Restaurants might not be ‘viable’ if patron cap stays
Melbourne restaurateurs have welcomed the first steps to reopening, but many say the cap on the number of patrons was too low to be viable.
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Melbourne restaurateurs are calling for a return to at least 50 per cent trading capacity by December as the industry gears up to take its first steps out of lockdown.
An exclusive Herald Sun survey of more than 120 venues throughout Melbourne found more than three quarters were planning on reopening on November 2 under the currently proposed maximum patron levels of 20 people inside – with a maximum of 10 per indoor space – and up to 50 outdoors.
Most operators said these restricted numbers were too low to be viable but they welcomed the first steps to reopening.
It was also crucial the industry was able to return to increased numbers of indoor dining, operating at a minimum of 50 per cent capacity as COVID-case numbers remained on par with other states.
Greg Sanderson of Speakeasy Group – which operates acclaimed CBD bars Eau-de-Vie, Boilermaker House and Nick and Nora’s that opened three days before the second lockdown – said the group needed increased indoor capacity as soon as practical.
“At a bare minimum, we need to be at 50 per cent capacity indoors for financial viability and even then, we would still require government assistance in the form of continuing the Code of Conduct and JobKeeper,” he said. “The current capacities are not a profitable model for anyone and our key motivator to open under them is to get as many of our staff back to work as we can, as soon as we can.”
Stokehouse owner Frank van Haandel said with indoor numbers so low, the first few weeks’ trading of the St Kilda restaurant would add to already incurred losses, but reopening was for his “staff’s wellbeing”. “It’s not about profits, it’s about jobs and survival,” he said. “The industry is losing a lot of talented staff to interstate stating that they see no future for them in Victoria. How sad is that?”
Osvaldo Tongella from Oster in Richmond said as a single-room venue, 10 patrons inside and 12 outside was not enough to make the business viable, but that they were excited to welcome back diners.
“We cannot change what has been done … this is our vocation and we will do anything in our power to rebuild for a brighter future of our young restaurant,” he said.
Andy Mullins from Sand Hill Road said the pub group would keep more than half its venues, including Garden State Hotel in the CBD and the Richmond Club Hotel, closed on November 2 under current guidelines. “It would cost us more to open with these limits than to stay closed. But we’re desperately keen to get our staff back to work as soon as we can,” he said.
“We must be allowed to trade under the same conditions as venues in other states.”
While operators with existing outdoor spaces welcomed the extra trading capacity, those without infrastructure said creating outdoor dining spaces remained unfeasible, with council requirements still too onerous.
Nathan Toleman from The Mulberry Group said he had applied for outdoor dining for his Flinders Lane restaurant and bar Hazel and Dessous, but found red tape was problematic.
“There are so many hoops to jump through. We are told our application will take 30 days to process and we have no guarantee if City of Melbourne will allow us to close down Flinders Lane,” he said.
Restaurateur Chris Lucas said he hoped the government would go further this weekend on density requirements and patron caps.
“We’re really hopeful there will be added some flexibility to the requirements, for instance in how rooms can be partitioned,” he said.
Most operators said they were looking forward to welcoming people back. “We just can’t wait to be open again,” Fitzroy Town Hall Hotel publican Sean Donovan said.