Tasmanian restaurants and cafes set to reopen, but gathering limits will make it unviable for many

Restaurants and cafes are allowed to reopen for up to 10 diners from Monday, but for some Tassie eateries, catering to a small number of diners just isn’t viable.

TASMANIAN restaurants and cafes can reopen to a maximum of 10 diners at a time from Monday, but some say that business model will not be viable for many.

Eateries have been forced to close their doors due to tough restrictions designed to slow the spread of coronavirus, although some have remained open and adopted a takeaway-only model.

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Tasmanian Small Business Council chief executive Robert Mallett said while the 10-person limit would work for some businesses, he did not expect a flood of eateries to reopen to diners from next week.

But he said many hospitality businesses would be weighing up their options and rethinking whether they could be profitable under the gathering limits.

“You could have a 6pm- 7.30pm sitting, a 7.30pm-9pm sitting, then they might have a 9pm to knock-off time type sitting,’’ he said.

“You could get 20 people in [in total], if 20 people all spend $50 a head, for example, it’s $1000.”

Mr Mallett said the 10-person limit would suit some smaller eateries, but those with a greater capacity would need to carefully consider costs and benefits.

The owner of Hobart Italian restaurant Cultura, Luke Rocchia, said the business would not consider reopening to diners until at least June, when the gathering limit is increased to 20.

When the COVID-19 lockdown kicked in, the Liverpool St eatery turned to a takeaway and delivery service, which he said had been a success.

“Because of all the effort and work we’ve put in to setting up the new model, allowing 10 customers to dine in would turn it into a more ineffective model,’’ Mr Rocchia said.

“At this stage, from a business point of view, the best thing we could do is to continue this model until the restrictions ease.”

Cultura owner Luke Rocchia in the restaurant section, which will remain closed for now. Picture: RICHARD JUPE

Mr Rocchia said the takeaway and delivery model had enabled the business to continue employing 70 per cent of its staff, including all full-time workers.

Cultura is open for takeaway and delivery five days a week.

“We made the switch straight away and it was a very scary period, but we’re very blessed in that we have a customer base that are very supportive, and that support is what has pulled us through this time,’’ he said.

“Some businesses will really do well out of accepting 10 diners at a time but for others it won’t make their model as effective as it has been.

“I can’t wait to be able to serve my customers in the restaurant, I can’t wait until that day but we’ve decided this is not the time for us just yet.”

Opening to just 10 diners at a time would only be viable for a small minority of eateries, accounting and financial advisory firm Collins SBA said.

Adviser Michael Denehey said the firm had been working with the hospitality and tourism industries around strategic planning and business continuity.

“During phase 1 and 2 [of easing restrictions] it’s only going to be limited venues that are going to be able to operate. It wouldn’t be financially viable [for many],’’ he said.

Gathering limits are expected to increase to 100 in July.

Premier Peter Gutwein holds the new COVID ready sticker. Picture: ZAK SIMMONDS

BUSINESSES NEED SEAL OF APPROVAL

BUSINESSES reopening from next week will be required to demonstrate compliance with safety standards as coronavirus restrictions are eased.

Premier Peter Gutwein said workplaces, including restaurants and cafes that can reopen to diners from May 18, would need to display COVID-ready safety stickers.

No more than 10 patrons will be able to dine in these venues at any given time.

Mr Gutwein said he understood this would not suit everyone, but would enable some businesses to start trading again. “It is going to be important that both customers and staff feel safe in those environments,’’ he said.

The Premier said random audits would be conducted, while authorities would also respond to any concerns raised.