This time last year the Book Kitchen in Surry Hills in inner Sydney was turning over $23,000 a week.
Now the well-known restaurant and cafe's revenue has more than halved to as little as $11,000 a week, forcing it to lay off 10 full or part-time staff.
The owners lay the blame squarely on disruption from the building of Sydney's $2.1 billion light rail line, which resulted in high barricades being erected directly outside their doors last month.
Many property owners along the route of the light rail line from Circular Quay in the central city to Randwick and Kensington in the south-east have already benefited from a surge in the value of their homes and commercial premises on the prospect of better public transport once trams begin running in 2019.
Amelia and David Birch outside their business, The Book Kitchen. They save the cafe's revenue has more than halved since construction began.Credit: Janie Barrett
But the losers have been small businesses renting premises or paying mortgages that are counting the cost from a significant decline in customers due to the disruption from construction.
The Book Kitchen's patronage has plunged because the barriers hide the cafe from the full view of people walking nearby and made it less attractive for customers who face the prospect of sitting beside a building site.
The barricades extend onto part of the footpath, claiming spaces previously dedicated to about 16 seats for patrons.
Book Kitchen co-owner Amelia Birch said she was concerned about whether her business could last until construction was completed along Devonshire Street.
Book Kitchen co-owner Amelia Birch says turnover has plunged. "They told us they would be there until early next year but I don't know if we can keep going until then."Credit: Janie Barrett
"They told us they would be there until early next year but I don't know if we can keep going until then," she said. "We have basically been forced to ... change our business model to cover our fixed costs [of $2500 a week in rent]."
She is highly critical of the consultation process in the lead-up to construction beginning on Devonshire Street.
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"They told us to go Bali for six months [during the construction]," she said of a meeting with transport planners about two years ago. "They are so unbelievably out of touch."
Businesses along Anzac Parade in Kensington also complain about the financial toll construction has had on their operations.
Greg Tannos, who has run Optical Illusions for 26 years, said his turnover had fallen by about 20 per cent since construction began in front of his shop nine months ago.
"We are the collateral damage. Any of these [consultation] meetings you get to are pointless exercises – they don't listen," he said.
Mr Tannos said other businesses on Anzac Parade had suffered a halving of revenue because because construction barricades blocked their entire shop frontages.
Labor transport spokeswoman Jodi McKay said she met about 40 small businesses owners on Thursday night, a number of whom expressed concern about whether they would survive.
"There are many business which are actually going to the wall because of this project and the government does nothing to help," she said. "Compensation does just mean paying them money. It could be in the form of rate relief or land tax [discounts]."
However, Transport for NSW said it and the light rail builders had been "working closely" with businesses along the route.
"Keeping the neighbourhood vibrant during light rail construction is a big priority. We've designed signs and hoardings to promote shops, cafes and pubs around the construction zone," a spokeswoman said.
The transport agency was also working with the Department of Industry to offer support to small businesses through a government program which used independent advisers to provide "personalised and highly subsidised" help.
Transport for NSW said it acknowledged that construction caused short-term disruption but it was building a multi-billion dollar infrastructure project which would significantly benefit Sydney, including businesses.