Cost of living crisis could close LGBTIQ+ nightclub My Lover Cindi
Adelaide LGBTIQ+ bar, My Lover Cindi, could be the latest to close under the pressure of the cost-of-living crisis.
The Pirie St bar is struggling to contend with high operational costs, as South Australia’s hospitality crisis widens.
So far this year, nine hospitality businesses have closed including The Little Banksia Tree, Enzo’s Ristorante, the Edinburgh Castle, Folklore Cafe, Morris Bakery, Red Square, and Lost in a Forest.
Big Shed Brewing is in administration and The Stag on Rundle Street is now for sale.
My Lover Cindi’s operators told Facebook users, “We are taking a moment to be vulnerable. A huge spike in operational costs along with the cost-of-living crisis means that the future of Cindi’s is uncertain.
“Over the past few months, more than seven well-established CBD venues have closed, and we are close to sharing their fate.
“Cindi’s has been the backdrop to people’s coming out, coming in, finding themselves, finding love and finding community. It is this magic that has kept us going so far.”
Duke of Brunswick Hotel is also struggling under the weight of gas and electricity bills and increased wages. It is losing $8000 a week as power bills surge.
Owner Simone Douglas, who holds three hospitality venues, is just managing to keep them going. Utility costs have gone up 30 per cent and wage costs by 21.5 per cent.
“The rising utility cost is extreme. As someone who has solar on the roof of two of our venues, the fact I’m getting a $3500 to $4000 electricity bill every month is insane,” Douglas said.
“Gas and electricity have gone up 30 per cent and then you have our work cover fee that’s gone up by $1000 a month for our premium. Superannuation costs went up for staff – which we don’t begrudge – but it’s another cost for the business.
“You’ve got all of that, plus suppliers are putting up the basic costs for everything. Everybody is under pressure but we also are too.
“Ask anyone in hospo who doesn’t have a gaming room and they’ll say their sales fell off a cliff after January.”
Ms Douglas said the Duke of Brunswick was down $8000 a week in sales during a festival season that would have historically seen them earn a weekly $50,000.
“People used to come out twice or three times a week but now they come out once, and if they don’t come out once a week then they come out once a month,” she said.
“It’s very easy for a venue to make a loss right now. If you’re a hospo owner that only offers food and beverage then you’re probably only making 5-8 per cent profit.
“There’s not a hospitality operator that isn’t asking themselves, ‘is now the time to get out?’
“You look at the return on property etc. and they’re making you more than being in the hospitality environment.
“We’ve pulled all of the rabbits out of the hats already and then you add the cost-of-living crisis on top of that.”
My Kingdom for a Horse is facing similar issues.
A recent survey they conducted with William Buck found operational costs were owners’ primary concern.
“Unfortunately, you don’t need to travel far to see a local cafe or restaurant that has shut down in recent months,” SA Business Chamber chief executive Andrew Kay
said.
“Business owners are experiencing significant pressure. Understandably, many in hospitality are concerned about their future.
“Profit margins have been squeezed if not eroded for many over the past 18 months.”
According to Australian Hotels Association SA chief executive Anna Moeller city hospitality businesses are the worst affected, particularly nightclubs which are still struggling from the pandemic.
Jonathan Jackson, 5th February 2024
