July 2, 2010Female, baby boomer with a supply of working capital and a coffee machine – that is the profile of a hospitality success story, according to a new industry index.
The inaugural Hospitality Industry Success Index (HISI), developed by national equipment financier
Silver Chef, was unveiled in Brisbane yesterday (July 1).
The national report provides an insight into the health of the hospitality sector and has found the industry is not as risky an enterprise as public sentiment suggests.
It revealed more than 90 percent of hospitality businesses succeed in the first 12 months of operation.
The key ingredient for their success is reportedly working capital.
HISI data also showed businesses with less than two years’ trading history are more successful than those with between two and four years’ experience, while small businesses are struggling to compete against well-backed franchise offers.
KEY FINDINGS
According to HISI data, coffee machines are the most successful hospitality asset, confirming the popularity of coffee in Australia today.
The so-called “slacker” generation (Gen X) has grown up and is strongly competing with baby boomers, who are the most successful in the hospitality stakes.
Women win the hospitality gender war recording a higher business success rate than their male counterparts.
The Western Australia resource boom is driving a thriving hospitality sector while Queensland has emerged as a strong contender on the Eastern seaboard.
SILVER CHEFSilver Chef Chief Executive Officer Charles Gregory (pictured right, with Chairman Allan English) says his company is in a strong position to present a detailed commentary on the state of hospitality to the industry.
“For more than 24 years, Silver Chef has helped thousands of businesses get their start through our Rent-Try-Buy financing model,” Gregory says.
“We have delivered more than $100 million of Silver Chef-funded equipment to the hospitality sector from the corner café to five star restaurants,” he says.
According to Gregory, the hospitality sector is a major provider of jobs and is crucial to both the Queensland and national economy.
“This data shows that with good research, working cash and entrepreneurial drive, small business can develop and prosper,” he adds.
