JUNGLE DRUM: OMG It's so expensive!
LAWRENCE MASON COLUMN
Back in the olden days it seems everything was cheaper. Somehow in the late 80s I could afford to pay the bank 17% interest! That figure would bankrupt the nation these days.
It seems that each day sees Facebook posts decrying the price of something, and restaurants get a fair bit of stick. And there is no doubt it is true; prices have increased exponentially since COVID. Even a basic loaf of bread is $4.50! It is hard not to get caught up in it, screaming with the masses for lower prices.
In Australia we use a thing called the consumer price index to judge inflation, and this figure is supposedly from 11 key items we all use. But the reality is that even though the 'basket' of 11 is meant to be representative, it simply isn't. In my business, if I used CPI as a tool to increase my prices, I would long ago be broke.
There is no way for example that insurance pricing is indicated by CPI. I have not heard of anyone whose insurance is not skyrocketing.
Wages are not included but are a massive part of any service business. And don't forget it is not just wages, it is worker's compensation insurance, and superannuation too. Suddenly a $30/hr staffer is more like $35 or more as you add in the extras. Then of course they get more weekends, at night and if they work overtime.
Every time the government increases wages, I increase prices. You can bet your life many other places do too; those that don't find out the consequences at the end of the quarter.
For food businesses there is all the red tape. Who is your Approved Manager? Who is your Food Safety Supervisor? Your WHS person? Approved Managers must be trained every three years. Food Safety every five. Up here in the Jungle we need a Water Management Plan. Water tests at $100 a pop. New staff must have RSA for alcohol and a free food safety certificate which to my mind is useless.
Government talks about cutting red tape and being small business friendly but it is a big bag of bullshit. Every year brings more inspectors or rules for something.
All of this comes with a mountain of paperwork. And your staff are getting paid to do it don't forget. In the end it makes no difference, it becomes so rote that I have had staff write down the cold room temperature as 24 C and just wander off home. Paperwork done!
It seems that each 'event' like COVID or the Ukraine war, or bird flu or whatever becomes an excuse for suppliers to up the prices. Bird flu made eggs expensive but the supply of chicken meat seemed unaffected. Go figure. Cooking oil and chip prices apparently cannot go down again because 'Ukraine'. Once prices go up they never come down again.
So next time you get 'price shock' at your local restaurant, please at least consider the reasons for it. If there are ten staff on the floor that's at least $350 an hour without considering the chef and kitchen staff. As long as the food is good, enjoy your night out. Unfortunately some places have resorted to cheap mass produced lines but kept the pricing of the quality lines. Just avoid those places.
And remember a vote for more rules and higher wages just means higher prices. In real terms we are much worse off than a few years ago, and unless government policy changes it is going to get worse. For a shire now wholly dependent on disposable income for travel, this is a big worry.
*Lawrence Mason has lived at Cape Tribulation all his life, and has been involved in farming, timber and tourism. He is a former board member of Tourism Port Douglas Daintree, founding Chair of Daintree Marketing Co-operative, and has been a member of both Alexandra Bay and Mossman State High School P&C. He is also a member of the Douglas Chamber of Commerce and has a keen interest in local issues.
- The opinions and views in this column are those of the author and author only and do not reflect the Newsport editor or staff.
