Penalty rates force businesses to close over Easter

Sky high penalty rates on public holidays has forced several Melbourne restaurants and cafes to close over the Easter weekend.

The public holiday penalty rates made it too expensive for businesses to open up on those days.

Businesses say they are still struggling to make ends meet following COVID-19 restrictions, and can ill afford to pay high penalty rates.

Emily Hazell from Serotonin Eatery in Richmond told 7News, “We stayed open this year on 1 January for the first time in six years, and we ran at a $2000 loss.

“I couldn’t do that again. I have 30 staff, so the business actually has to make a profit for those staff to be employed.”

Typically, public holiday penalty rates are more than double the usual rate. A barista who usually earns $25 per hour could make over $50 per hour on public holidays.

Some cafes and restaurants did choose to open over the long weekend, but said it was hardly worth it.

On Monday, Pete Tzambazis from Little Blue in St Kilda said,  “At this stage of the game we are happy to break even. Today, for example, we’re just not that busy and it will cost us money to be open.”

The hospitality sector is also struggling to keep staff members on the roster now that JobKeeper has come to an end.  

Irit Jackson, 6th April 2021