Accommodation and food services industry

Running an accommodation or food services business is often hands‑on. Customer demand, staffing and costs can change quickly.

How businesses operate

Many businesses in this industry are owner operated. Some operate year‑round, while others rely on peak seasons or tourism.

Businesses often have:

• long or irregular trading hours
• high customer interaction
• a mix of permanent, casual and seasonal staff
• ongoing costs such as rent, utilities and supplies.

Demand and competition

Customer demand can change quickly. Competition is often high, especially in popular areas.

Demand often depends on:

• location and local population
• tourism and travel patterns
• time of year and weather
• economic conditions.

Digital tools

Many businesses in this industry use digital tools to support daily operations. Technology can save time, but it can also introduce new risks like cyber threats.

Common tools include:

• online bookings or reservations
• payment and ordering systems
• delivery platforms
• online marketing and reviews.

Risks and challenges

Common challenges include:

• fluctuating income
• rising costs
• staff shortages
• reliance on online systems.

Planning for these business risks can help you stay resilient.

Industry statistics

Data can help you understand how businesses in this industry perform and how your business compares.

You can:

• explore annual estimates of industry income, costs, profit and capital expenditure at the Australian Bureau of Statistics
• compare your business's performance against similar ones using the Australian Taxation Office's small business benchmarks
• get the latest job market trends and insights at Jobs and Skills Australia.

These are some of the main laws:

• Competition and fair trading laws are set out in the Competition and Consumer Act 2010.
• Rules about pricing, refunds, contracts and advertising are set out in Australian Consumer Law (ACL).
• Food or drinks sold by weight or volume (including pre‑packaged items) must follow national trade measurement laws.
• All food sold, processed or handled for sale in Australia and New Zealand must comply with the Food Standards Code.
• Most food items sold in shops and other retail settings need country of origin food labelling.
• Businesses that serve seafood for immediate eating must say where it comes from in line with seafood labelling laws.
• Businesses that operate under a franchise agreement must follow the Franchising Code of Conduct.

Trading hours and public holiday rules

State governments set the days and hours a business can open and trade.

Find out the trading hours in your area:

• New South Wales
• Queensland
• South Australia
• Tasmania
• Victoria
• Western Australia.

The Australian Capital Territory and the Northern Territory don’t regulate trading hours.

Local councils and state or territory governments manage most licence and permits in this industry. What you need depends on your business type, location and the services you offer.

You may need a licence or permit to:

• prepare or sell food
• sell alcohol to consume on site or take away
• start or build an accommodation business
• put up and display signage, such as shop signs
• open on restricted trading days, such as Good Friday
• have outdoor dining
• play videos or music in your business
• dispose of waste.

Keeping customers safe from food-related illnesses is essential for businesses who handle food.

Businesses must follow food safety standards. These are national standards for storing, handling and serving food safely.

Your state or territory government can tell you the right steps to take for your business, including any food safety programs and training they offer. Contact your local food regulatory agency.

All businesses have a duty of care for work health and safety (WHS) and must take reasonable steps to keep staff, customers and visitors safe.

Safe Work Australia has information for businesses about WHS duties and managing risks for:

• accommodation services
• food services.

Check out the Australian Taxation Office’s (ATO’s) information about goods and services tax (GST) for:

• food
• commercial residential premises, such as hotels.

Understanding how the tax rules apply to this industry can help you avoid common mistakes.

The accommodation and food services industry is one of Australia’s largest employers. The industry commonly hires:

• casual and part‑time workers
• younger or entry‑level staff
• workers with specific skills, such as chefs or baristas.

Hospitality businesses can have high staff turnover. Use workforce planning to help avoid staffing shortages and skill gaps.

Make sure you know which workplace laws you need to follow before you create an employment contract.

Energy use and costs

Accommodation and food services businesses may use a lot of energy and water. Managing your environmental impact can affect operating costs and customer expectations.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has tips for reducing your energy costs in:

• food and grocery stores
• hotels.

Reducing energy use through your hot water, kitchen, laundry and refrigeration appliances can help you save money. Find out how to choose the most energy-efficient appliances on the Energy Rating website.