Inflation continues to affect hospitality industry
Data from online order management platform Ordermentum has found supplier prices and payment issues in the hospitality industry have increased due to inflation.
The company analysed the spending habits of 36,000 Australian hospitality business and 650 suppliers that use the platform to purchase and sell products, including baked goods, coffee, fruit and vegetables, seafood, poultry, packaging and more.
The data found supplier prices had increased by 20 per cent since 2020, with trading not yet returning to pre-pandemic levels.
“We’ve sifted through $2 billion worth of transactions to understand the economy’s fundamental signs,” Ordermentum founder Adam Theobald said in a media release.
“It shows that even though we’re not at our pre-pandemic trading levels, the amount owners are spending on goods for their venues have increased by 20% across the board.
“That’s looking at the average increase across all categories – coffee, baked goods, dairy, poultry, seafood, packaging, everything.”
Meanwhile, failed payment attempts between venues and suppliers had increased by 13 per cent since January this year.
Most of the payment failures occurred during August, September and October of 2022, with Victoria and New South Wales having the most, followed by Queensland and South Australia.
“There are a few reasons these failed payments could be happening – one of them being, venue owners are just not able to make their payments due to the rising cost of living,” Theobald said.
Earlier this year, Ordermentum, which launched in 2014, completed a $6.2 million capital raise and reached the milestone of $1 billion in annual gross merchandise value.