Hospitality fears a Victorian Covid-19 ‘lockdown-lite’ future

Victorian hospitality businesses say it takes weeks to rebuild consumer confidence after lockdowns, and they’re expecting ongoing financial pain.

Victorian Health Minister Martin Foley. Picture: Ian Currie

Victoria’s pubs, restaurants and events companies say they face ruin because of expected ongoing caps on customer numbers as the state slowly exits its fifth lockdown.

The state is likely to emerge from lockdown at midnight on Tuesday, after recording 11 new cases of Covid-19 on Monday, all of which have been linked to current outbreaks and are in people quarantined throughout their infectious period.

Stringent rules on density limits are expected to remain.

Victoria’s pubs, restaurants and events companies say they face ruin because of expected ongoing caps on customer numbers as the state slowly exits its fifth lockdown.

The state is set to emerge from lockdown at 11.59pm on Tuesday, after recording 11 new cases of Covid-19 on Monday, all of which have been linked to current outbreaks and are in people quarantined throughout their infectious period.

Schools, retail, hairdressers, beauticians and even gyms are set to reopen, while the 5km travel limit will be scrapped.

As was the case after the last lockdown, 25 per cent of office workers or up to 10 people – whichever is larger – will be permitted to return to the workplace, and outdoor gatherings of up to 10 will be allowed.

Hospitality may be granted an upper limit of as many as 100 ­patrons – up from 50 when the state reopened after last month’s lockdown – although a final decision on this measure will not be made until Tuesday morning and a density limit of one person per 4sq m will apply.

The Australian understands masks will remain compulsory ­in public spaces and outside. Mask rules are likely to continue until a substantial proportion of the population has been vaccinated.

The immediate reopening of gyms is likely to be welcomed by the struggling industry, which stayed shut for an extra week following the last lockdown.

However, the density quotient is likely to remain a challenge for many businesses.

Senior Andrews government ministers and health officials met on Monday night to map out the easing of restrictions, with final details including hospitality caps set to be agreed to on Tuesday morning, ahead of a press conference.

Pickett and Co owner and restaurateur Scott Pickett said if contact tracing was effective and no mystery infections were identified, rules on hospitality should be eased significantly. “Operating under restrictions is extremely difficult and it’s the fifth time we have had to deal with this,” he said.

“Whilst our thoughts are lockdowns seem to be working, we should be able to (snap back) to business and life as usual.

“If we are going to continue to have these short sharp lockdowns, it should be stop and go. There should not be limits.”

The Melbourne-based chef with seven restaurants to his name — including Longrain, Matilda 159 and Estelle — said in the absence of JobKeeper and sufficient vaccination rates, the sector would continue to suffer under lockdowns and ongoing restrictions.

“What happens is consumer confidence takes two, three, four, five weeks to build. We struggle to get that momentum going again (after lockdowns). There are impacts for many months,” he said.

The founder of one of the nation’s biggest catering and events companies The Big Group, Bruce Keebaugh, said businesses in the sector were just surviving, with many unable to open since the state’s last lockdown began in May. “We are still in lockdown four. Financially, it is basically sending people to the wall,” he said. “Hospitality will be the worst-affected industry because we are the first to shut down and the last to open.

“Most businesses are standing down staff. We are back to the horror and fear of March 2020.”

Mr Keebaugh said he understood why the state government had opted for a risk-averse approach to Covid-19 after a devastating second wave in 2020, but he said red tape held back innovative solutions such as rapid antigen testing and priority vaccination for hospitality workers to keep future outbreaks under control and allow business to operate.

“Vaccination has to be part of the conversation. I want young hospitality workers … to have priority. I would like big businesses like ours to pay a premium to have people inoculate staff on site.”

Australian Hotels Association Victoria president David Canny said even if venues were allowed to open on Wednesday, density limits meant many pubs, restaurants and clubs could not trade profitably. “The slow burn-back digs a hole for business,” he said. “We want to get going and we want to trade, but we can’t do so if the restrictions are too tight.

“The government needs to tailor something for the industry. We are going to lose operators if there is no government support.”

The Australian understands the Andrews government is working on a package to provide further support for industries that face losses as a result of ongoing restrictions after the lockdown is lifted.

However, Premier Daniel Andrews did not front the media on Monday, and Health Minister Martin Foley would not be drawn on the issue, “but I do note that Victoria has spent more than $7bn on active business support,” he said. “That support is ongoing, but I’ve got nothing to add in terms of predicting what businesses will or won’t be open as a result of restriction announcements tomorrow.”

Chef Shane Delia said while Melbourne’s CBD was empty and venues needed to severely limit patrons, hospitality outfits would operate at a loss. “We are paying full tax and full rent rates, but we don’t have half of our customers in the CBD,” he said. “Customers don’t feel confident coming into the city.”

The Maha chef and Providoor founder said the pandemic provided the hospitality industry with an opportunity to evolve in the digital world but ongoing limits to patrons in restaurants meant businesses could only “half-open … It is the constant uncertainty of the future that kills us. Either we open up or we don’t. It’s mixed messages.”