‘Daylight Robbery’: crippling energy bills force cafe to hike prices

With Treasurer Jim Chalmers claiming the cost of living crisis is on the improve, a Sydney small business says it has never been harder to make a living.

As Jim Chalmers claims the cost of living crisis is showing signs of improvement, a long-time small business has been forced to jack up its prices.

“I’m very confident this is the hardest I’ve experienced in the last 15 years. If I don’t put my prices up now, I’m stuffed” said George Pahali, the owner of Aussie Bites Cafe on Victoria Road at Gladesville.

Energy. Food. Coffee. Wages. Insurance. You name it, he’s paying through the nose.

“Two years ago when I used to get a quarterly (energy) bill for $900 I would think it was a lot. My bill is now $1,600. It’s like daylight robbery. It’s ridiculous. It’s almost doubled. But my sales haven’t doubled.” he said.

Mr Pahali’s cafe is 10 square metres. He has two fridges, a freezer, a toaster, a microwave and his coffee machine.

Aussie Bites Cafe owner George Pahali says his energy bill doubled from $900 to $1,700. Picture: Sam Ruttyn

By his own estimations, he needs to sell about 15 small coffees a day just to cover the energy bill.

He said items including milk, groceries, meat and packaging have all increased in recent years at least 15%. If not for a relationship with a local roaster, the cost of coffee beans would have through the roof.

On Wednesday, while reporting that annual inflation had dropped to its lowest in four years, Treasurer Jim Chalmers said the government was making “welcome and encouraging progress”... while acknowledging Australians were “still doing it tough”.

George isn’t complaining: “I’m OK with eating glass for a long period of time. I’ve got a family to feed.”

He has given the community a heads up that his prices are about to increase and the feedback has been “OK.”

A recent report by CreditorWatch revealed “the outlook for businesses in the hospitality industry has worsened”, with almost 10% at risk of closure over the next year.

Mr Pahali said current economic conditions are the hardest he has experienced in the past 15 years. Picture: Sam Ruttyn

“The cost of living has really affected the number of people that walk through my shop. I’ve thought about it. But it’s a matter of… either I put it up and I stay open, or I don’t put it up and I’m shutting shop. I don’t want to. I don’t want to upset people. (But) if I don’t do this I have to let go of more people” Mr Pahali said.

“I’ll be honest with you - I haven’t paid myself in the last two weeks. I just can’t. My staff come first.”

Originally published as ‘Daylight Robbery’: crippling energy bills force cafe to hike prices