Beloved pubs drowning in debt as the taps run dry
Devastated pub owners have warned Victorians could lose their favourite watering holes if Daniel Andrews doesn’t act now and let our pubs get back to serving customers, with many saying they are completely capable of reopening up safely.
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Pub owners fear some of Melbourne’s favourite watering holes will be forced to close down before Christmas due to the industry drowning in half a billion dollars of lockdown debt.
As hoteliers plead for a reopening of their businesses this weekend, the Herald Sun can reveal that smaller venues are being hit with average weekly costs of $10,000 a week – leaving some with bills of about $250,000 since restrictions were enforced.
An Australian Hotels Association survey of its member found that larger pubs were being battered with costs of $25,000 a week.
Premier Daniel Andrews and his Crisis Council of Cabinet are mulling changes to tough restrictions that will be announced this Sunday, with a chance some limited outdoor dining will return to service at pubs.
The industry says it is well-prepared to bring decent numbers through their doors, due to new digital tracing technology already operating in regional areas. Every venue would have to have QR codes for patrons to scan via phones when they arrive, or sign them in manually.
AHA Victorian president David Canny, who runs the Red Lion in Ballarat, said pubs wanted to welcome punters to “safely celebrate” the Grand Final, Christmas and the New Year.
If there isn’t a realistic reopening of the industry, Mr Canny said it “will see the demise of a number of local pubs”.
“We still have to pay rates, power, building security, insurance, land tax, corporate tax and the fixed overheads each day of the week, with many operators continuing to pay staff who are not entitled to government assistance such as chefs on visas,” he said.
“52,000 Victorians won’t have a job to wake up to if we don’t act now and get our pubs out of this situation.”
The AHA survey found the state’s 1450 venues had already lost an average of 12 staff each who were seeking a fresh start, while some owners were providing their family homes as further security and “see no clear way out”.
Mark O’Reilly, who runs a number of pubs including Bridie O’Reilly in South Yarra and the Glenferrie Hotel in Hawthorn, said the sector was already adept at managing strict standards – such as service of alcohol and health regulations — so could reopen safely.
“I hope there’s not, but if there’s an outbreak they (health authorities) can ask who were your patrons and we can say here you go, this is everyone, and what time they came in,” he said.
Rob Pitt, whose family has had the Hotel Sorrento for more than 40 years, said it was difficult to tell how many venues would survive the COVID-19 shutdowns.
“It depends when the banks start putting the pressure on the landlords — we won’t see the full impact until this time next year,” he said.
Mr Pitt said the government needed to reveal how restrictions would start to ease.
“Not knowing the road rules, it’s very hard to prepare yourself as there’s a lot to do in a short space of time,” he said.
“The (other) issue is, when we do re-open, are people going to be gun shy?” he said.
Entertainment such as live music will struggle to be viable if pubs are operating at just 20 per cent capacity, he said.
Bob Kane, who has been at Richmond’s All Nations hotel for five years, estimates he has lost “a couple of hundred thousand” this year and said he expected most to pubs to re-open.
“Everyone’s being understanding now but in three months time after everyone’s been open, they’re going to be faced with debts they can’t meet and that’s when a lot of people will be throwing the keys in,” he said.
The All Nations is normally licenced to hold 250 punters but when it reopens it will be a fraction of its normal capacity with 50 in the beer garden and two rooms of ten patrons each.
“Making up the lost ground will be really hard,” he said.
“We’re well placed to re-open safely. We know what we’ve got to do. We’re better placed for the experience of last time. We’ve just got to be allowed to open the doors to show it.”
General manager of the Grand Hotel in Warrandyte, Peter Appleby, said the flow-on effects of longer shutdowns were devastating, with concerns about how to pay for sponsorship of local sports clubs.
Mr Appledby said 40 staff who were “climbing the walls” on JobKeeper had been specially trained during down time and the pub had QR codes and digital tracing ready to roll.
“We are ready to open, we are COVID safe, please let us open,” he said.
CITY COUNCIL PUSHES FOR OUTDOOR DINING IN CBD
Hundreds of hospitality venues have been approved for special outdoor dining permits from the City of Melbourne.
Cafes, restaurants and bars will be able to trade on footpaths and in some cases on roads and lanes as pandemic restrictions are eased.
As of Wednesday evening, 467 out of 690 permit applications had been approved, with nearly half from businesses that had never before sought an alfresco dining permit.
More than 200 venues have also applied for $1.9m in grants to cover the costs of outdoor furniture and other equipment from a $100m capital city recovery fund negotiated between the council and the state government.
Lord Mayor Sally Capp said every restaurant, cafe and bar that submitted a compliant application for an outdoor dining permit would receive speedy approval.
“I will do everything I can to assist businesses to re-open as soon as possible, as safely as possible,” she said.
“I want to see businesses reopening, people coming back to the city, cash registers ringing and our city pumping again.”
Piccolina Gelateria owner Sandra Foti will open two new outlets in Degraves Street and Hardware Lane.
“It’s tough right now, but I’m looking at the long game,” she said.
“I think people are really excited about the idea of being able to get out and about again, and they’ll come back sooner than we think.”
Ms Capp again called on the government to endorse the council’s 10-point plan to allow indoor dining to resume safely, and for the city to reopen soon.
“I believe the trigger for reopening should be when metropolitan Melbourne meets the hotspot definition of three days of up to 10 cases of community transmission, which was recommended by the Chief Medical Officer and endorsed by National Cabinet,” she said.
The council has 32 officers working on assessment and approval work for grants and permits.
ABS FIGURES REVEAL LOCKDOWN IMPACT ON UNEMPLOYMENT