‘Collapsed’: Customer bills, 12 months apart, show why Sydney is broken

A Sydney bar owner has revealed that it’s not just the impact of inflation that is driving so many hospitality venues out of business.

A Sydney bar owner has revealed that it’s not just the impact of inflation that is driving so many hospitality venues out of business.

Brenton Nisbet, who runs Blue Mountains bar Bramble, said that when it comes to the costs hospitality businesses are facing, there’s “no one thing” pushing businesses over the edge, but instead described the situation as “a pile on”.

He told news.com.au a combination of rising costs, falling discretionary spending and increasing fees and taxes from different levels of government are pushing operators to breaking point.

He said that while his bar is often full, an analysis of his trading figures shows that 12 months ago, customers were spending an average of $68 per person, per visit and last weekend that figure dropped to $25 – a 68 per cent difference.

“It’s kind of collapsed in terms of discretionary spending,” he said.

Brenton Nisbet said a “pile on” of issues is driving hospitality businesses to the wall.

In response, Mr Nisbet said he has had to cut the hours of his 12 staff, and is spending more time himself working for close to free in the business.

“I’m working twice as hard and I’m not seeing any of the benefit.”

“I paid myself $4.50 an hour last year,” he said, in comparison to the $36 an hour businesses such as his need to pay 18-year-old bar staff.

He said that while he doesn’t begrudge paying staff a fair wage “it is on us to train them and yet we are required to pay a premium”.

“On a quiet day that means that 18-year-old needs to earn the business $216 per hour to cover themselves and contribute to the operational overheads of the business.”

He added that under NSW licencing laws his business is required to offer substantial snacks when serving alcohol, meaning he must keep the kitchen staffed at all times his bar is open, even if customers are few and far between.

He said that aside from staff costs, he recently received notification from Liquor and Gaming NSW that licencing fees were increasing by 55 per cent.

Mr Nisbet also hit out at the cost of local council food safety inspections.

In his area, the Blue Mountains City Council charges a $390 administration fee, plus $220 for its annual site inspection.

“Even if you pass with flying colours they still hit you with $600 in fees,” he added.

Bramble has been open for three years, but is unlikely to see a forth under its current owner.

Excise tax is another area Mr Nisbet said has seen his business take a hit.

Beer and spirits are subject to excise tax with the amount charged adjusted every six months based on inflation.

He said that with customers already complaining about the cost of a schooner of beer, Bramble has absorbed the two of the recent excise hikes without passing on these onto customers, with one of his major liquor suppliers absorbing another of the recent excise tax increases.

Rent for his Blue Mountains bar has risen 16 per cent in three years, and Mr Nisbet also hit out at commercial tenancy laws which require tenants to foot the bill for maintenance and repairs, something he describes as out of step with retail leases and out of date.

Mr Nisbet said that with the fees and taxes small hospitality businesses pay coming from all levels of government he has reached out to complain to local, state and federal MPs.

“The only solution you get given is to increase the prices and reduce your costs,” he said.

“But if people aren’t able to come in and pay the price you need to charge then that doesn’t help.”

Mr Nisbet said despite the venue often being full, customers were spending less per person.

He added that “it’s really tough to see huge businesses making record profits” when so many small businesses are on the brink.

“I’m not asking for a hand out here, I’m just asking for some government intervention,” he said.

“It’s not just about business closures; it’s about the loss of community hubs and the livelihoods of hardworking Australians.”

Due to the multiple cost pressures, Mr Nisbet, a former advertising executive who opened Bramble in 2021, told news.com.au that although the business is profitable, he is currently looking to sell.

Failing that, with his lease renewal approaching, Mr Nisbet said he’s looking at “multiple exit strategies”.