Industry News

Christopher Niesche July 13, 2012 The Age When it comes to collecting money from customers, cafes have traditionally been low-tech – a couple of gold coins for a coffee, maybe a card payment for a bigger order. But Shawn Karakashian, of Get York Coffee in Sydney’s CBD, is at the forefront of a revolution that is changing the way small businesses take payments and keep track of their customers. Karakashian is trialling the PayPal Here service, a smartphone application and small triangular card reader that fits onto the top of a phone to allow it to take credit card payments. It lets small businesses take payments on their smartphones wherever they are, and is one of several similar services being offered by major banks such as Westpac. Julian Josem, of retail specialist Josem Consulting, says consumers are increasingly demanding a wider range of payment options, especially mobile. Mobile payments “are…

Steve Lewis Herald Sun July 16, 2012 SMALL retailers, farmers and big-supermarket suppliers are facing carbon tax-related increases on everything from pizza boxes to transport. A fortnight after the Gillard Government’s climate change reforms came into effect, businesses are weighing up the cost of changes to the diesel fuel rebate and a massive spike in refrigerant gas supplies. Vegetable suppliers and chicken farmers are considering the costs of the carbon tax on their energy-reliant operations. And a staggering 300-400 per cent rise in refrigeration gas costs has shocked the industry. The Government also announced changes to its fuel rebate scheme from July 1. Kerry Demos, who runs the Hastings Pizza shop on the Mornington Peninsula with her husband Phill, said the price of pizza boxes would rise by 2.5 per cent – adding to their weekly costs. But they planned to absorb these increases rather than pass them on. “If…

Jane Harper Herald Sun July 14, 2012 THE retailer behind a string of chains including Katies and Millers has warned its profitability is tumbling as another wave of woe washes over the beleaguered sector. Specialty Fashion Group says full-year earnings are likely to have almost halved as consumers continue what increasingly appears an irreversible march to the internet. The latest downgrade follows a raft of similar profit warnings over the past year by a rollcall of the nation’s retail heavyweights. And it ends another bleak week for the sector that saw Darrell Lea, the venerable confectioner-cum-retailer, slide into administration and Myer unveil plans to cut 100 administrative jobs. Specialty Fashion’s share price fell almost 4 per cent yesterday after it warned that its profitability for 2011-12 had tumbled. The group expects to post earnings before interest, tax, depreciation and amortisation of $21 million to $22 million for the year to…

Valerina Changarathil The Advertiser July 16, 2012 FRUITS and vegetables will be delivered fresh from the farm to your doorstep in a new Australia Post program. For the first time you will be able to virtually `meet’ various farmers, see their farm and buy their produce at their prices through the internet. Australia Post’s pilot paddock to plate venture is called Farmhouse Direct and marries the country’s largest delivery network – servicing close to 10.7 million addresses every day – with local producers. The promise is to connect “you directly to the best local produce” and make local farmers markets and “artisan” produce an everyday experience, Australia Post communications manager Melanie Ward says. The pilot program started out as a collaboration with the Victorian Farmers’ Markets Association this year but its popularity has led to a national rollout involving 70 producers and 680 products so far. Australia Post has set…

AAP July 16, 2012 PIE maker Patties Foods expects full year profit to increase by up to seven per cent as it continues to develop new products in the face of difficult trading conditions. The maker of Four ‘n Twenty pies and other famous brands, such as Nannas and Herbert Adams, on Monday said its margins had come under pressure in the supermarket category as the popularity of private label products continued to grow. “The trading environment remains challenging with continuing margin pressure and low consumer sentiment,” Managing Director Greg Bourke said in a trading update. “However, we will continue to invest in developing new, innovative branded products and drive our long-term growth initiatives.” Patties, which recently launched a new chicken parma pie, said it expected net profit after tax (NPAT) for the year to June 30, 2012, to increase by between 4.3 per cent to seven per cent, in…

July 9, 2012 The Age FRANCHISEES have been reminded they are personally liable for their business decisions, even if the advice comes from head office. The warning comes in the wake of last week’s apology from Brumby’s Bakery, after it attracted criticism for advising its members, via an internal newsletter, to raise their prices and ”let the carbon tax take the blame”. The Franchise Council of Australia has sent a memo to its members reminding them of their legal obligations, and the dangers of blaming outside factors such as the carbon tax for raising prices if claims could not be proven. If the Australian Competition and Consumer Commission finds wrongdoing, it can issue warning letters, infringement notices of $6600 or take court action with fines up to $1.1 million. Franchise council executive director Steve Wright said it was a timely reminder for franchisees that they were considered individual businesses under…