🦘 Concerning Unemployment Indicators, Popular Pizza Chain Goes Into Administration, Aussies Spend $1 Billion In Card Surcharges

G’day everyone!

Here’s what we’ve got in store for you today:

• Concerning Unemployment Indicators

• Popular Pizza Chain Goes Into Administration

• Aussies Spend $1 Billion In Card Surcharges

Let’s have a look at the market snapshot before jumping into the news:

Job Ads Drop Spells Unemployment Fears

Hold onto your resumes, folks! Australia's job landscape is looking a bit shaky, with the ANZ-Indeed Job Ads report showing a 2.8% drop in job listings from January to February 2024.

This isn't just a blip on the radar; it's a 12.4% dive compared to last year, signaling a potential uptick in unemployment from the current 4.1%.

While we're still living the high life compared to pre-pandemic job ad levels (up 37.8%), this downward trend has economists and job seekers alike biting their nails.

The tech sector seems to be leading the retreat in job ads, while healthcare and education are on a hiring spree, desperately seeking more hands on deck.

The geographical spread of this decline is most pronounced in Victoria, South Australia, and Western Australia, with NSW not far behind. 

Despite this, education and healthcare sectors are the silver lining, especially for doctors and nurses, showing resilience in the face of a general downturn.

So, while the job market might be cooling, it’s not all doom and gloom, depending on where you look.

Pizza Chain Teeters on the Edge

Bondi Pizza, a beloved NSW pizza chain known for its large and lively venues, is facing a crunch time with administrators stepping in and the "For Sale" sign going up.

The chain, with prime spots in Parramatta, Macquarie Park, and Westfield Eastgardens, is teetering on the brink, thanks to what's been dubbed "adverse trading conditions" post-Covid. 

The Randwick outlet, however, seems to be dodging the bullet for now.

The drama unfolds as the business, helmed by Gary Linz, grapples with significant debts, including a hefty tab with the Australian Taxation Office (ATO).

With 120 jobs hanging in the balance, administrators are scrambling to concoct a rescue recipe that could include a business makeover or outright sale.

This turmoil isn't isolated.

The hospitality sector is under the cosh, with notable closures and liquidations painting a grim picture of the industry's post-pandemic recovery.

From the collapse of a popular Oporto franchise to the shutdown of cherished local cafes, the narrative is consistent: the hospitality industry is navigating through a storm, with thin margins and high inflation making survival a tough order.

Swiping Left on Surcharges: Aussies Lose Nearly a Billion Bucks

Aussies are coughing up almost a billion a year in card surcharges, and the RBA's not happy about it. 

The solution? A fancy term called "least-cost routing" (LCR) that's not getting the love it deserves.

This scheme could cut down on those pesky fees by choosing the cheapest way to process card payments, meaning more moolah stays in your pocket instead of vanishing into thin air every time you tap to pay for your avo toast.

But here's the kicker: only 64% of business terminals are playing ball with LCR, and the banks? Well, they're accused of dragging their feet because, surprise surprise, they make less dough this way.

Brad Kelly from Payment Services calls it an "exploiting" move, with banks allegedly overcharging merchants big time, pushing them to pass the cost onto us, the innocent card-tapping public.

The RBA's Michele Bullock is waving a regulatory stick, threatening to make LCR mandatory if banks don't hit an 80% target by mid-year.

Small businesses and consumers alike could benefit big time, but with some arguing that a one-size-fits-all mandate could be too simplistic, the saga continues.

Will the banks buckle, or will card-carrying Aussies continue to lose out?

Accenture Amps Up Aussie Base with The Lumery Buy

Accenture has snapped up Melbourne's marketing tech whiz kids, The Lumery. 

This isn't just any acquisition; it's set to supercharge Accenture Song, their tech-creative powerhouse, with some serious martech (marketing technology) muscle.

Think of it as adding a turbo boost to an already souped-up engine.

The Lumery, born in 2017 out of a desire to simplify the martech maze, is bringing its A-game and some heavyweight clients like Coles and Qantas into Accenture's fold. 

While they're keeping the price tag under wraps, it's clear Accenture is doubling down on their Aussie operations, having already bagged customer insights firm Fiftyfive5 last year.

Mark Green from Accenture Song is all about leveraging tech to dive deep into what Aussie customers want, especially with the buzz around generative AI.

The Lumery's knack for making sense of the fragmented customer experience scene is exactly what Accenture's clients are craving.

This deal isn't just a win for Accenture; it's a signal to Aussie businesses that the martech revolution is here.

With Forrester predicting the global martech sector to balloon to US$216 billion by 2027, Accenture and The Lumery are gearing up to lead the charge.

That’s All!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, have an awesome day folks!