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At least four hospitality businesses on the Sunshine Coast have been forced to close in as many months due to poor profits, but a peak business body says there is no cause for concern.
Key points:
- A number of businesses on the Sunshine Coast have shut their doors, unable to survive the post-COVID-19 climate
- A business owner whose company was liquidated says more support for business owners is needed
- The Chamber of Commerce says businesses can thrive on the Sunshine Coast
Malt Shovel Taphouse at Birtinya shut its doors for the final time on Friday after being caught up in the liquidation of sibling company NightQuarter.
Peak Wine Bar closed last month, owing more than half a million dollars, following Eleven Dive Bar's closure in December.
Maroochydore Chamber of Commerce president Brendan Battersby said Sunshine Coast businesses were being hit by high interest rates, rising costs of living, and the lack of affordable housing.
But he said business owners could still succeed in the region.
"I don't think the rest of the hospitality industry should be worried," Mr Battersby said.
"I would hate that media is reporting those closures as being indicative of hard times in the hospitality industry because there are some great hospitality venues that are trading their heads off."
A forgotten industry
Company Food Focus, that was trading as both NightQuarter and Malt Shovel Taphouse, went into voluntary administration on November 28 after NightQuarter experienced millions of dollars of losses during COVID-19.
Owner Michelle Christoe said Malt Shovel Taphouse had to close when its landlord Stocklands was unwilling to renew the lease.
"Malt Shovel was a profitable business and we were trying to move the business into a new entity," Ms Christoe said.
She said Malt Shovel staff had been recommended for new jobs, but NightQuarter employees and contractors could remain unpaid.
Stocklands owns the land where NightQuarter was located and has been contacted for comment.
Ms Christoe said the company did all it could to keep the doors open but there was not enough support for hospitality businesses to thrive in the region.
"A lot of things stemmed from COVID — the restrictions had a big impact on a lot of businesses and there was very little support from local council and landlords," she said.
"There are also some unique constraints on the Sunshine Coast where we have the lack of a public transport network, which enables people to get safely and economically home.
"The region has the potential to build the live music and hospitality industry but that would take a coordinated effort and some planning from all levels of government in collaboration with the live music industry to develop a night-time economy.
"I'd really support something like a night-time mayor and a comprehensive sort of support plan for live music festivals, events, and hospitality to drive that industry on the Sunshine Coast."
Ms Christoe and her husband are now operating another venue in Brisbane.
Ebb and flow
The Sunshine Coast Council was contacted for comment.
"I'm not sure that the hospitality or entertainment industry requires particular attention from council or a designated council officer just because things are a bit tight," Mr Battersby from the Chamber of Commerce said.
"Hospitality venues come and go both on the Sunshine Coast and in other parts, so I'm not so sure that it requires dedicated council resources."