‘Done everything’: Battling cafe’s last-ditch effort
Owners of a struggling Melbourne cafe have issued an unlikely request to their loyal customers in a last-ditch attempt to help their business survive.
Restaurants & Bars
Don't miss out on the headlines from Restaurants & Bars. Followed categories will be added to My News.
Owners of a Melbourne cafe have called for public donations in what they describe as a “humiliating” last-ditch attempt to keep their doors open after struggling with no government support during the pandemic.
Samantha Hitt and Beth Hancock, owners of Milk and Wine Co., in Heathmont in Melbourne’s east, have released a GoFundMe asking the public to donate $100,000 – a lifeline they need to help survive past the end of the year.
“We just can’t continue like this,” Ms Hitt told news.com.au
“It’s been a bit embarrassing that we’ve had to do it, but equally, we don’t want to lose the cafe.”
The pair opened the cafe in March 2020, on the first day of Melbourne lockdowns, and were restricted to serving takeaway only.
Considered a ‘new business’, Ms Hitt said they were unable to receive any Covid-19 government assistance offered to other businesses at the time.
“Barely able to make ends meet,” they entered a small business payment plan with the Australian Taxation Office, which accrued interest over time. Staff wages and increases in supplier costs amid the cost of living crisis has only added to the financial strain.
“It’s basically all-consuming,” Ms Hitt said of the debt. “You’ve got this sort of dark cloud just constantly hanging over your head.”
“The stress and anxiety that our families have spent the last four years living with is something I would never wish upon people.”
The pair said they have tried everything to try to chip away at debt, including selling cars, spending time away from family to work 60 hours a week and taking little to no wage.
“My husband and I sold our house two years ago and put money that we made off the house into the business … We’ve exhausted all our other avenues.”
They have also slightly increased the cost of food and drink but are hestitant to raise it further considering many are feeling the pinch amid the cost of living.
Despite the stress, the pair continue to offer 50 per cent discounts to essential services workers and run a ‘pay it forward’ program, where customers can buy a meal for others in the community and have it delivered.
“We’ve remained firm on the fact that if we can’t do things like our essential service discount, and we can’t get our pay it forward meals out, then we’d rather not have a business because it’s who we are.”
On Sunday, they launched their GoFundMe page, which has raised almost $28,000 and led to an outpouring of support from the local community.
“We’ve been absolutely blown away by people’s generosity,” she said.
“We’ve had people come in and say but I’m going to make sure I come in more (to get a coffee). It’s not just about the donations, it’s also about people coming in and just giving us a hug.”
However, not everyone has been supportive, with Ms Hitt and Ms Hancock copping criticism by some people online who claim asking for donations is “a bit rich” amid the cost of living crisis.
Ms Hitt said the criticism has been “really hard to swallow”, but she stressed they’re “not forcing anyone to do anything.”
“We’re simply putting it out there and doing what we think is best for us,” she continued.
“I know that if we there was a business on the strip of shops that we are in (who were calling for support), we would be 100 per cent behind it because everyone is feeling it.”
It comes after a popular cafe in Sydney’s inner west closed it doors earlier this year.
Alex Elliot-Howery, who owns the Cornersmith cafe in Annandale with her husband, James Grant, told The Sydney Morning Herald the business was shutting because the venue “is simply not profitable”.
“I think hospitality is a bit broken,” she said.
Ms Elliot-Howery told the publication the business had been in “survival mode” since Covid.
“Every week it has felt harder and harder to make the right decisions, to keep our customers happy, stay creative and have the environmental focus that has always been fundamental for us.”
Ms Hitt said the federal government needs to be doing more to financially support those in hospitality and retail.
“Those two sectors are absolutely struggling.”
“Small business gets keeps getting hit and hit and hit. And at some point, I’d like to think that there’d be more consideration for small businesses like ours.”
Originally published as ‘Done everything’: Battling cafe’s last-ditch effort