The owner of a once-popular restaurant in melbourne says that business is so bad across the industry that he is considering throwing in the towel for good.
“I’m deciding in the next 48 hours if I liquidate,” the restaurateur, James*, who wished to remain anonymous so as not to impede the possible sale of his business, told news.com.au.
“I’m going to try and sell the business to make as much as I can, to pay as many people as I can.
“I’ve not taken a wage for two years. I’ve had to pump money into the business.”
It’s not an issue unique to James. Across Australia, hospitality venues are struggling and dozens have gone under in the past year.
Only one industry is in more dire straits than hospitality, and that’s the construction sector, according to numbers released from the corporate regulator, ASIC.
“We are talking 30 to 50 per cent down in an industry with margins of two to five per cent,” the hospitality insider added.
“I know restaurant groups that are down 30 per cent (in revenue) across their company, it’s not survivable in this industry.
“There’s places that are empty and are down 60 per cent revenue.”
James is in the process of trying to sell his business. He said before Covid he would…
