Daily Telegraph readers slam government as NSW hospitality sector collapses

Daily Telegraph readers have voiced their anger at high government taxes and costs after new data revealed hospitality businesses across NSW are closing at record rates.

Daily Telegraph readers have reacted with fury and despair to the masthead’s recent report on the record number of restaurant and cafe closures across New South Wales, blaming rising electricity costs, government inaction and excessive red tape for driving small businesses to the brink.

The original story revealed that 814 hospitality businesses across NSW went into external administration in the past financial year — more than triple the 252 closures recorded in 2014–15 — representing a 222 per cent increase over a decade, according to Australian Securities and Investments Commission data.

Among them is Paddington’s Zafferano Trattoria Mediterranea, whose owners Simone Crivello and Isobel Galloway announced their impending closure in a viral video viewed over a million times.

The couple said they were forced to shut not due to poor service or quality, but because “Sydney has become a city where hospitality dreams can no longer survive.”

The story struck a nerve with readers, who flooded the comments section with their own stories of frustration, financial struggle and political blame.

Isobel Galloway-Crivello and her husband Simone Crivello at their restaurant, Zafferano in Paddington. They have to close their doors because the rent is killing their business. Picture: Tim Hunter.

“The graph clearly shows that the rate of closures has more than doubles since 2020/21 and that is entirely on Albo and Labor, One reader said.

“They do not care one bit about small businesses which are the base for capitalism and growing personal wealth due to their socialist ideology.”

Readers have expressed shock and sadness at the closure of Trattoria. Picture: Tim Hunter.

Another comment shared a personal story of a longstanding business shutting its doors.

“I was surprised when a friend told me yesterday that they are shutting their successful business in September, after 23 years,” A reader commented.

“They claimed electricity and gas price jumps were too much, along with increased government red tape & taxes.”

Others issued warnings of worsening conditions to come.

Readers have blamed the government for the collapse in the industry. Picture: Tim Hunter.

“What did those who voted Labor thought was going to happen, this is just the tip of the iceberg, wait until they can’t afford their spiralling power bills each month and blackouts cause mass disruption.”

Others said the burden of tax, insurance and wages had made continuing untenable.

“The restaurant businesses are bleeding due to red tape, taxes, power bills and wages costs,” another wrote. “The general public see an entree for $35 and a main for $55 … and stay away from the restaurants,” another reader said.

The response underscores a growing sentiment that for many, small business has become unsustainable.