Australia’s restaurant and café sector is staring into the abyss, abandoned by a federal budget that offered little more than token gestures and pushed a once-thriving industry to the brink. In response, the Australian Restaurant and Café Association (ARCA) has roared into action with its new “Positive Hospo” campaign, a powerful and unapologetic political movement to fight for policy change in the run-up to the 2025 federal election.
Backed by thousands of industry voices and some of the nation’s most iconic hospitality leaders, ARCA’s message is clear: “The time for polite advocacy is over.”
“We are at breaking point,” declared ARCA CEO Wes Lambert, with the urgency of a leader who refuses to watch an industry collapse in silence. “Costs are up. Tourism is down. Staff are scarce. Profits are vanishing. And yet, the Federal Budget offered little more than a beer excise freeze and a power rebate. It’s not enough. Hospitality has been left to die — and we will not stand by.”
A Sector in Freefall
The crisis is real — and growing. According to recent data from CreditorWatch, 9.3% of hospitality businesses have already entered insolvency. That equates to more than one in eleven venues facing closure this year. These numbers don’t just represent businesses — they represent communities, workers, families, and the very culture of Australian cities and towns.
Hospitality is one of Australia’s largest private employers, encompassing over 56,000 restaurants and cafes and employing more than 500,000 Australians. Yet, thanks to spiralling costs, suffocating regulation, and chronic worker shortages, profit margins have shrunk to below 4%—an unsustainable figure that is draining the industry.
“This isn’t just an economic collapse,” Lambert continued. “It’s a cultural one. Every time a restaurant closes, a community loses a piece of itself — jobs, joy, and human connection.”
Positive Hospo: A Campaign That Means Business
With the federal election now set for 3 May, ARCA places hospitality squarely on the political agenda with its Positive Hospo campaign. At the heart of this campaign lies a comprehensive 10-Point Policy Plan, championed by ARCA and designed to give the industry a fighting chance:
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Remove Fringe Benefits Tax (FBT) on hospitality – now a confirmed Coalition policy
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Freeze alcohol excise increases for 24 months – adopted by both major parties
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Eliminate income tax on tips (gratuities)
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Introduce a digital tax rebate for hospitality tech investments
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Fee-free VET for hospitality qualifications
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Support apprenticeships and traineeships – announced in the Coalition’s Budget Reply
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Maintain current junior wage rates
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Reinstate café and restaurant managers on the Core Skills Occupation List (CSOL)
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Index Temporary Skilled Migration Income Threshold (TSMIT) to Fair Work outcomes
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Increase working hours for international students
These reforms are not pipe dreams—they are achievable, necessary, and backed by industry leaders. Thanks to ARCA’s persistent lobbying, several have already been adopted or promised by federal parties.
A Seat at the Table, A Voice for the Future
ARCA’s new era of activism isn’t just about policy. It’s about visibility, unity, and strength in numbers. From March 31 to April 2, ARCA will convene over 1,100 members and board leaders across Sydney, Melbourne, and Brisbane to launch the Positive Hospo campaign in full force. The events will rally the sector to rise together and demand recognition, respect, and reform.
The association’s leadership includes executive-level representatives from Lucas Restaurants, Fink Group, House Made Hospitality, Delia Group, Van Haandel Group, and more — uniting under one voice for a future where hospitality thrives.
“We will not let this election pass with hospitality ignored,” said Lambert. “The next government must choose: stand with us and help rebuild, or be remembered as the one that let it all fall apart.”
Advocacy That Delivers
ARCA’s advocacy has already yielded tangible results. In FY25 alone, the organisation secured:
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Retention of Cooks and Chefs on the national Core Skills list
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FBT reform gaining ground in federal election manifestos
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A $12,000 apprentice and trainee wage subsidy in Opposition Leader Peter Dutton’s budget reply
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Excise relief extended for alcohol producers and venues
Now, with a powerful coalition of voices and voters behind it, ARCA is gearing up to fight the most crucial battle in its history.
This election is a pivotal moment — a chance to protect an industry and a way of life. With Positive Hospo, ARCA isn’t asking for charity. It’s demanding what’s right: the opportunity for Australia’s hospitality industry to survive, recover, and thrive once again.
For more information or to join the movement, visit https://arca.org.au/.
