Yahoo Finance Melbourne restaurant bucks cost-of-living trend with 'crazy' decision: 'I'd eat there every day'
Owner Jimmy has revealed why he's able to charge just $7 for a pizza and $6 for a glass of wine.
The cost of living crisis has led to many Aussies cutting back on dining out because they simply cannot afford that small luxury. They've even been warned a main meal at a restaurant could soon climb to $60 due to skyrocketing grocery prices.
But people could dine like a monarch if they visited an Italian cafe in Melbourne, whose prices seem to be stuck in the early 2000s. It's hard to imagine only paying $7 for a pizza and $6 for a glass of wine, but that's what you'll find at Cafe Perri.
The owner, Jimmy Perri, told Yahoo Finance he has felt the pressure of rising food prices, but he wants his customers to have an escape from that.
Do you have a story? Email stew.perrie@yahooinc.com
"When a customer comes to me, I feel like reversing the situation," he said.
"I want them to pay less and get good quality. This is the motto: less and best quality."
The most you'll pay for a large pizza at Cafe Perri is $17, while the most expensive pasta will set you back just $15.
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His small pizzas cost between $7 to 8.50, which is fractionally dearer than a frozen pizza you'd buy from Coles or Woolworths.
Despite suggestions your average cup of coffee could set you back as much as $6 in Australia, you'll pay half that at Jimmy's cafe. Espressos are just $2.50 and takeaway lattes or cappuccinos are only $3.
Jimmy said it's all about making the customer feel like they don't have to give an arm and a leg to enjoy food outside of their own kitchen.
"By the end of the day, I know you can have more money, more profit, but what is remaining is a good experience to the customer so they feel that the price was good," he told Yahoo Finance.
He said customers have been "amazed" they can have a whole meal for less than $20 and that's why he keeps his prices low.
"If the public support us, we can support to keep this price," he said.
'This place deserves to be busy'
It's clear he's won the support of the public, with people praising him for not trying to squeeze customers.
"Places like this deserve to be so busy they have to turn people away," wrote one person. "We see businesses taking customers for a ride far too often, so seeing a place that’s stayed honest and kept prices as low as they can deserves all the business they can handle."
"I’ve no idea how it’s so cheap, I run another local business in the area and no way in the world would we be open at these prices," said another.
A third added: "Crazy low, I’d be eating there almost every day. I can’t even make pasta at home for $11."
When asked how his prices can stay so low, Jimmy said his team worked "extra hard" to keep his profit margin moving in the "right direction". He said he doesn't skimp on food quality and makes his pizza and pasta in a "unique" way that keeps customers returning.
His cafe has dozens of 5-star reviews on Google and many call it a "hidden gem" that's bursting with "great hospitality".
Dire times for the hospitality industry
While Aussies have been enduring the pain of more expensive groceries, restaurants, cafes, pubs and other establishments are also feeling the heat.
Melbourne chef Teage Ezard had to close his restaurant, Gingerboy, after nearly 20 years in business.
He issued a dire warning that the hospitality industry was in crisis and many businesses were finding it impossible to keep doors open unless they increased prices.
"Wages have increased, power and gas, amenities have all increased - and the menus have not," he told 9News.
He said prices could soon hit $50 for a main meal while other restaurant staples could even go up to $60.
“You pay for what you get... and I think... that's what it costs,” he added.
Recent Finder research showed half of Aussies (51 per cent) were cutting back on eating out and drinking out, while more than a third (36 per cent) had limited how often they go out to events like movies, sports games and concerts.
Retail spending has also taken a dive this year as Australians struggling with rising costs tighten their budgets. According to new data released by the Australian Bureau of Statistics, retail spending slipped 0.4 per cent in March, well short of economists’ expectations of an 0.2 per cent increase.
There was $151 million less spent in March than the month prior. The seasonally adjusted figures showed total turnover to be $35.7 billion.
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