1 IN 13 HOSPITALITY BUSINESSES FACE CLOSURE WITHIN THE YEAR
Australia’s biggest names in the hospitality industry have gathered today, calling on the federal government to provide much-needed assistance.
With the cost-of-living crisis deterring patrons and escalating tax bills and insurance premiums leading to closures, the sector has united to say “enough is enough”.
The All Nations pub in North Richmond had stood for more than a century, but it had never felt the pinch more than it did now.
Owner Bob O’Kane said the price of beer had even soared, leaving patrons and publicans grappling with the financial strain.
“It’s really hard at the minute and costs keep going up,” he said.
“It’s very difficult for people to afford the weekly visit to the pub, we try and keep our costs down, but our profits shrink, and the customers become fewer and fewer.”
Australian Hotels Association president David Canny said mounting financial pressures were hurting the industry.
“We will keep fighting for those to survive but what we do know is the pressure is mounting as the costs rise,” he said.
“People are choosing pubs which is great, but our operators are telling us that the cost of labour, the cost of goods, power and energy and insurance those sorts of costs are just mounting up.
“Every pub that closes, the community is worse for that, and we need pubs to survive communities need neighbourhood community pubs.”
It comes as leading restaurant owners in Sydney to call for a survival plan for the industry.
A CreditorWatch report released last week predicted one in every 13 hospitality businesses faced closure within the year >>> One in 13 hospitality businesses facing failure in 12 months; B2B payment defaults hit record high | CreditorWatch
