Hospitality boss Justin Hemmes has been forced to defend his food and beverage prices after a fiery interview about the cost of dining out at Sydney’s multimillion-dollar football stadium.
Concerns about the affordability of food and beverages at the newly revamped Sydney Football Stadium were raised in a heated interview with 2GB host Jim Wilson.
Mr Hemmes’ Merivale group has taken over the catering for the sportsground, which recently reopened after a $828m taxpayer-funded rebuild, as well as the Sydney Cricket Ground.
Stream every game of every round of the 2022 NRL Telstra Premiership Season Live & Ad-Break Free During Play on Kayo. New to Kayo? Start your free trial now >
Although he appreciated the quality of the new food and beverage offerings, Wilson said the cost of eating and drinking at the stadium was “exorbitant” and unaffordable for families.
Mr Hemmes hit back at the criticism and argued Merivale had introduced a range of products to give people choice.
“It’s not exorbitant,” he said.
“We have entry point offerings with an improved quality at the same pricing.”
Wilson noted the price of beer starts at $9.30 and tops at $13.40 for premium Stone & Wood beer, which is far beyond the retail price at Dan Murphy’s.
He called on the pub baron to make the food and beverages more affordable, akin to the prices at the alcohol chain or at bargain retailer Costco.
“That is not a fair comparison,” Mr Hemmes hit back.
“You’re talking very different businesses and completely different business models. You can’t compare Dan Murphy’s to an operation at the stadium.”
The hospitality giant, a veteran of hospitality for more than three decades, pointed out that the cost of a Tooheys New beer was only a dollar more than most Sydney pubs.
He also noted that price didn’t deter footy fans, with the premium $13.40 beer being the best-selling choice “by far” for the stadium’s first three matches.
The owner of an estimated 70 pubs said he employed 1000 staff to run the 14 hospitality stalls at the stadium for two to three hours.
The “incredibly expensive” cost of operations currently outweighs the profit, according to Mr Hemmes.
“To put on the entertainment, to put on the food, to put on the beverages and everything that goes into it, it is one of the most expensive hospitality businesses to run,” he said.
“We can’t lose money because then we’re not even there to sell (food and beverages).”
The heated argument about cost comes as Mr Hemmes continues to be embroiled in a prolonged legal battle over alleged wage theft.
The pub baron’s Merivale company is accused of underpaying thousands of employees by $74m over six years.
The class action lawsuit was launched in early 2020 and is still ongoing. Mr Hemmes denies any wrongdoing.
