As the Melbourne Cup approaches, hospitality tech provider Quantaco is urging venues to turn data into strategy and use insights on staffing, sales and product mix to ensure the race that stops a nation also delivers to the bottom line.
In 2024, more than 11.5 million Australians engaged with the Melbourne Cup, generating over $1bn in pub and hospitality spending. With that level of opportunity, Quantaco Executive Director of Platform Services Mitch Stone says data-driven preparation is key to ensuring profitability.
“Whether it’s a luxury seated luncheon or a high-density canapé party, it is your revenue safety net. It’s a non-negotiable,” Stone said, highlighting the importance of fixed-price, pre-booked food and beverage packages.
“Pub culture is changing, and work-organised events are a huge part of the Cup. You need to offer more than just unlimited booze. You need a food and beverage offering that fits the demands of a diverse, modern workplace where not everyone drinks.”
Stone said controlling bookings gives operators predictability and helps offset staffing costs. “Walk-ins will always be a decent percentage of your revenue, but they don’t always stay long and won’t show up if the weather is bad. It’s better to treat them as the ‘cream on top’ of the locked-in revenue from your bookings.”
Bookings also make rostering more efficient, with Stone advising operators to use point-of-sale data to match staffing levels to demand. “With venues having a wage cost percentage ranging from eight per cent to 35 per cent based off a huge variety of factors, using a tool like Quantaco’s Salesline to map your Point-of-Sale data vs. staffing costs gives you a sense of who you need and when you need them.
“Our clients find they need the most staff to cover the pre-race crowd who are there for the prelunch function. The beauty on a day like Cup Day is you can react by – sending home your Flexible Staff as necessary, you just need the numbers.”
Quantaco’s data shows that Cup Day produces two clear sales peaks – before and after the race – with a third surge later in the evening as patrons move from workplace events to pubs and bars. However, Stone noted that staffing doesn’t always mirror the profit curve.
“Most shrewd operators schedule staff aggressively for the initial rush leading up to your race day event, which tends to start at 11am in Victoria due to the public holiday and 1pm across the rest of the country, but often those staff are rostered to finish as demand begins to lull,” Stone said.
He added that the staffing challenge is magnified in Victoria, where double-overtime public holiday rates increase labour costs, while venues elsewhere in Australia benefit from similar demand with lower overheads.
When it comes to product mix, Stone said successful operators use supplier partnerships and promotions to find margin and align with consumer expectations.
“This strategy allows you to find margin through better value stock while simultaneously piggybacking off supplier brand recognition,” he said.
And while Champagne may dominate perceptions, the data tells a different story, as Stone explained.
“The perception is that Champagne sales absolutely dwarf everything else, but our data shows a different story with beer leading the early part of the day,” he said.
“Just before the gates drop around 3pm, sparkling sales skyrocket. Champagne alone accounts for over 30 per cent of wine sales, while sparkling whites, as a group, represent a massive 80 per cent of all wine sales during the race period. Venues leveraging package deals that include a glass of premium sparkling on arrival are perfectly positioned to capture this surge.”
He also advised operators to plan service flow strategically. “I’d also advise venues to steer punters away from cocktails when the bar is four deep. The time constraints at the busiest moment of trade are just too restrictive.”
Stone added that his team will celebrate Cup Day at a client venue, the Royal Albert in Surry Hills.
“The Cup is a fantastic cultural moment, but for hospitality, it’s a financial equation,” he said. “The venues that win aren’t the ones relying on luck. They’re the ones using intelligence, like what our team of hospitality experts provides and our software supports.”