Hugos Manly: Owner Dave Evans reveals the true cost of coronavirus
The owner of one of Sydney’s most popular restaurants has warned there will be many casualties in the hospitality industry because of the COVID-19 crisis, as he revealed the financial impact it’s having on his business.
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The owner of one of Sydney’s best-known restaurants has revealed the COVID-19 crisis is costing the business hundreds of thousands of dollars in lost earnings.
Dave Evans, of Hugos Manly, said they normally see up to 1000 customers a day at the wharf side restaurant at this time of the year.
Instead, the doors have been shut since March 23.
“If this continues for months it will affect our cash flow by hundreds and hundreds of thousands of dollars,” he said.
Mr Evans said he has let go of 80 casual employees, while 70 of his long term staff are on JobKeeper.
As well as having no customers, the business has paid out more than $200,000 on JobKeeper so far, which the government has promised to pay back this month.
“JobKeeper and all our other commitments has put a substantial strain on our finances due to the unprecedented closure,” Mr Evans said.
“But we are luckier than most.
“At least we have the money to pay staff until then and I trust the government will pay us back.”
He said the government’s support of workers and its promise to boost the economy has given him the confidence to go ahead with a planned kitchen upgrade, planned for July but which will now start next week.
“We’ve signed a 25 year lease last year so we have made a commitment to this business,” Mr Evans said.
“I’ve made a calculated decision to invest now.
“Everyone is in uncharted waters.
“But we have strong support from locals so I think we will come through this.
“Other restaurants who rely on tourists may find it harder.”
Other businesses in Manly, normally a thriving tourist hotspot, are already struggling, with a number of For Lease signs going up in the windows of small restaurants and cafes around the precinct.
A number of openings including that of Fratelli Fresh, the fourth Rockpool venture for Manly, have been postponed.
Mr Evans said he expected that even when restaurants are allowed to open they will have to operate under social distancing rules.
He said because he can seat more than 200 people, he can still get a substantial number through the door.
But he said smaller restaurants will struggle to make a profit if they have to reduce customer numbers and it will also hit the huge chains who have multiple restaurants to manage through this crisis.
“There are going to be casualties,” he said.
While, Mr Evans is confident Hugos will pull through he said he won’t be taking any leave for the next 12 months as he attempts to steer the business through the crisis.
“When times are tough I need to be here,” he said.