Australian hotel breakfast supplier Hotel Breakfast has a problem.
The company’s latest earnings report shows it is losing money every month.
Hotel Breakfast is in a tough spot.
The Australian Bureau of Statistics (ABS) says hotel breakfast sales are down 10 per cent year on year and are expected to fall further.
The decline in hotel breakfast demand, combined with declining revenues, has put the company in an even worse position than it was before the downturn hit in 2013.
The financial picture for the Australian hotel industry has worsened with the decline in the Australian dollar and the impact of the global financial crisis.
Advertisement Advertisement Advertisement The Aussie dollar is down 50 cents to the US dollar and has dropped by almost 30 per cent against the Australian pound since January 2018.
Hotel breakfast suppliers have also seen a drop in revenue from food and drink sales.
“In terms of the food and beverage industry, we’ve seen the downturn,” says Hotel Breakfast’s managing director, Greg McNeill.
“The decline in tourism has hit our business.”
McNeill is also facing some tough decisions about where his company can invest in the future.
“It’s the hardest thing we’ve ever had to do,” he says.
“We’ve got to decide where we are going to put our resources and where we’re going to be able to continue to make a profit.”
Hotel Breakfast currently makes the majority of its revenue from the Australian breakfast chain, which is based in Melbourne, Sydney and Brisbane.
But it has also had a number of deals with food and food products suppliers in other parts of the world.
In the US, it has partnered with the likes of Trader Joe’s, Dannon and Starbucks to supply breakfast in their stores.
In Europe, it currently sells its breakfast to McDonald’s in Italy and McDonald’s and Starbucks in France.
But McNeill says the trend for the next few years is for the majority, if not all, of its breakfast orders to come from the US.
“I think that is going to change as the economy continues to deteriorate,” he said.
“So for now we’re looking to be very much a global brand.”
McNeil says the biggest challenge the company is facing is finding the right mix of products to satisfy all its customers.
“There are a lot of different things that can be done,” he explained.
The problem for the company’s management team is that many of the different options are either unavailable or very expensive. “
We need to make sure that we are offering both a breakfast and lunch option that cater to all the different tastes of our customers.”
The problem for the company’s management team is that many of the different options are either unavailable or very expensive.
For example, a typical breakfast menu for a standard business class room can cost from $12 to $18 depending on the size of the room.
It can be more expensive for guests in larger rooms.
“With a business class breakfast, we’re charging $10-15 an hour for the breakfast, which means that we’re still paying the same as a standard restaurant breakfast for the same service,” says McNeill, who also points out that a business breakfast costs $20 per person and a standard breakfast costs between $10 and $15.
Hotel Bakery, on the other hand, has a more straightforward breakfast menu with two options: a regular breakfast and a morning breakfast.
“Our breakfast menu is basically a normal menu that we normally serve in a restaurant,” says owner Paul Darnell.
“They’re either coffee or breakfast, they’re usually about 10-15 different items and it’s about $6-8 per person.”
Darnel says they’ve had some customers turn up to their breakfast in the morning, but most customers prefer to eat in the evening.
“If we’re doing a breakfast for a business dinner and we’re not making enough money to keep paying the rent and pay the bills then we’ll do a breakfast in a pub or restaurant and try to find the best location,” he explains.
“But at the end of the day it’s not about what the breakfast is, it’s really about the customer experience.”
Breakfast options for different groups of customers include: a large group of people who want to share a meal with friends and family, or a small group of guests who don’t want to pay for their own breakfast.
It also includes breakfast for older people who are unable to afford the extra cost of a business meal.
Breakfast menu for an office environment A typical breakfast for an average office environment, such as a coffee shop, can cost between $9.50 and $12 per person.
Breakfast options can range from breakfast for people who work in an office setting to a normal breakfast, with a couple of options.
For those who don´t work in a typical office environment it is also possible to eat at a cafe, where a regular coffee is cheaper than a morning one