In order to help cafes and restaurants who are having trouble keeping up with the rising cost of living, a business group in New South Wales is advocating for the return of dining vouchers.
Paul Nicolaou, executive director of Business Sydney, stated that a lot of small and medium-sized companies “are feeling the pinch” as a result of things like lower discretionary spending and increased operating expenses.
Ahead of the June NSW state budget, the advocacy group has advocated for a program modeled to the state’s Dine and Discover program, which was implemented during the COVID-19 pandemic.
“A lot of businesses across Sydney and in Parramatta are struggling because of the fact that a lot of people are holding off from spending money,” Nicolaou stated.
“There is also an increase in unemployment, which means that many people won’t be able to go out to restaurants and cafés as they used to. “It’s tougher now than it was during COVID-19.”
The hotel industry is facing more challenging times, as highlighted in Business NSW’s Business Conditions Survey earlier this year.
As a result, there is a request for increased support.
According to the survey, 35% of NSW businesses in the hospitality sector are thinking about closing, which is almost twice as many as the general company rate of 18%.
Sixty-one percent of hospitality organizations are experiencing disruptions in their cash flow, and nearly half of them have had to cut staff hours or employee headcount.
Seventy-seven percent reported fewer customers spending money, and more than 80 percent reported a drop in customer visits.
The popular restaurant Redbird and its sibling establishment Tequila Daisy will close this week, and Tetsuya’s, a 35-year-old Japanese cafe, has announced it would close in July.
Secolo Balmain, Bondi’s Lima Bar, and Silks at Crown Sydney have already shuttered this month.
