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Hospitality Industry Review – THE LEVELLER NOBODY SAW COMING

ARTICLE FROM THE ZERVOS LAWYERS NEWSLETTER. The Hospitality Industry as we know it will change forever as a consequence of the COVID-19 epidemic. The reality, however, is that the epidemic is really a catalyst to what the Hospitality Industry was already going to endure. Well before this coronavirus epidemic, the Hospitality scene was facing a major adjustment given the significant issues Hospitality groups were facing regarding wage classification, higher rents, higher utility costs and generally speaking higher food and beverage costs. At Zervos Lawyers we have witnessed over the last two years the diminution in the value of Hospitality businesses because of the fact that the cost of running same were extremely high and as a consequence were no longer viable alternative business propositions, especially for new  ‘startups’. In Victoria we are also faced with a substantial proliferation of Hospitality venues  which has created a major oversupply of venues. The structure of some of these Hospitality Groups became corporatised and bureaucratic. Chief executive officers, Operation Managers, Human Resource Managers, were...