Small bar owners in Adelaide CBD struggling as data confirms people having fewer big nights out

Spending in small bars and clubs is in rapid decline as data shows Gen Z is chosing to party less often. Are you drinking less? Take our poll.

Small bar owners in Adelaide’s CBD say they are currently going through a “rough period” with the cost of living crisis noticeably seeing less people out and about for a night on the town.

The latest data from the City of Adelaide shows spending at bars and clubs has been on a rapid decline since April 2023, with small bar owners struggling to keep the doors open.

Thanat Rattanakosit and his family have owned businesses in the Adelaide CBD for the past 14 years, which includes three small bars and two restaurants.

Than Rattanakosit, owner of Ru De Sian on Bank Street, says the night life economy is struggling. Picture: Tom Huntley

Mr Rattanakosit told the Advertiser that business has gone down since Covid and the rise in cost of living has crippled many businesses, with empty shop fronts noticeably growing in the CBD.

“Just as things were going back to normal in terms of where they got rid of restrictions and stuff like that, there was a period where it was good because people were allowed back out again.

“I think as soon as the cost of living and the prices of everything went up, people are kind of more conservative now with what they’re spending and how they’re choosing to spend their money.

“I feel like we definitely need a Plan B for sure, whether that’s closing or selling but quite frankly, I see a lot of business on the same path as well and it’s everyone that’s impacted across the city.”

According to the City of Adelaide, there was temporary growth in both June and February with both months having an extra day than the previous year.

February’s growth was also supported by strong attendance at the opening weekends of the Adelaide Fringe.

While there was a decline in bar spending across the nation, Adelaide reported the largest drop among all the capital cities over the past twelve months.

Last week, beloved LGBTQIA+ bar My Lover Cindi became the latest victim of SA’s hospitality crisis, forced to close due to the cost-of-living pressures.

Other nightclubs that have announced their permanent closure in recent months include Enigma Bar, Confession at Port Adelaide, Edinburgh Castle, Fat Controller, Dog and Duck and Super California.

Lord Mayor Jane Lomax-Smith said the city needed to adapt to changing consumer behaviour before it was too late. Picture: Morgan Sette

Speaking at Adelaide Town Hall on Thursday, Lord Mayor Jane Lomax-Smith said cost of living pressures combined with changes in consumer behaviour were the driving causes behind the decline.

“Whilst there are the costs, pressures to the venues and the challenges there, the customer has changed and that’s one of the most challenging areas,” she said.

“Because young people are of course stressed by the cost of living pressures, but on top of that they’re drinking less, they’re going out later.”

While an immediate solution is unclear, Ms Lomax-Smith said change was needed before it was too late.