Australia’s hospitality industry is always the bellwether for the economy; it’s the first to see changes in discretionary expenditure and improvements in consumer sentiment. Demand for dining, accommodation, and entertainment remains culturally embedded. Yet the economics of running a hospitality business have shifted fundamentally over the past three years.
Labour costs have risen 15 to 20% since 2022. Delivery platforms take 20 to 30% of order value in commissions. Commercial rents remain elevated in key precincts. Insolvencies across the sector rose more than 27% in 2025. The paradox is clear: consumer demand is holding up, but margins are not.
Restaurants & Bars Full-service, casual, and specialty venues are working hard to balance rising operational costs while delivering an exceptional customer experience. Wage increases, labour shortages, and higher superannuation contributions are adding to the pressure, while utilities and insurance remain high. Consumer demand for dining experiences remains strong, but the cost of delivering them has risen dramatically.
The result is a hollowing out of the mid-market. Independent casual dining venues lack the pricing power of fine dining and the operational efficiency of QSR chains.
Quick Service Restaurants & Delivery-Led Brands
Gaming & Clubs (Pubs) Australia's approximately 6,500 to 7,000 licensed pubs remain among the most financially resilient hospitality assets, supported by diversified revenue streams and, in many cases, underlying property ownership.
However, the sector faces increasing regulatory scrutiny of gaming revenues. Governments in NSW and Victoria are advancing cashless gaming card legislation. Declining per capita alcohol consumption, particularly among younger Australians, is also shifting revenue mix away from bar toward food and entertainment. Rising labour and compliance costs add further pressure on operators who are already navigating a complex regulatory environment.
Hotels & AccommodationFrom boutique properties to large portfolios, accommodation providers are experiencing strong growth as undersupply in select markets affects both rates and occupancy. International visitor spending is forecast to exceed $48 billion annually by the late 2020s, supported by the reopening of Asian tourism markets and the pipeline of major events including the 2032 Brisbane Olympic Games.
However, labour shortages remain a significant challenge for hotel operators, particularly across housekeeping and food and beverage departments. The growth of short-term rental platforms such as Airbnb continues to affect leisure markets. Some hotel properties also carry elevated leverage from pre-pandemic acquisitions, creating refinancing risk as fixed-rate debt expires. Investors and lenders need to assess each asset's tourism exposure, management quality, and capital structure carefully.
We conduct rapid assessments of venue and portfolio performance, typically within two to four weeks. Our diagnostic covers profit and loss by venue, labour model efficiency, cost of goods, pricing architecture, revenue mix, lease terms, capex commitments, debt structure, and tax positions. We identify the specific cost and revenue drivers creating financial stress, and build a clear picture of what is viable, what needs to change, and what needs to close.
We build cash preservation plans using Olvera's Rapid Cash Framework, targeting immediate improvements across debtor management, creditor terms, inventory, and operating costs. We lead lease renegotiations with landlords, including rent reductions, deferrals, and conversion to turnover-based structures that align occupancy cost with trading performance. We also support supplier renegotiations, menu rationalisation, and labour model reviews to reduce fixed cost exposure and restore margin.
Assistance in implementing Safe Harbour frameworks, contingency planning, and creditor negotiations, as well as guidance through voluntary administration, DOCA, or Small Business Restructuring. maximisation through supply chain tenders.
We focus on maximising returns and planning for the best outcomes. With milestones and value-based billings, our goal is always to find the right solutions first.
Working in small teams, we believe in delivering creative, executable plans. Our team is highly resource-driven, utilising our vast networks whenever possible.
We see the people and potential behind the numbers. Our service is personable and long-term focused, with the right balance between financial and individual.
Damien develops strategic solutions for groups dealing in crisis management and/or distress investment.
Neil Cussen, a leading authority in insolvency and restructuring, offers 35 years of experience, excelling in asset tracing, business recovery, and cross-border insolvencies.
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