Hospitality operator Josh Rivers, of CREAM and Diamond Burger at Jetty Rd, Brighton, says current crisis is worse than Covid-19

A hospitality business owner says the Covid-19 pandemic was a ‘dream’ compared to the current crisis facing the industry – and there’s years of pain still to come.

• Groundbreaking Adelaide restaurant closes

An Adelaide hospitality operator says the Covid-19 pandemic was a “dream” compared to the current crisis facing the industry – and predicted a decade of pain is still to come.

As more venues close each week in the face of skyrocketing costs and reduced consumer spending, cafe and restaurant owner Josh Rivers said now was the “worst period for Australian hospitality in its history”.

“Covid was a dream compared to this. I’d take Covid tomorrow over this,” said Mr Rivers, who owns CREAM on Jetty Road, Brighton.

“We were busy, we had line-ups every day. People felt like they were getting out of the house… there was a lot of expendable income, you couldn’t go for a holiday.

Owner Josh Rivers at Diamond Burger bar in Glenunga. Picture: Tom Huntley

“Now there’s a lot of hospitality people trying to think positive, saying it’ll be okay… but don’t do that. You can’t bury your head in the sand.

“You need to be a realist and realise this current economic situation is going to be with us for the next five to ten years.”

Mr Rivers – who earlier this week announced he was closing his Jetty Road doughnut shop, Landough’s – has urged fellow small business operators to “shrink” their offerings if they want to survive in the present economic climate.

“You have to be savvy. If you want to survive, sometimes you have to cut an arm off to save the body,” he said.

Earlier this year, Mr Rivers changed his business model and moved his successful Diamond Burger shop into CREAM on Jetty Rd, to cut down on costs.

In a fortnight, he’s also planning to open a new bagel and oat bar, Girl Next Door, in the same space, making it three projects under the one roof.

“It’s about consolidation. Diamond Burger was doing fine but I had to pay separate rent, separate eftpos fees, separate insurance, separate labour costs,” he said.

“It’s about maximising your potential revenue and profit.”

Mr Rivers said specialist small hospitality and retail businesses were at the greatest risk of closing their doors because of the rising cost-of-living.

Josh and Chimere Rivers are parents to young son Lando. Supplied

Josh Rivers and partner Chimere and their son Landough’s in Brighton. Supplied

“No one has got money, so who’s spending money on a candle or a photo frame or a doughnut? No one’s got expendable income,” said Mr Rivers, who also owns Remy’s Deep Dish Pizza and Bar in the city.

“There’s not enough customers to make a profit. You need to have another offering, you can’t just survive off one product.”

A host of venues have shut for good in recent months, including Four Sides Bar & Kitchen in Hyde Park this week. Their owners said many operators were “doing it tough” and urged people to support their local business in a post on social media.

“The reality is, hospitality is on its knees,” they wrote.

“Running a venue in this climate has never been tougher, and so many incredible local businesses are doing it tough.

“If there’s one thing we ask, it’s this: support your local cafes, bars, and restaurants. They need you now more than ever.”

Earlier this month, Stem restaurant on Hindley St, Midnight Spaghetti and Roxie’s bar on Grenfell St, Adelaide, also revealed they were closing their doors.

Originally published as Hospitality operator Josh Rivers, of CREAM and Diamond Burger at Jetty Rd, Brighton, says current crisis is worse than Covid-19