From the sale of a $34 zesty prawn pizza, Jane MacSmith - the owner of Matilda’s restaurant at Nambucca Heads - hopes to keep $1 to $2.
“There isn't a lot of money we're taking home from that at all. And I just don't think people realise that,” she told the Mid North Coaster.
“The government collects about $3 in GST, then tax on whatever's left, if there is any.”
Tough time for trade: MacSmith is one of many small business owners reckoning with higher trading costs and, as of October 1, a ban on card surcharges.
MacSmith said the change, introduced by the federal government, would sting local businesses – but is really just one in a long string of events that have made running a business near impossible.
“It feels like we're always being put in a position where we're looking two or three months ahead, and there's going to be something else that's going to impact us,” she said.
The Matilda’s story: Now a Nambucca Valley councillor, MacSmith opened Matilda’s in Nambucca Heads during Covid after many years in the hospitality industry.
Since then, she claims costs have skyrocketed - for wages, power, fuel, insurance, interest rates and more, with wage and superannuation bills increasing by more than 30 percent in five years.
“If an 18-year-old who has never worked in hospitality before comes in, from the day that they pick up a glass of wine for the first time on a Saturday, it's about $45 an hour including super,” MacSmith said.
The power: Aside from staff, MacSmith said gas and electricity costs total more than $45,000 a year.
“My electricity has gone up by 50 percent and my gas has doubled,” she said.
Making it work: MacSmith said she has “absorbed” the cost increases for years, redesigning menus, negotiating with suppliers and reducing spending on ingredients.
The restaurant has even pivoted to offer a broad range of seafood, despite originally having a pizza focus.
Costs have to go up: Despite her attempts, MacSmith said she was forced to increase prices a month ago to cover costs.
“We don't want to raise our prices. We do not want to charge you more, but we physically can't absorb it,” she said.
Competing with machines: MacSmith also raised the issue of local restaurants competing on price with venues - like clubs and pubs - which are “propped up by pokies”.
“For your local cafe or restaurant, we don't have that other revenue line, and we're competing with these big clubs and hotels and RSLs on price,” she said.
“People ask why they can get a schnitty for $15 at these venues while our pizzas cost $34.”
Common problem: Up the road at Nambucca Surf Co - a surf shop and cafe - owner Jimmy Daniels has experienced similar price jumps since he opened 13 months ago.
“The cost to get our milk and things delivered has I think doubled,” he told the Mid North Coaster.
“The fuel cost has obviously gone up a lot too, which pushes everything up, including the cost of products.”
Daniels and his wife both work jobs outside the business to cover costs.
He believes ongoing high fuel prices will eventually lead to increased prices for retail products - such as hats or shirts - made in Asia.
“The cost has to be passed on somewhere,” he said.