Pubs and restaurants forced to close during the coronavirus pandemic may never reopen their doors, industry experts warned.
Grim predictions showed that a quarter of cafes and eateries are likely to go bankrupt thanks to months of little to no businesses.
Across Australia, businesses were forced to shut their doors on March 23 as COVID-19 cases rose across the country.
But eight weeks later, and with the infection rate plummeting, many are being offered the option to open up – but some simply can’t afford it.
Industry expert Wes Lambert, chief executive of the Restaurant and Catering Industry Association, said he ‘only expects 75 per cent of businesses to survive’.
A shut down café for sale in Mollymook on the NSW south coast (pictured on April 7) after businesses across the country were hit by COVID-19 restrictions
A group of women are seen enjoying drinks as they wait for their food at the Darwin Hotel on Friday (pictured) as restrictions were lifted
‘We expect thousands of hospitality businesses to close due to this crisis but we are optimistic for the future,’ he told the Herald Sun.
‘Our advice (is) it’s better to stay open for takeaway and delivery, to keep contact with your customers and community, than to try and shut and re-open on the other side.
‘Once those doors close, more often than not they close for good.’
This is despite the federal government’s $130 billion wage subsidy scheme, JobKeeper, which does not include casual workers – many of whom work in hospitality.
Victorian businesses are particularly at risk, after it became the only state that didn’t move to reopen restaurants and pubs.
A normal busy restaurant in the tourist town of Hahndorf in the Adelaide Hills is seen empty on March 31 (pictured) with industry leaders warning many may never reopen
Three women are seen walking in Melbourne on Thursday (pictured) wearing face masks, with the country suffering the crippling economic impact of the coronavirus crisis
A closed sign is seen in a shopfront in Sydney’s Newtown on May 7 (pictured) after thousands of businesses were forced to close
The state’s premier Daniel Andrews has not indicated when such businesses can be opened, but it won’t be before May 31.
Of the nearly 900,000 businesses that have signed up for JobKeeper, more than a quarter are in Victoria.
Speaking on Friday, after restrictions were relaxed in much of the country, Mr Morrison thanked the businesses which chose to open.
‘As businesses and cafes and others are opened up this weekend, those businesses know that just ten patrons at a time won’t necessarily be a profitable patronage for them to really sustain that,’ he said.
‘(But) they’re backing themselves, they’re backing their staff, they’re backing their communities and they’re backing their country.
Some hospitality leaders said they worry a customer limit may not be financially viable (pictured, a worker wearing a face mask in Melbourne on May 9)
A bar in Melbourne is seen shut up on Thursday (pictured) as state officials in Victoria refused to reopen businesses
‘I want to commend them for that brave step they’re taking this weekend — good on you for reopening.’
But thousands did decide to keep their doors closed, saying that opening for limited numbers of people would not be financially viable.
Hospitality giant Merivale confirmed it would stick to operating on a takeaway-only policy until restrictions were eased further.
Matthew Karagiannis, who works at the company’s Palmer & Co bar in Sydney, said there were still concerns about staff safety.
‘Everyone is conscious working in hospitality of the risk if the virus continues to spread,’ he told The Australian.
Two friends are seen enjoying a large glass of white wine as they went to the Chow restaurant in Darwin on Friday (pictured)
A bar manager is seen emptying the fridges at Melbourne’s Notting Hill pub on March 23 (pictured) with Victorians still unsure when bars will reopen
Merivale runs several Sydney stalwarts, including Mr Wong’s, Mimi’s, Totti’s Bondi, The Paddington and Lotus.
Australia’s unemployment rate has surged to a five-year high following the COVID-19 business closures, with many more people not counted in the official statistics.
The jobless rate soared from 5.2 per cent in March, before the coronavirus shutdowns of non-essential businesses, to 6.2 per cent in April.
This is the highest level since September 2015 as a record 600,000 Australians either lost their job or gave up looking for one.
In the Northern Territory, eager beer lovers flocked to the pubs and delighted landlords flung upon their doors as coronavirus restrictions were finally lifted on Friday.
Women are seen in their droves getting their nails done for the first time since March 23 at Cre8tive Nails in Darwin (pictured) on Friday
The territory hasn’t recorded a single new case of deadly COVID-19 since April 6, nearly six weeks ago.
Territorians were keen to celebrate their successful battle against the virus, and flocked to pubs, restaurants, cafes and gyms.
In Victoria and South Australia, people still aren’t allowed to have a beer in a pub or restaurant.
It is being left up to each state to decide when the federal government’s three-step coronavirus restriction lifting plan will be put into place.
In New South Wales, restaurants, bars and cafes were allowed to open on Friday with a ten-person limit and social distancing.
Punters also need to buy a meal to get alcohol.
Restaurants forced to close in Sydney (pictured on March 24 after lockdown began) may never reopen, experts warned
There are fears that many businesses forced to close during the COVID-19 pandemic lockdown may never reopen (pictured, empty tables at a cafe in Sydney on Friday)