Cafes beg govt. for help with slim profits.

In Australia, a simple cup of takeaway coffee may soon cost more than $7, causing concern among cafe owners in one particular state. The Corner Store Cafe in Toowong, located in the south-west of Brisbane, is just one of many establishments struggling to make ends meet in the current tough economic climate. Their small flat white is priced at $5.20, but owner Matthew O'Brien has had to make adjustments to their menu every three months in order to keep up with rising costs.

O'Brien shared, "It's a delicate balance of trying to provide the best quality products while keeping prices reasonable and not overcharging our customers." Phil Di Bella, owner of The Coffee Commune in Bowen Hills, also expressed the difficulties faced by cafe owners due to high energy bills, insurance costs, and the need to maintain a staff. He pointed out that payroll tax in Queensland has not been reformed in over 12 years, and there are other bureaucratic obstacles that are adding to the burden on businesses.

According to Di Bella, after all the expenses are taken into account, Queensland cafe owners are only making a profit of about $1 per cup of coffee. With an average of 300 cups sold each day, the daily net profit for coffee at his cafe is only $300. He added, "Right now, 50% of cafes are actually operating at a loss. We need to find a balance where we can make some profit, but still keep our prices affordable for our customers."

Di Bella warned that if the state government does not intervene, there could be a wave of closures among cafes in Queensland. As the state election approaches, establishments like The Coffee Commune are pleading for assistance. In response, Premier Steven Miles stated that his government has already provided support for small businesses, including a $650 electricity rebate. To stay updated on the latest breaking news, celebrity updates, and sports news, you can join our WhatsApp channel with no comments, algorithms, or privacy concerns.

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