Melbourne CBD hospitality venues say Covid is having a big impact on trade

Some of the city’s top restaurants and bars say trading conditions are still extremely challenging, despite the easing of Covid rules.

Trading conditions are tough at Melbourne restaurants, such as Grossi Florentino (pictured). Picture: Ian Currie

Inner city food and drink venues are still reporting tough trading conditions, despite the easing of pandemic restrictions in recent months.

In submissions to Melbourne City Council, establishments like Grossi Florentino, Tsindos, Bottega and Hotel Windsor said there was still a lack of customers at certain parts of the day.

CBD restaurant owner Frank Stella said he had been running businesses for 25 years, but the drop in people had made it very challenging.

“Gross turnover is down around 50 per cent, which makes it very difficult to employ staff,” he said.

“I am personally working seven days a week taking a minimal wage.”

Liz Rodgriguez, from the Grossi group including Grossi Florentino, said that on face value outdoor dining during summer seemed well-attended.

CBD hospitality businesses have reported a drop in customers. Picture: Alex Coppel

“What is important to remember is how much business are still struggling over all,” she said.

“The mass drop in population and skilled labour in CBD in particular, is forcing venues to restrict bookings and partly close venues either entirely or for certain days.”

Joanne Gamvros, from Bar Lourinha, said the Lt Collins st business had traded at a loss in January, February and March.

“The impacts of COVID-19 customer cancellations, staff restrictions and low confidence with dining at restaurants, particularly in Melbourne, has proved a 30 per reduction in sales.”

The businesses were lobbying the council to continue to waive outdoor dining permit fees amid ongoing effects of pandemic shutdowns.

Councillors agreed to extend the waiver, which was due to end in April, to October 31.

Windsor Hotel chief operating Ajit Rao said he did not expect to see pre-Covid traveller numbers returning before mid-2024.

“For the food and beverage we are very heavily dependant on Covid numbers in control, so that patrons feel secure to be in a restaurant environment,” he said.

Bottega restaurant’s Denis Lucey said “we need to encourage more foot traffic into the CBD and assist small business operators who have personally injected more funding to

keep their businesses afloat”.

Tsindos Greek Restaurant owner Harry Tsindos said the closure of a city laneway and the council’s Melbourne Money scheme had helped a lot.

“I have invested heavily in making the best of what opportunities I was given, and will never give up on our beautiful, diverse city,” he said.

Others to make submissions including the Australian Hotels Association, which said the “long journey out of Covid-19 presents considerable and varied ongoing challenges for licensed venue operators.”