May 19th 2024.
A business group in New South Wales is advocating for the return of dining vouchers to assist struggling cafes and restaurants during these times of rising living costs. According to Paul Nicolaou, the executive director of Business Sydney, many small to medium-sized businesses are feeling the financial strain due to lower levels of discretionary spending and increasing operational costs. In light of this, the group is urging for a program similar to the Dine and Discover scheme, which was implemented during the COVID-19 pandemic, to be included in the upcoming NSW state budget in June.
Nicolaou explained in an interview with 9News that businesses in Sydney and Parramatta are particularly affected as people are being more cautious with their spending, and with the rise in unemployment, there are fewer customers able to dine out as they used to. He also noted that the current situation is even more challenging than during the pandemic. This call for support comes at a time when the hospitality sector is facing tough conditions, as revealed in a recent Business NSW survey.
The survey showed that 35% of hospitality businesses in NSW are considering closing down, which is almost double the figure for businesses in general, at 18%. Additionally, nearly half of the surveyed hospitality businesses had to reduce staff hours or lay off employees, while 61% are experiencing disruptions in cash flow. Moreover, 80% reported a decline in customer visits and 77% have noticed lower spending from customers. The impact of these challenges is evident with the recent closure of hatted restaurant Redbird and its sister eatery Tequila Daisy, and the announcement of the 35-year-old Japanese restaurant Tetsuya's impending closure in July.
Sadly, there have been more closures this month, including Secolo Balmain, Lima Bar in Bondi, and Silks at Crown Sydney. The hospitality sector is facing a tough road ahead and needs better support to survive. With the reinstatement of dining vouchers, businesses can get a much-needed boost, and patrons can enjoy dining out at their favourite restaurants once again. As the government works towards bringing stranded Australians home, it is also crucial that they consider the struggling hospitality industry and provide the necessary support in the upcoming state budget.
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