Virus economic toll mounts

Coronavirus has claimed another economic scalp with the closure of a popular Cowes restaurant.

The closure of Fork n Waffle, from July 19, comes as other local traders predict further shutdowns in the face of the financial fallout from the pandemic.

Last week the Advertiser reported Cheeky Goose’s Robert van den Brink said he had already lost $350,000, adding his doors could close following the end of JobKeeper unless more could be done to support the industry by the island’s tourist and business groups.

Fork n Waffle’s Ben White last week alerted customers of the closure of their Thompson Avenue restaurant because “the current pandemic has taken its toll”.

“We believe that our mental health needs to come first and the constant worry about finances, sickness or getting locked down again has made this decision a little easier than we thought,” Ben wrote on a Facebook post.

“Believe me when I tell you, it ain’t over yet. The local businesses will be affected for years to come and without rent relief, the renegotiations of leases and lots of support from locals, more and more will shut. It is not the same island it was last year and it won’t be for a long time.”

Ben told the Advertiser their landlord wanted full rent “because they believe we are trading therefore making money”.

“Our 10 maximum guest will not change until the 4 metre2 rule is gone so this talk about it all getting back to normal is ridiculous for restaurants of our size,” Ben said.

“We have already seen business shut down forever and others that haven’t even tried to reopen. The government grants were a great help and we wouldn’t have been able to keep open without it. The pressure on the non-takeaway food industry is far from over and the end of Jobkeeper and other stimulus like rent relief will cripple it beyond repair.”

He said the potential threat of another lockdown was impacting the mental health of hospitality workers, while his staff were working harder than ever “just to get numbers in”, and even then “we deal with irate guests because we follow the rules”.

“The sad side is all the businesses that are allowing more guests in than the 4 metre2 rule. It’s dangerous and will only get everyone on lockdown again. At least two-thirds of businesses won’t come back from another lockdown and neither the shire nor the police are doing a thing about it.

“We send away more guests than we serve because we follow the rules and it’s crippling.”

He said one of the slow burns on Phillip Island was the loss of track days at the racing circuit, with the “trickle effect getting bigger”.

“I don’t think people have really thought about that one. Supermarkets won’t be hiring, houses won’t be rented or cleaned afterwards, lawn mower services won’t be used to get the houses ready.”

Support

Previously trading as Nordic Kantine, Fork n Waffle will be open over the school holidays every day except Tuesdays and Wednesdays.

Ben said following the restaurant’s closure, he will be studying mental health while his wife Tanja will focus on her teaching career.

“We are using this opportunity to restructure our lives. But more importantly, we’re going to enjoy every weekend with family and friends.”

Ben thanked the community for their help and support and said their apprentice Tyla was leaving the business as a qualified chef.

The news of the closure saw an outpouring of support from customers.

Shan Louise wrote: “This such sad news. You guys were a massive asset of that island and I'm sure the locals will be sad to see the doors close, good luck with future endeavours.”

Ryan Andre commented “all the hard work you put in during the lockdown should not go unrewarded”, while Jen Couch agreed the island “isn't the same and we all need to pull together so that more businesses don't close”.

Other traders

Last week Cheeky Goose’s Robert van den Brink told the Advertiser he had already lost $350,000, adding his doors could close following the end of JobKeeper unless Destination Phillip Island (DPI), the Phillip Island Traders and Business Association and the Bass Coast Shire had an industry-wide plan to increase tourist numbers.

“Expenses are still coming, the tap is still running, rent, utilities, insurance, body corporate. We’re still losing thousands of dollars a week without a customer base visiting Phillip Island,” said Rob, who has had the business for five years and been in hospitality for more than two decades.

“I’m prepared for losses for three months and then I’m done. 

“The full effect of this pandemic will be felt come October, once Jobkeeper wage subsidies run out and business have to pay full wages. A lot of businesses I have spoken to here say they’ll have to pull the pin once the subsidy finishes.”

Rob said there needed to be an urgent joint effort, “coming together to achieve goals”, with individual marketing of restaurants, accommodation and other business “not enough”.

“Phillip Island needs to focus on Phillip Island and let other parts of Victoria focus on their problems.”

Owner of three hospitality businesses in Cowes Andrew Higgins said he had lost thousands of dollars since the pandemic.

“People tend to think everything is going back to normal but I believe the real hit will come later in the year. It’s too early to say how we’ll go.”