Concerns have been raised by a hotel advisory firm, PJT Accountants that new laws under consideration by the Queensland Government may severely negatively impact the hotel industry. Under these new laws, grocery stores would be able to sell alcohol – a move which the firm fears will affect the hotel industry.
Speaking to theShout.com.au a partner at the firm, Wayne Patten detailed how he had met with Attorney General, Jarrod Bleije who has responsibility for the state’s liquor and gaming portfolio, raising with him concerns for hotels.
This year the Newman Government released a discussion paper which requested input on the future of Queensland’s liquor and gaming laws and one of the issues tabled was whether alcohol should be sold in supermarkets.
This is what the article on TheShout.com.au reported on the interview with Patten:
Patten said grocery operators such as Aldi and IGA claim to be unfairly discriminated against by not being able to sell alcohol in a similar way to mega chains Coles and Woolworths.
He said he explained to Bleije that in order to obtain this competitive advantage, Coles and Woolworths were required to purchase a local hotel to obtain the necessary liquor licence, an astute move overlooked by smaller operators and a significant investment which saw positive growth in business valuations throughout the industry.
“These businesses have committed hundreds of thousands of dollars into purchasing and setting up detached bottleshops, and in the process employing thousands of Queenslanders,” he said.
Patten, who previously owned a pub himself and still represents many hoteliers through PJT’s specialist hotels division, said many Queensland hotels are currently “hanging on by a thread”.
“In some cases bank valuations are just 50 per cent of the value they enjoyed just four to five years ago when the industry was booming,” he said.
“Many hoteliers are committed to long-term leases, negotiated when the market was buoyant. In this much tougher market, margins are thin but the lease outgoings remain constant.”
Patten went on to explain that his firm’s belief was that the valuations of hotels were going to severely decline as a result of supermarkets being able to sell alcohol, an opinion which he says is shared by leading banks and bank panel valuers. This is because as grocery stores begin to sell alcohol, there would be a reduction in bottleshops sales which will ultimately translate to a reduction in profits and therefore lessen the value of the hotel, according to Patten and his firm.
Another important aspect to consider is the impact increased alcohol sales will have on the community. In order to minimise the damage done because of alcohol abuse and binge drinking, it is important anyone involved with the sale of alcohol undergo Responsible Service of Alcohol training.
RSA training is a mandatory requirement for staff of licenced venues and if grocery stores do begin to sell alcohol, staff should undergo the training in order to minimise the impact on the community by learning how to serve alcohol in a responsible manner.