How Adelaide’s small bars have created mini jobs boom, official review finds

ADELAIDE’S 51 small bars employ more than 400 people and have created $49.3 million in economic activity, an official report reveals.

Small Bars - Pink Moon Saloon

ADELAIDE’S 51 small bars employ more than 400 people and have created $49.3 million in economic activity, an official report reveals.

An economic study was commissioned by Renewal SA to highlight what impact licensing changes have left on the city.

For the 46 businesses that took part in a Hudson Howells survey, total employment was estimated to be 433 jobs that were mostly part-time or casual – or the equivalent of 197 fulltime jobs.

The study, published today, reported that about half of business owners planned to employ at least one to five extra people in the next year.

The study noted business confidence in the small venues’ sector was “more optimistic” than other non-mining sectors. More than half of the businesses surveyed said they planned to undertake building upgrades worth more than $40,000 in the next year. Most of their cash will be spent on other SA businesses.

Deputy Premier John Rau said the small bar liquor licence had helped bring people back to Adelaide’s quiet streets and laneways.

The State Government created a new class of liquor license in April 2013, which made it easier to approve new CBD venues that closed at 2am and had a maximum capacity of 120 patrons.

Mr Rau said that one in five small venues had an owner aged under 30, which showed the licensing changes were providing young people with the confidence to start their business ventures in Adelaide.

“The small-venue movement has brought about unprecedented change to the city and has been embraced by the public and local businesses,” he said. Of the businesses able to estimate their annual sales revenue, one-third had sales of at least $700,000 while a further quarter reported sales of more than $400,000.

Clever Little Tailor on Peel St was a test case for the small- bar licence and now the team behind it – Josh Baker, Crispian Fielke, Dana Whyte and Marshall King – have just opened one of the newest small bars, Pink Moon Saloon on Leigh St, along with chef Matthew Standen.

“We always thought we’d open another. There are lots of others (bars and eateries) that have popped up but we were confident about what we do, that it’s good, and that there was room for another,” Mr King said.

“The small-bar licence has definitely given people an opportunity that wasn’t there before.”