'Times are tough': Warrnambool businesses hit by rising costs

Steven Phillpot, owner of the Hotel Warrnambool, said he had experienced a quiet winter.

Mr Phillpot said people had less money to spend on dining out due to the rising cost of living.

"We're trying to adapt but times are really tough," he said.

Mr Phillpot said people were spending less and going home earlier than they once would have.

He said while the rising cost of living was keeping more people at home, operational costs had skyrocketed.

"The operational costs for businesses are significantly higher," he said.

Finding qualified staff also remained an issue, Mr Phillpot said.

Bojangles owner Simon Mugavin said while he had experienced a busy winter, he was extremely concerned about rising costs.

"A bag of pizza cheese went from $103 to $144 a bag - that's in a period of about a year," Mr Mugavin said.

He said he was also anticipating the price of chicken to rise and was concerned about rising gas and electricity prices.

Mr Mugavin said he hoped he wouldn't have to increase prices because he knew people were already struggling to keep up with the rising cost of living.

"We'll just have to wait and see," he said.

A report compiled by Suncorp Bank this year revealed 40 per cent of people could no longer afford to dine out.

Suncorp Bank executive general manager everyday banking Nick Fernando said respondents reported a tough 12 months.

"It's been a tough year, with rising cost of living challenging many people," Mr Fernando said.

"It would come as no surprise that four-in-five people are actively trying to reduce their food costs, with younger generations making the biggest effort to curb spending.

"While two-in-five people told us they have stopped dining out to save money, that number rises to one-in-two for millennials."

Australian Bureau of Statistics head of business indictors Ben Dorber said households were tightening their belts when it came to some expenses.

"Spending on discretionary goods and services was down for the third straight month, falling 0.7 per cent over the year, as households adjust to cost of living pressures," Mr Dorber said.

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