Melbourne’s top restaurateurs band together plea amid million-dollar losses

Melbourne’s top restaurant owners have banded together as they face combined million-dollar losses for every week of the lockdown.

Prominent Melbourne Restaurant owners are taking a stand against restrictions. Picture: Jake Nowakowski

Melbourne’s top restaurant owners are losing a combined $1 million a week as they battle to pay rent, staff wages and lost earnings amid the city’s ongoing lockdown.

They say the industry is on its knees and under threat like never before because of the uncertainty of doing business in Victoria and the risk of sudden shutdowns.

Owners across 10 of the city’s most iconic venues have joined forces to highlight their plight as they try to retain more than 1500 staff that work across their venues.

Florentino owner Liz Grossi-Rodriguez said there was a misconception that successful restaurants could simply afford ongoing lockdowns.

“We’re just the average Victorian producing their own livelihood, but we also have the responsibility of employing employees,” she said.

(L-R) Nathalie Reymond (Gitan Group), Thierry Cornevan (Bistro Thierry), Rabih Yanni (Botanical Hotel), Iain Ling (The Lincoln), Guy Grossi (Grossi Florentino), Antoine Reymond (Gitan Group), Chris Lucas (Lucas Group), Luke Stepsys (Panama Dining Room & Feast of Merit, Paul Dimattina (Lamaros Hotel), Liz Grossi (Grossi Florentino) and Jean-Paul Prumetti (France-Soir). Picture: Jake Nowakowski.

“And then on top of that businesses are inheriting tens or hundreds of thousands of dollars of debt.

“I think we need to sort of have a bit of a long term vision because this is an industry that provides a lot of revenue for the country and Victoria.”

Ms Grossi-Rodriguez said while community safety was a top priority, the government had to also consider how Melbourne’s long term recovery could be affected.

“This industry has been a huge attraction for the visitation and liveability of the city, and it might not seem important right now because people can’t travel, but in three years time or five years time we are going to want to be able to compete in a global environment and we’re going to want to be able to attract more than ever before.”

Lincoln Hotel owner Iain Ling said he had been left completely shattered by the lockdown with his revenue now down to zero.

He said if he tried to do takeaway only the losses would exacerbate.

Mr Ling said he was concerned about his employees and had been sending food home to staff to keep them going.

Owner of the Botanical Hotel in South Yarra Rabih Yanni is part of the plight. Picture: Tim Carrafa

But he feared the industry would ultimately lose a large part of its workforce to more secure industries like construction.

“We just can’t offer them the job security,” he said.

“It’s been proven over this stint that the government is not really there for us, especially in this sector.”

Chris Lucas, whose Luca Restaurants includes the iconic Chin Chin’s, 1000 people across his restaurants and in holding his workforce together is losing $500,000 a week during this lockdown.

But he said in a bid to support the struggling hospitality community some of his venues would be offering 1500 free meals per venue per day to hospitality workers affected by the lockdown

The offer, subject to conditions, is valid across Chin Chin Melbourne, Baby Pizza in Richmond and Hawker Hall in Windsor until June 10.

Australian Hotels Association Victoria president and director of the Red Lion Hotel in Ballarat, David Canny, said fearmongering by the government was a disgrace and killing the industry.

The state government has announced a $460 million support package it says will help 90,000 businesses with payments up to $7000.

And a federal government initiative, announced on Thursday, will provide payments of up to $500 for Victorians unable to work because of the extended lockdown.

Thierry Cornevin of Bistro Thierry in Hawksburn during the second wave lockdown. Picture: David Crosling

But Small Business Australia executive director Bill Lang said the payments didn’t go far enough.

“Whilst any support is welcomed, the reality is that the federal government’s $500 offer of support may assist a casual worker, he said.

“It will do nothing to help businesses with fixed costs, a high wages bill of full and part-time staff and no capacity to earn income – what businesses need is direct, substantial and immediate cash injections to help them meet overheads, anything else is mere window dressing.

“These are the realities of the decision to lockdown this State and supply little if any support to business owners. The government decision making seems to be happy to place previously strong and successful businesses at great risk and will result in job losses to thousands of young Victorians and women who make up the bulk of employees in the hospitality sector.”

“Victorian small business owners are being crucified and asked to bear an enormous cost for the health of the nation, they must be compensated for the losses they are suffering.”

Mr Lang has started a petition at www.sosbiz.com.au calling for changes to ongoing lockdowns.