Hospitality heavy hitters open up on industry's challenges

PENNY pinchers targeting cheap deals, a lack of time and the convenience of delivery services are combining to create unique challenges for the hospitality industry.

The result has been downward pressure on prices, and more innovation in modes of service.

Former Ocean St restaurateur Tony Kelly has shifted his operations to the newly-revamped Wharf precinct at Mooloolaba.

He said he'd been fortunate to be based there, with so much interest generated in the refurbishment.

READ: Famous restaurant sold as owners dine out on new venue

Mr Kelly said wet weather and the onset of winter often drove slight downturns, but whale watching season had also dragged more people to The Wharf.

He said convenience was king at the moment, and he'd catered his venues Rice Boi and Spero to that market, offering substantial, quality food, quickly.

"I wouldn't like to own a formal restaurant at the moment, that's for sure," he said.

He said they'd been able to capitalise on the "pre 12 o'clock" market, with a family-friendly focus.

He expected a bounce in trade once tax returns started flowing, and said post-election, spending at Saltwater on $30-$50 bottles of wine had jumped to the $40-$70 bracket.

READ: Renovations under way for brewery's epic expansion

He said Uber Eats had influenced the industry too, with so many people time poor, but it wouldn't work for every venue.

"You're selling convenience, it's a weapon," he said.

Kiki Bar and Eatery owner and former Spice Bar boss Aaron Ruttan said they'd noticed people using more discretion with their disposable income, and it'd been one of the quietest periods he'd seen in 10 years operating on the Coast.

READ: 'Nowhere for my party': Restaurant to close after 19 years

He said suppliers had told him the same, from Mooloolaba to Noosa.

"We really have noticed people are a lot tighter with their money," he said.

"People are now super spoilt for choice... it's pushing prices down.

"Only the tough are going to survive."

He was hopeful business would pick up again at tax time, and the peaks and troughs would start to level out.

Sunshine Coast Hotels owner Scott Armstrong said they'd experienced a softer period through May and the start of June, possibly due to the federal election and an unusually wet winter.

"It certainly tapered off through May. The early cold snap hurt a bit too," he said.

But he'd noticed significant improvement last week, and with school holidays under way and tax returns due back in July, he expected business to keep getting stronger again.