Industry Analysis & Industry Trends
The Social Clubs industry has faced some turbulent times. Before 2008-09, a steady increase in gaming machine numbers and lax smoking laws aided industry prosperity. However, the introduction of caps on the total number of gaming machines allowed in each club by various state governments, and the impact of the global financial crisis, hampered industry growth. For an industry that now derives close to 60% of its revenue from gambling, these have been unwelcome developments. Furthermore, the effect of smoking bans introduced in the early 2000s has constrained industry revenue. Industry revenue derived from non-gambling activities is expected to remain mostly flat over the five years through 2013-14... purchase to read more
Industry Report - Industry Investment Chapter
The Social Clubs industry exhibits a medium level of capital intensity. Traditionally, the industry has heavily relied on labour to deliver a number of core industry services such as food and liquor preparation, customer service and entertainment. However, due to ownership of buildings and the capital intensive nature of gaming machines, the industry's capital intensiveness has increased over the past decade. In 2013-14, IBISWorld estimates that the industry's labour-to-capital ratio is 1:0.21, meaning that for every $1.00 the industry pays as wages, a further $0.21 is required for capital investment.
The industry, like others across the hospitality sector, is labour intensive in all areas of operation... purchase to read more