Hospitality operators say it’ll take two years to recoup coronavirus losses

Cafe owners reveal they’ll be losing money for at least two years as they fight their way back from the coronavirus recession, with many not pulling wages for themselves and fighting to keep the doors open.

STRUGGLING Brisbane cafes estimate it will be two years before they start making money again, as coronavirus decimates the hospitality industry.

Katie McMullen of all-day dining venue Neesh Bar in East Brisbane said she was battling to get her eatery back on track after experiencing an 80 per cent drop in trade since COVID-19 restrictions kicked in.

“I feel like people just forgot that I exist so that’s really hard,” she said of the business she owns with husband and chef Dale. “We’ll be just keeping it afloat for the next two years.”

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Mrs McMullen said the couple wasn’t pulling a wage from the business and was fighting every day to keep the doors open.

“You just can’t sustain the rent, the costs, the overheads without the customers being there,” she said.

Neesh Bar owner Katie McMullen pictured at her cafe in Woolloongabba. Picture: Josh Woning

Owners of neighbouring Korean fried chicken eatery KCS Chicken Jamie Yang and Sara Jeon said they had switched to a takeaway model to try to stay afloat, but the past few months had been “very hard”.

“Our goal is just to survive until next year and then once this COVID ends we can get back on track,” said Mr Yang.

The couple said they were just trying to make enough money to pay bills and had not been able to take a salary.

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Such financial pressures have been causing severe strains on mental health among hospitality operators, with record numbers reaching out for psychological support.

“I had some very, very dark days,” Mrs McMullen said. “I was struggling mentally every day. I felt a lot of pressure because we sold our house and did this project and we have small children and it was a dream and it still is, but it’s really hard.”

Restaurant and Catering Australia chief Wes Lambert said members were reporting feeling “despondent and hopeless” as they struggled with the effects of lockdowns and ongoing dining restrictions.

“We’ve certainly had many more requests for mental health resources for Beyond Blue and The White Jacket Effect,” he said, with operators also worried about a second wave causing more restrictions.

Originally published as Hospitality operators say it’ll take two years to recoup coronavirus losses