Pubs, clubs and cafes shutting their doors after reintroduction of density limits for hospitality venues

Hospitality venues have begun closing their doors, declaring rules that “target” their industry are “ludicrous” – while thousands gather for a sport match.

The hospitality industry says it has been unfairly targeted by the latest density restrictions, which have forced many to close – yet still allow a crowd of 25,000 to attend the NYE Big Bash clash at Adelaide Oval.

Venues across Adelaide have shut their doors today in response to the reintroduction of strict capacity restrictions, which limit pubs, restaurants and cafes to just 1 person per 4 sqm indoors and 1 person per 2 sqm outdoors.

Hospitality operators have called for immediate financial grants and the reintroduction of JobKeeper to help them cope with the rule changes or risk some businesses closing forever.

Josh Rivers, who owns Remy’s Deep Dish Pizza & Bar, in the CBD, and Brighton cafe CREAM, said the tough density limits left him no choice but to close until January 4.

He will lose up to $100,000 in revenue across both businesses over the next fortnight and 20 casual workers will go without pay.

“These are usually two of our biggest weeks of the entire year,” he said.

“But it’s more viable for us to be closed. We cannot survive like this.

“We were supposed to be living with Covid with no restrictions going forward instead we’ve opened up the borders too early and small businesses have copped the brunt of it … and yet 25,000 can attend the cricket at Adelaide Oval on New Year’s Eve.

“It’s f*****g ludicrous.”

Mr Rivers warned some hospitality businesses will not survive.

Cream owner Josh Rivers with Mehdi at Remy's. Picture: Keryn Stevens

“You are about to see some businesses close for good – there’s no doubt about it. This will ruin the livelihoods of a lot of people,” he said.

Jason Makarenko has shut his Gouger St karaoke bar La Sing, indefinitely and said the “constant targeting” by Premier Steven Marshall and the Transition Committee had finally taken its toll.

“After over 700 consecutive days of restrictions this directive will now force many of us to close our doors. Many already have. We are the first to be targeted and the last to be looked after. The restrictions are ridiculous,” he said.

“But 25,000 will enjoy New Year’s Eve at Adelaide Oval while many of us are closed. Go figure.

“Our industry needs our own roadmap with ‘significant’ financial support. We are even happy to write it. But I suspect we won’t be contacted or consulted nor compensated.”

The Duke of Brunswick, on Gilbert Street, said it was “not viable” to open at 25 per cent capacity.

“We have to live to fight another day but to do so means closing our doors for now,” a post on the venue’s Facebook page said.

“Who would have thought two years on this is where we would be?

“Even with the doors closed we will be losing between $8000 and $10,000 for the week.”

The Duke of Brunswick will temporarily shut its doors. Picture: Supplied

Business SA chair Nikki Govan described the new restrictions imposed on hospitality and fitness businesses over the holiday period as “disastrous”.

“We know how important it is to protect the health and wellbeing of all South Australians. We will never question that. But the South Australian business community continues to bear the financial burden of this global pandemic,” she said.

“It is critical that support is made available immediately otherwise we will see jobs lost and more businesses closed. This is not the way we want to start 2022.”

Australian Hotels Association SA chief executive Ian Horne said venues operating at 25 per cent capacity were “bleeding money” and were in need of more than just token financial support from the government.

“There is a mixture of raw anger and utter dismay within the industry which has carried a disproportionate burden of lockdowns and restrictions over what is approaching two years,” he said.

“Financial support must be substantial and ongoing, recognising the crisis the government has created through no fault of operators and their employees.”

On Boxing Day — amid one of the hospitality industry’s busiest periods — Mr Marshall announced the state would be returning to density limits after recording another 774 positive Covid cases.

Labor called on the state government to provide urgent financial compensation for businesses being hit hard by new restrictions, particularly the hospitality, tourism and retail industries.

“Steven Marshall told us he had a plan for opening up – now we are closing down,” Opposition leader Peter Malinauskas said on Monday.

”Due to his lack of preparation, we have seen long queues at testing sites and significant delays in contact tracing.

“He must step up and provide immediate compensation so we can ensure as many businesses as possible can survive and as many jobs as possible can be saved.”

As of midnight Sunday, gyms returned to limits of one person per seven metres, while dining density has been limited to one person per four square metres indoors and one person per two square metres outdoors.

Home gatherings have been capped at 10 people, including children and babies.

In the wake of the announcement, Utopia @ Waterfall Gully said “the rollercoaster continues for struggling small business in SA”.

But management of the restaurant and event venue said “we cannot simply give up”.

“We will do everything in our power to remain open, and ensure every booking can proceed,” a post read.

“We refuse to give up, and will work our hardest not to let anyone down.”

Dale Pierce, chef and owner at Adelaide Gourmet caterer, wrote on Facebook that the restrictions would be the end for many businesses.

“Although the hospitality funeral was a couple of months ago Marshall has figured out how to exhume the body, light it on fire, run over it in a bus and thank us for being awesome before throwing us back in the ground to rot,” he wrote.

While reader Beck Bollenhagen said: “It’s sad to think 25k people can still attend matches but you can’t have many people at your local pub or restaurant. Soon there will be no jobs left and people will wonder why the Centrelink line is so long.”