The Sydney Morning Herald reported that in order to maintain operations, a large number of catering and retail businesses in Sydney's CBD plan to significantly reduce their staff.
Statistics also show that thousands of F&B and retail businesses in NSW closed last year alone.
Business Sydney's exclusive survey data shows that 39% of retailers, restaurants and cafes in the CBD region expect significant layoffs in the next three months.
Eighty-three percent of businesses surveyed said they have seen a significant reduction in customer spending. The latest data from the Australian Securities and Investments Commission (ASIC) showed that a total of 724 F&B businesses closed in NSW last financial year, while 316 retail stores closed during the same period, which was a wake-up call for other businesses in the CBD.
Business Sydney's Paul Nicolaou said business in Sydney's CBD had not yet returned to pre-pandemic levels and called on the NSW government to introduce a series of measures to revive the struggling retail and catering sector.
(Image source: News Corp Australia)
Nicolaou also called on the government to issue vouchers for restaurants and cafes again and encourage more businesses to postpone their business hours until 9 p.m.
"This is a very difficult time for the CBD business community, and Business Sydney's 10-point plan can solve the complex problems faced by CBD merchants."
Nicolaou also said there needs to be more public transportation options late at night and early in the morning, and state and federal agencies should make it mandatory for civil servants to return to the office.
(Image source: The Telegraph)
Avenue Group owner Philip Barbaro, who runs six cafes and bars in Sydney's CBD, closed his shop over the weekend after foot traffic plummeted in the surrounding streets.
He said businesses in CBD were facing a "perfect storm" as agricultural and staff costs rose and customer spending decreased, coupled with large businesses continuing to allow employees to work from home.
"We are struggling with an extremely difficult situation, with declining productivity and profitability as the CBD turns into a ghost town. We can only change the direction of our business based on the needs of our customers, and this is the only way to survive. ”
Business Sydney expects 110 businesses to fail in the CBD last financial year.
Luke Mangan (Image: The Daily Telegraph)
Chef Luke Mangan, a restaurateur, said that while his customers may "limit their spending, they are happy to pay for the dining experience." ”
"Small businesses in Sydney and NSW are hurting, but as a business owner, you have to adapt and be flexible to attract customers."
A NSW government spokesperson said hundreds of thousands of people will be pouring into the CBD when Sydney Metro City opens in August.
"We have slashed our public transport fares on Fridays and are now on par with discounted prices on weekends, and we are encouraging more people to return to the office to work and spend their weekends in the CBD."
"The government has extended the operating hours of the Inner West Light Rail to 1 a.m. and added hundreds of additional services to make it easier for people to stay outdoors for longer."