What the Latest R&CA Benchmarking Report Reveals

Inside the 2025 Hospitality Landscape: What the Latest R&CA Benchmarking Report Reveals

Published by Restaurant & Catering Australia

Running a hospitality business in Australia has never been more complex.

The newly released 2025 R&CA Industry Benchmarking Report provides one of the most comprehensive snapshots of the sector today - drawing on insights from operators across restaurants, cafés and catering businesses nationwide.

From profitability pressures and workforce shortages to changing business models, the report offers a data-driven view of the realities facing hospitality operators and the trends shaping the industry ahead.

Rather than assumptions, the benchmarking report delivers real insights directly from hospitality businesses operating across Australia.

A Snapshot of Australia’s Hospitality Sector

The report confirms what many already know: hospitality remains one of Australia’s most important small business industries.

Across the benchmarking data, the sector continues to be largely made up of independent operators, family-run venues and small-to-medium businesses that play a vital role in local communities and tourism economies.

Inside the report, readers can explore detailed breakdowns including:

• The structure of hospitality businesses across Australia
• Venue types and operational models
• The role of family-operated businesses in the sector
• Ownership and venue scale trends

These insights provide valuable context for understanding how hospitality businesses operate today.

Financial Pressures and Profitability Trends

Financial sustainability remains a major focus for operators.

The benchmarking report explores profitability trends, cost pressures and operating margins across the industry, highlighting the financial realities many venues are navigating in the current environment.

Within the report, readers will find detailed insights into:

• Profitability trends across the past three years
• Common operating margins for hospitality businesses
• Key cost drivers impacting venues
• Pricing strategies operators are considering for the year ahead

These insights provide a clearer picture of how businesses are responding to a challenging economic landscape.

Workforce Challenges Across the Industry

Staffing continues to be one of the most widely discussed challenges across hospitality.

The benchmarking report examines recruitment challenges, workforce availability and the types of roles businesses are finding most difficult to fill.

The report also explores:

• The scale of current recruitment challenges
• Roles that remain hardest to fill
• The impact of workforce shortages on operations
• Perspectives from operators on workforce solutions

Understanding these trends is critical for shaping workforce policy, training pathways and industry support programs.

Operating Costs and Business Pressures

One of the key areas examined in the benchmarking report is the cost structure of hospitality businesses.

Labour, rent, energy and supply costs continue to influence how venues operate and plan for the future.

The report provides detailed data on:

• Labour costs as a proportion of business turnover
• Major operating expenses impacting venues
• Financial pressures affecting business sustainability
• How operators are adjusting their business models

These insights provide valuable context for both industry advocacy and operator decision-making.

Access the Full Report

The 2025 R&CA Industry Benchmarking Report includes extensive data, analysis and insights that go beyond what can be summarised here.

R&CA Members can access the report via the member portal.

Non-members can purchase the report to gain access to the full industry insights.

Access the report here: www.rca.asn.au/shop

Restaurant & Catering Australia supports operators across the country with industry advocacy, benchmarking data, and resources to help businesses run better. Learn more at rca.asn.au