Damien Brabender of Otis Dining Hall says the industry is dying. Photo: Supplied.
Local business leaders say that the hospitality industry in Canberra isn’t just struggling – it’s dying.
As a food writer, barely a week goes by when I don’t receive news of another restaurant, bar or cafe closing its doors. Behind the scenes, I hear from hospitality workers and business owners who all say the same thing: It’s going to get worse before it gets better.
While many had hoped the woes of the industry were behind them once COVID-19 restrictions lifted and the worst of the pandemic had passed, little did they know that 2020 would soon be looked upon as ‘the good old days’.
During the pandemic, governments stepped in to offer relief and support to the hospitality industry with mechanisms to subsidise rent, reduce licensing fees and provide a safety net for staff. But the industry is now facing the impacts of a cost of living crisis, hikes in commercial rents and a crippling skills shortage.
Owner and Chef of Otis Dining Hall Damien Brabender told Region that things are the worst he’s ever seen them and business owners have “been left high and dry by the government”.
“The numbers are astronomically bad, but people are handcuffed to their leases. If they stay in business, they’re losing money. If they close their doors and break the lease, they’ll have to declare bankruptcy.”
He – and other hospitality bosses – are calling on the government to offer the same support for the industry that they provided during the pandemic, not only to help businesses stay open but also to support the business owners and staff.
Empty tables are a common sight at Canberra restaurants. Photo: Region.
Tara Cheyne, Minister for the Night-time Economy, said that the reforms delivered by the government last year will support small bars and restaurants and small to medium live music venues in Canberra by cutting liquor licensing costs by 50 per cent.
“These new initiatives will save our valued local businesses up to around $3800 and will be supported by other measures over the term, including work on additional entertainment precincts and support for events on public land,” Ms Cheyne told Region.
Dave Young was the owner and chef at Temporada, and he made the difficult decision to close earlier this year.
“Personally, I was just worn down: the juice was no longer worth the squeeze. I was putting so much of myself into the restaurant, everything I had: all my time, all my money, all my effort and then you’d look at the bank account and there’s nothing in it,” he told Region.
“Everything else suffers: your health, your family, and your relationships all fall apart because you’re trying so hard to hold the business together. Eventually, you just think, ‘What’s the point?'”
The most high-profile openings in recent times have been from large hospitality groups coming into Canberra from interstate or overseas to open venues attached to the Canberra Centre.
Big companies have the external financial backing to weather the current crisis, but they may be all that’s left of the industry if the government doesn’t step in to help local small business owners.
If you’re not supporting businesses, you can’t be surprised when they close. Photo: Thomas Lucraft.
Newly appointed Minister for Business Michael Pettersson told Region he is committed to listening to Canberra’s business community.
“Canberra’s hospitality industry is a core part of what makes our city such a great place to live in, and that is why Labor committed to continue delivering and reporting against actions and objectives identified in the Small Business Strategy 2023-2026 at the last election.”
The small business reforms and other strategies have come too late to help those business owners who have already closed their doors, and Mr Brabender reminded Canberrans to support the businesses they love now.
“We see these businesses closing and then 500 comments saying, ‘Oh, I can’t believe it’. If you’re not supporting these businesses, you can’t be surprised when they close.”
Mr Young has left the restaurant game for a part-time catering gig at a wedding venue out of town.
“It’s not glamorous,” he concedes, but he’s able to set his own schedule, and he’s happy to be rid of the stress of running a restaurant.
“I feel bad for the people who have really long leases and huge loans to pay back. I love restaurants, and I’ve been in restaurants forever, but it’s such a broken business model,” he said
The best thing you can do to keep Canberra’s hospitality industry vibrant is to support locally owned venues. We dug deep to support local venues during the pandemic, and we need to do it again.
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