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Mike's Minute: Hospo - a boom or a bust? · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks. It be
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• 0:16
  Speaker 2: I've got the press release from the Restaurant's Association on Friday,
• 0:19
  Speaker 2: flat sales, cost pressures, regional divergence. That was the theme.
• 0:23
  Speaker 2: Now I've changed my mind a little bit on HOSPOW
• 0:25
  Speaker 2: of late, I wonder more broadly whether there are too
• 0:28
  Speaker 2: many vested interests in this country who get in the
• 0:30
  Speaker 2: way of real progress. Now, the Hospow story has been
• 0:32
  Speaker 2: a long, arduous and well told one. Of course, hospbo's shot.
• 0:36
  Speaker 2: Hospo's a disaster. No one makes money in hospital, no
• 0:39
  Speaker 2: one wants to work in hospow. And yet my increasing
• 0:41
  Speaker 2: observation is that is not true. If you take a
• 0:45
  Speaker 2: very large industry as a whole and average everything out,
• 0:48
  Speaker 2: you might well be able to find some doer times.
• 0:50
  Speaker 2: But what's increasingly obvious from not just personal experience, but
• 0:53
  Speaker 2: a lot of anecdotal expert opinion is a lot of
• 0:55
  Speaker 2: HOSPO is not only fine, it's actually going quite well.
• 0:58
  Speaker 2: The thing about HOSPO is it's makeable. You are not
• 1:01
  Speaker 2: a log exporter reliant on a single market to either
• 1:03
  Speaker 2: buy or not buy your tree. In HOSPO, you can
• 1:07
  Speaker 2: vary what it is you're offering and what I see
• 1:09
  Speaker 2: as a lot of people doing really good things, and
• 1:11
  Speaker 2: as a result they're doing very nicely thank you. For example,
• 1:14
  Speaker 2: it took us over a week to get a last
• 1:17
  Speaker 2: table for lunch the other day at a local a week.
• 1:19
  Speaker 2: That's in our experience. They've changed, they've changed hands, they
• 1:22
  Speaker 2: boosted their product offering, and as a result they've gone
• 1:24
  Speaker 2: from a quiet regional operator to a booming tourism business
• 1:27
  Speaker 2: rushed off its feet, same place, same name, new product,
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  Speaker 2: whole different result. The other thing about HOSPO is it
• 1:33
  Speaker 2: doesn't require any skill to enter. Anyone can buy a
• 1:35
  Speaker 2: cafe and a lot do and I've seen them often immigrants.
• 1:39
  Speaker 2: It's an easy entry point. They take over a going concern,
• 1:42
  Speaker 2: the recket, change the men you employ, the family kill,
• 1:44
  Speaker 2: the service dead in a week. We're over supplied, of
• 1:46
  Speaker 2: course with hospitality outlets. So in your area where you've
• 1:50
  Speaker 2: got a choice of a dozen places, only two have
• 1:52
  Speaker 2: to be good before they boom and the others wilt.
• 1:54
  Speaker 2: So the restaurant association telling us things aren't flash is
• 1:57
  Speaker 2: not the real story. I don't think bits aren't flash,
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  Speaker 2: but then if you're not up to much in the
• 2:02
  Speaker 2: first place, they never will be.
• 2:04
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