Adelaide CBD small businesses smashed by work-from-home trend

Once-thriving CBD small businesses are being smashed by the work-from-home revolution as leaders warn of the pandemic’s devastating emotional impact.

The work-from-home revolution is crushing CBD small businesses and fuelling anxiety among their owners about an uncertain financial future for them and their staff.

In more than four decades at a Grenfell St shoe repairer, Massimo Sassi says this has been the toughest year of his life.

His father bought Classic Shoe Repairs in 1974 and Massimo took ownership in the late 1980s.

The pandemic revolution of city professionals working from home, even a few days a week, means their office shoes are preserved and, therefore, the shoe repair business has slumped.

Just as workers were starting to return to the city, the three-day hard lockdown banished them to the suburbs again.

Massimo says the financial and emotional drain is far more devastating than when computers replaced floors of bookkeepers, or after the 1991 State Bank financial disaster ravaged the South Australian economy.

“This is the worst. I have not seen this. I think we’re coming to a cliff. I’ve been buoyed, or helped, by JobKeeper and the State Government grant, which I’m applying for again, just to give me the confidence to stay there and to boost my mental health,” the 62-year-old said.

“That’s been a big issue for me and it has reflected on my personal life at times, because I do worry about my income, my mortgage and food on the table.”

Classic Shoe Repairs proprietor Massimo Sassi, wife Carmel and son Stefano in their store in Grenfell Street. Picture: Naomi Jellicoe

The western suburbs resident rides 10km a day into work, four days a week, to boost his fitness and help relieve stress.

“Exercise has been the best thing for me. I think it releases a hell of a lot of stress and I can’t emphasise that enough” he says.

Massimo, who runs the business with wife Carmel and son Stefano, 27, is starting a mediation process on Monday in a bid to resolve a dispute with his landlord.

“Landlords don’t want to talk to us. They still haven’t spoken to us about giving us a bit of confidence for the remainder of our lease or they’re waiting for the COVID code of conduct to finish,” he said.

“That’s the cliff rush. I can tell you right now, if and when the JobKeeper finishes at the current rate of rent I wouldn’t last three to six months. I’ll be done over, not just financially but mentally also.”

Little more than 100m to the south, Exchange Plc’s Pranzo restaurant – a favourite of political and business powerbrokers – has had income and turnover plunge by 70 per cent.

Anna Camerlengo, co-owner of Pranzo restaurant, Exchange Place, Adelaide.

Co-owner Anna Camerlengo says business had been steadily returning before the hard lockdown, which set back trade and resulted in some food loss.

This had been minimised by an organised head chef preparing as he goes and workers taking home a significant amount.

Anna says the landlord has been great but the pandemic has been tough for her, her business partner and staff.

“We are struggling with our own mental issues, trying to find a penny to pay for things here and there. We both have had to look for other jobs elsewhere in order to just keep going at home with our own personal bills and such, not just the business,” she said.

Tired firms suffer in silence

Exhausted small business owners are soldiering on through a turbulent year and suffering anxiety in silence, says Business SA chief Martin Haese.

This hidden side of the pandemic was likely worse than indicated by statistics, although a Business SA September survey found 33 per cent of respondents said they were impacted by mental health issues.

“I speak to a lot of business owners every day. The commonality is they’re just exhausted,” Mr Haese said.

“Some are exhausted because of financial stress as a result of 2020. Some are also just physically exhausted, because of being so busy.

“There are many, many business owners that have not taken a break, because they’ve been in survival mode.”

Mr Haese, a former Lord Mayor, said employers overwhelmingly had been mindful of their employees’ mental health, often at the expense of their own.

“I think that’s feeding into exhaustion – it’s all interrelated between mental exhaustion, physical exhaustion, anxiety and, in extreme cases, depression,” he said

Small Business Commissioner John Chapman said his office had been inundated with disputes between landlords and commercial tenants unable to pay rent.

Emergency COVID-19 provisions allow for them to mediate through Mr Chapman, whose office has resolved 143 of 297 cases, with only 28 either unable to be resolved or one party unable to be contacted. Of 1553 inquiries, about 1000 related to retail or commercial leases.

Treasurer Rob Lucas said the dispute resolution had been successful but regulations would not be extended past January 3, although he stressed disputes lodged before then still could be dealt with by Mr Chapman.

Asked about the pandemic’s emotional impact, Mr Lucas said: “I don’t think there’s any doubt there’s been very significant mental health issues for all sectors, including small business. But it’s also the employees, people who have lost their jobs and are struggling and worrying if they will lose their jobs.”

Australian Medical Association state president Dr Chris Moy said people, including small business owners, had shown resilience and a can-do attitude they might not have known they had.

“For many people in this situation who have been employers, it sometimes has been overwhelming because they feel like they’ve failed and the weight of responsibility,” Dr Moy said.

“Sometimes seeing your GP may be quite worthwhile to get treatment. A lot of it may be just reframing it so that they understand that, in fact, this has been a test that most of them have actually done incredibly well in getting through.

“They’ve really shown resilience and can-do flexibility which they may not have known. They need somebody to tell them that sometimes.”

Join a live forum at 2pm, Wednesday December 2 with Business SA chair Nikki Govan and Australian Medical Association state president Dr Chris Moy.