HOSPITALITY’S WORKFORCE SHORTAGE: TIME FOR A MORE PRACTICAL APPROACH

Australia’s hospitality industry is facing a workforce challenge that shows little sign of easing. More than 40,000 vacancies are currently estimated across hotels, pubs, restaurants and bars, with regional venues particularly exposed. For operators, the consequences are already familiar – difficulty filling shifts, reduced operating hours and increasing pressure on existing teams. With changes to migration settings potentially reducing the supply of skilled workers, the industry is warning that the problem could become even more difficult.

The shortage is not simply about the number of people available for work. It is also a skills and retention issue. Chefs and experienced kitchen staff remain among the hardest roles to fill, while capable supervisors and managers can also be difficult to find. The hospitality sector has grown since the pandemic, but its workforce has not kept pace, while experienced employees have moved into other industries. For venues, this creates a double challenge: attracting new people while finding ways to keep the experienced staff they already have.

There is also a structural issue within the club and pub sectors that deserves more attention. As more venues have moved away from operating their own kitchens and catering operations towards leasing food and beverage outlets to external operators, some of the traditional pathways for hospitality apprentices have disappeared. While leasehold arrangements can provide commercial and operational advantages, fewer venues directly employing chefs and kitchen teams can mean fewer opportunities to train apprentices in these high-priority occupations. This creates a longer-term workforce problem: the industry needs qualified chefs, but some of the businesses that traditionally provided the training environment are no longer doing so.

Migration has been an important part of filling that gap, particularly for skilled kitchen and management positions. However, industry bodies argue that migration should not be viewed as the only answer. There is also a need to build a stronger domestic workforce pipeline by making hospitality careers more attractive, supporting apprenticeships and removing some of the financial and practical barriers that prevent people from entering the industry.

This is where Tasmania provides an interesting example. Hospitality Tasmania has allocated $15,000 to provide free Responsible Service of Alcohol training for eligible young people aged 15 to 24 in Hobart, Launceston and Devonport. The initiative forms part of a broader three-year workforce development agreement worth $2.55 million, aimed at strengthening skills across Tasmania’s hospitality and tourism industries. By removing the upfront cost of an essential qualification, the program gives potential employees a simpler pathway into their first hospitality job.

For venues, the lesson is worth considering. Entry-level qualifications can be a genuine barrier for young people who are interested in hospitality but uncertain about where to begin. Helping prospective employees obtain the basic skills they need could give venues access to a wider pool of candidates while introducing young workers to the industry earlier. Tasmania’s approach also recognises that hospitality can be more than a short-term job, providing a pathway into supervisory, management and specialist roles.

There are also practical steps individual venues can take. An obvious example could be for venues to assist with the fund for RSA, RCG and drink/coffee making courses, with new entry level staff to pay back the investment over time or return the investment based on length of service.  Recruitment should extend beyond simply advertising vacancies when a position becomes available. Building relationships with local schools, TAFEs and training providers, offering work experience and structured entry-level roles, and actively promoting hospitality as a career rather than a casual job can help create a future pipeline. For clubs and pubs that have moved to leasehold food operations, there may also be an opportunity to work with their catering operators to support apprenticeships and provide a pathway into the broader venue workforce.

Keeping good people is just as important as finding them. Competitive pay is only one part of the equation; predictable rosters, genuine opportunities to learn and progress, good management and recognition can make a significant difference to retention. Managers should also look closely at how much unnecessary pressure is being placed on existing teams when positions remain vacant. A venue that develops people, gives them a reason to stay and provides a visible pathway from entry-level work to skilled and management positions is likely to be better placed to compete for labour.

At the same time, industry leaders are calling for greater investment in training at a national level. The Australian Hotels Association has argued that more of the funds employers contribute to the Skilling Australia Fund should be directed towards hospitality skills development. Greater support for apprenticeships, particularly in commercial cookery, along with renewed incentives for hospitality traineeships, could help strengthen the pipeline of Australian workers entering the sector.

For club, pub and hotel managers, the workforce shortage means recruitment and retention need to be treated as an operational priority rather than simply an HR issue. Building relationships with local training providers, creating clearer career pathways, investing in junior staff and making workplaces attractive to experienced employees can all help reduce dependence on an increasingly tight labour market. As Stephen Ferguson, National CEO of the Australian Hotels Association, puts it: “Our sector’s priority has always been to employ Australian workers: but where are they?” The answer may partly lie in making it easier for the next generation to get through the door in the first place.

 

Sources:

AHA – MIGRATIONCUTS100826.pdf

Hospitality Tasmania offering free RSA training – Bars and Cocktails

Hospitality Skills Shortage in Australia: What It Means for You