Many small businesses within our community still reeling from the initial lockdown are further stifled with the decision made by the Victorian Government to close down the majority of the state by midnight tonight, in a drastic attempt to stop the spread of COVID-19.
One sector which has been affected is hospitality. It’s the owners of restaurants, cafes, and those who work there. Amongst them many new immigrants from Greece, who depend on this work to survive.
If everything went as planned, restaurants would be preparing to receive more guests by next week. Unfortunately the second wave of the pandemic in Victoria has forced them back to no guests at all.
Six weeks without income is a long time, especially if you have already depleted all your savings during the previous lockdown. Some restaurants and cafes will not be able to recover from this second blow. Though they will have to shut their doors, expenses will continue to run. Some businesses will return to take-away and delivery only. Others won’t have that option. For some, closure will be permanent if no additional support from the government is provided.
Jobkeeper payment is expected to come to an end in September unless changes are announced by the July 23 mini-budget.
So far more than a third of employees in Australia’s food services and hotels lost work during the first lockdown in March and April when COVID-19 restrictions were first implemented.
Nearly half a million jobs were lost in the hospitality sector according to Treasury estimates released in May.
In light of the new developments, Neos Kosmos will continue to closely monitor the situation, speaking to business owners and employees working in the industry, and will update you with an extensive article in the coming days.
Because we are all in this together.