Australian Restaurant & Cafe Association CEO Wes Lambert MAICD and its chair, renowned chef Neil Perry AM, are on a mission to ensure a sustainable future for the hospitality sector.
As the hospitality sector enters its busiest season of the year, the advocacy mission of the Australian Restaurant & Cafe Association (ARCA) is more critical than ever. With labour shortages and shifting regulations, the new peak body led by industry titans is focused on industrial relations, taxation, skilled labour and regulatory burden. Chair Neil Perry AM and CEO Wes Lambert MAICD share ARCA’s creation, key priorities and the essential role of governance in supporting a sustainable future for the industry.
Neil Perry AM
The chair’s POV
The idea for ARCA came from discussions with Wes Lambert and (Melbourne restaurateur) Chris Lucas, who shared my view of the need for a stronger industry voice. Wes, with his experience as CEO of the Restaurant & Catering Association, had proven effective in influencing state and federal governments, and we aimed to re-establish that seat at the table. Our priorities include industrial relations, taxation, and immigration — key issues debated in Canberra — alongside state- level concerns like payroll tax and licensing that directly impact our sector.
When Wes approached Chris and me, he stressed forming an association with strong government connections. By gathering high-profile leaders, we aimed to create a team officials would respect and listen to. Since launching, we’ve attracted around 1000 venues, plus associates from related fields, broadening our influence.
Our goal is to represent a diverse range of restaurants and cafes nationwide, addressing labour, taxation and immigration challenges. While uniting influential voices, our focus is on benefiting the entire industry and ensuring positive outcomes for the sector.
Working with Wes and the board has been rewarding. He is a switched-on, focused lobbyist who understands where change can happen. My role as chair is to support him, build connections and offer guidance based on my experience in Australia’s industry and political landscape.
Industry voice
We aim to be a slightly different but complementary voice in the industry. Many sectors have more than one lobby group advocating on their behalf. While the Restaurant & Catering Association already serves our sector, we saw value in adding another strong voice.
Clubs, associations and the Australian Hotels Association effectively represent their respective interests in areas like liquor and gambling. They often have multiple groups in Canberra communicating with the government about the impact of legislative changes. This set-up enables them to maintain ongoing conversations with both government and opposition. The more people you’ve got agitating for a fairly similar cause, the more likely people are to listen for the benefit of restaurants and cafes across Australia.
Core pillars
Our core focus in industrial relations (IR) is the complex hospitality award that makes compliance challenging for businesses. We advocate simplifying these requirements, especially as the government reviews definitions around casual and permanent employment, roster rules and flexibility — key issues given the industry’s seasonal and economic fluctuations.
Labour-intensive sectors like hospitality are particularly impacted by some IR laws, with payroll tax a major issue. Unlike manufacturing or tech, hospitality requires more staff to generate revenue, increasing payroll tax burdens. Outdated thresholds haven’t kept up with wage growth, creating a “bracket creep” that traps small businesses. Addressing these remains central to our advocacy.
Immigration is important, as both parties discuss reducing skilled worker intakes and visa pathways to residency. Young workers coming to Australia should have clarity on residency opportunities, especially given frequent changes to skilled visa occupational lists. It’s vital for us to stay active in these discussions. Simplifying taxes is crucial for economic health, as small businesses are key to employment and growth. We frequently encounter issues like fringe benefits tax (FBT) and the need for reform, potentially increasing GST and adjusting other taxes.
If I was meeting the Treasurer, I’d emphasise reducing complexity and increasing our skilled labour intake. With housing demands rising, efficient IR in construction is crucial to meet targets. Local government inefficiencies, like slow development application approvals in NSW, add costs and delays. Reducing such inefficiencies would greatly benefit businesses and the economy.
Chef-owner-chair
My career started with a simple dream — to create a great restaurant and take people on a journey. That drive still motivates me every day — even at the age of 67 — to stand behind the stove and pursue new projects.
“Success” has always meant surrounding myself with smart people, listening well and leading by example. I started in front of house at 19, was managing restaurants by 25, then moved to the kitchen. In 1997, (then CEO) Geoff Dixon invited me to work with Qantas. I’m still there 27 years later, still learning and sharing.
Wes Lambert MAICD
The CEO’s POV
ARCA was born from the need for a stronger voice as policy and legislative changes impacted hospitality amid slowing diner demand. Since February, that demand has declined, an important catalyst for ARCA’s formation. Jobs and Skills Australia requested submissions to keep chefs on the priority skill list, although restaurant and cafe managers are set to be removed.
Legislative shifts affecting working holidaymakers, sponsored migrants and international students further strained the sector, as many hospitality staff are students or migrants restricted to 20 hours per week, down from 40 during COVID. Food trades enrolments remain low, with National Centre for Vocational Education research reporting a 38 per cent drop in commencements in 2022–23 and an 11 per cent drop from pre-pandemic levels. Despite low enrolments, businesses urgently need workers, with over 40,000 positions open, including nearly 10,000 for baristas alone.
The founding board felt these issues were inadequately addressed, prompting them to form ARCA as a dedicated voice for restaurants and cafes. Although other associations cover hospitality broadly, nearly 55,000 restaurants and cafes were underrepresented. ARCA aims to unify voices from across Australia, recognising shared challenges from suppliers, award rates and national policies.
Skills and migration
To address workforce needs, it’s crucial we don’t try to fill a square hole with a round peg. Many restaurant and cafe workers are working holidaymakers and international students. While developing domestic skills is important, ongoing support for these migrant workers is essential.
Young people entering trades and hospitality are declining, and while we’re collaborating with ministers to encourage this, abrupt migration policy changes risk worsening workforce shortages. For example, the government’s moves to prevent working holidaymakers from applying for student visas onshore from 1 July 2024 will heavily impact hospitality, as many holidaymakers rely on this transition to extend their stay and employment.
Additionally, the temporary skilled migration income threshold (TSMIT) increased from $53,900 to $70,000 in 2023, with a further rise to over $73,000 on 1 July 2024. These rapid adjustments compel restaurants to raise prices, as their margins are often below five per cent, according to IBISWorld and ATM Strategy.
The industry already faces rising costs from inf lation, interest rate hikes and increased expenses for goods, insurance, utilities and rents. Some businesses report rent hikes as high as 50 per cent due to inflation-linked increases, a significant burden in planning for sustainable growth. In discussions with the Treasurer, I stressed the importance of prioritising these issues for the election-year budget, to ensure we have a seat at the table.
Regulatory complexity
In the short term, we’re focused on urgent government policy changes that need immediate attention, such as keeping chefs and cooks on priority lists, and supporting working holidaymakers and international students.
In the medium term, our focus is on tax reform, particularly payroll tax and GST. Payroll tax has become a significant burden, as some state governments now rely on it for nearly 30 per cent of their budgets. This places a heavy load on hospitality businesses, with around 93 per cent of them classified as small businesses. Additionally, we see potential changes to GST and FBT as opportunities to support restaurants, cafes and other small businesses.
For the long term, we’re looking at the complexities of the Fair Work Act 2009 and the restaurant award, which is now 99 pages long and exceptionally detailed. Out of 122 modern awards, there are countless pay points, making it extremely challenging for small businesses. While software tools can help manage compliance, they are often costly and complicated for smaller operators, requiring accurate data and a strong understanding of factors like employee levels, certifications, age and specific job duties. These complexities make it more difficult for smaller restaurants to remain compliant.
Conduct in the sector
In the wake of recent news, ARCA has swiftly implemented changes to the board to reinforce our stance as the peak body representing restaurants and cafes in Australia’s hospitality industry. (In months prior to publication, news reports revealed alleged incidents of improper behaviour at two major hospitality groups. Those matters are currently under investigation.)
We are committed to promoting safe, inclusive and respectful workplaces and unequivocally do not condone unsafe practices, sexual harassment or discrimination of any kind. We are also dedicated to enhancing diversity within both the industry and our leadership, welcoming industry veteran Judy McMahon, founder of Sydney restaurant Catalina, to join our board and support these efforts.
Good governance is essential for industry associations. As the peak body for the hospitality sector’s largest segment, we recognise the importance of providing resources to ensure all stakeholders are clear about their obligations.
To this end, ARCA partnered with Prabha Nandagopal from Elevate Consulting Partners to create workplace culture support resources, which featured in our October webinar, Creating Safe, Inclusive and Respectful Workplaces in the Hospitality Industry: Meeting your new positive duty obligations.
In collaboration with our training partner, Allara Global, we’re offering complimentary online courses on workplace sexual harassment, harassment and discrimination, and workplace bullying. ARCA is dedicated to being a strong advocate for positive cultural change within the hospitality industry and broader community.
This article first appeared under the headline ‘Playing With Fire’ in the December 2024/January 2025 issue of Company Director magazine.
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