Justin Hemmes: Lockout laws have reduced Ivy’s revenue by 53%

Billionaire bar tsar Justin Hemmes claims the lock out laws have reduced late night revenue takings at his flagship venue the Ivy by 53 per cent over five years.

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Billionaire bar tsar Justin Hemmes claims the lock out laws have reduced late night revenue takings at his flagship venue the Ivy by 53 per cent.

The Merivale chief executive has lodged a submission to the Sydney night-life parliamentary inquiry, which claims payments tendered after 1am at the Ivy dropped from about $12 million in FY14 to just $5.6 million in FY19.

“FY19 revenue is 47 per cent of FY14 revenue, which represents a 53 per cent decline,” the submission said.

“Ivy … includes over 20,000 sqm of food and beverage spaces, welcomes over 2,000,000 customers per annum and is located in the heart of Sydney’s CBD.”

Justin Hemmes is launching a campaign to lift lockout laws. Pictured at his club Level 6, at the Ivy in Sydney. Picture: Jonathan Ng

Mr Hemmes, who is worth about $1.05 billion, controls the Merivale empire, which owns 89 restaurants, bars and event spaces in Sydney and employs more than 3000 people.

The billionaire will appear before the government inquiry this Friday, where he will put his case forward for reducing the lock out law restrictions, which prevent people from entering venues after 1:30am. His submission claims hospitality work is highly sought after by students who study during the day or need a second job, but with declining foot traffic in the CBD due to the lock outs these jobs are now dwindling.

“With customer levels quickly deteriorating to an all-time low from 8pm, venues are closed and employment shifts are therefore reduced,” the submission said.

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“These are people who need the funds to purchase homes, to raise their families, varying child care needs, to save and to travel — who are all contributing to our economy, yet their employment opportunities are vastly curtailed as a result of the lock out laws and alcohol restrictions.”

The Merivale submission also contains a list of famous people who have been refused entry to Mr Hemmes’ venues due to the lock out laws, including band Smashing Pumpkins, singer Madonna, NBA player James Harden, retired soccer player Steven Gerrard, and the Chelsea soccer team.

“Let’s open up Sydney’s CBD night time economy for trade. Let’s put this wonderful city back on the tourism map and lets build a 24 hour city that we can all be proud of,” the submission said.

“With the imminent opening of the multi-billion dollar light rail system and the pedestrianisation of George Street, now is the time to return Sydney to a vibrant world class city.”