Unveiling the True Cost of a Chicken Parmigiana: A Small Business Owner’s Perspective
The Backstory
A publican, Simone Douglas, faced backlash from customers over the price of a chicken parmigiana at Adelaide’s Duke of Brunswick. In response, she took to social media to break down the true cost of this popular dish, shedding light on the financial challenges small businesses face.
The Breakdown
In a Facebook video, Ms. Douglas revealed that out of the $33 charged for the meal, only $2.03 (or even less) was left as profit after accounting for wages, tax, super, and other operational costs. This transparency aimed to educate customers on the intricacies of pricing in the hospitality industry.
The Realities of Small Business
- The chicken parmigiana is a bestseller, serving hundreds of customers weekly.
- Small business owners like Ms. Douglas struggle to balance costs amidst CPI and wage increases.
- Without additional revenue streams like pokies or TAB facilities, businesses rely solely on food and beverage sales.
The Impact
- Negative reviews based on pricing overlook the quality service and food provided.
- Financial pressures, exacerbated by the cost of living crisis, threaten the viability of small businesses.
- Data from ASIC and CreditorWatch highlight the high-risk nature of the hospitality industry, with a notable chance of failure.
Analysis
Simone Douglas’s candid account offers a rare glimpse into the financial intricacies of running a small business, particularly in the hospitality sector. By debunking misconceptions around pricing, she underscores the challenges faced by entrepreneurs in maintaining sustainable operations. This narrative serves as a reminder to consumers to consider the value and effort behind their dining experiences, beyond just the price tag. Additionally, the industry data provided sheds light on the broader economic landscape, emphasizing the need for support and understanding in sustaining local businesses.