 years ago, but wages have doubled,” he pointed out, stressing the need for updated regulations. Additionally, he criticized the federal visa policies, stating, “Cutting back the 20 to 24-hour visa approvals is ridiculous. We need more staff in hospitality.”
Despite these challenges, Phil it taking a proactive approach. At the Coffee Commune, we are organizing round tables to gather data and propose solutions to the government. “We’re collecting actual data from operators,” he explained. “Don’t come with problems unless you have a possible solution next to it.”
Phil also emphasizes the broader impact of the hospitality sector on community life and economic vitality. “Hospitality touches every single person, whether they know it or not,” he said. “It’s an industry that needs to be looked after.”
As the sector navigates these turbulent times, Phil urges business owners to adapt by offering lower-cost menu items and managing expectations around profits. “Now is not the time to be expecting big profits,” he advised.
Phil Di Bella’s call to action is clear: “We don’t wanna fight anybody. We just wanna work with all levels of government to help this sector. If we don’t nurture it, it won’t be around in the next 20 years.” Despite the challenges, his commitment to sustaining the vibrant hospitality landscape remains unwavering.
Listen to his full interview below, or on 4BC Radio for more insights into his proactive approach and commitment to the hospitality industry.