Food courts on last legs

ONCE a bustling hub of many shopping centres, food courts are now becoming ghost towns, with revenue down by as much as a whopping 80 per cent, and many outlets in danger of closing.

Battling reduced retail foot traffic, more consumers shopping online, compulsory mask wearing indoors and lockdowns, many operators are on the verge of financial and emotional collapse, industry bodies warn.

“Small businesses and retailers are just scraping by on the last of their financial reserves and … emotionally all small business people I talk to are just at the end of their tether,” said Mary Aldred, chief executive officer of the Franchise Council of Australia.

Food courts in CBD and tourist areas have been the hardest hit as office staff continue to work from home and both interstate and international visitors numbers have dried up.

Also hurting were food courts near universities as international students, who were previously some of their most regular customers, have returned home.

With operators reporting drops in revenue by as much as 80 per cent during lockdowns and a slow bounce-back, National Retail Association chief executive Dominique Lamb said many food court businesses were in danger of permanently closing.

“Yes, absolutely because they’re mum and dad businesses, often franchised, most of the time they’ll have their house attached to these businesses. It’s definitely a very real risk,” Ms Lamb said.

Husband and wife Bulent and Kamila Yazgan own two kebab shops inside shopping centres: Turkish Kebab at Deception Bay and QLD Kebab & Pizza in Arana Hills, and said business was down up to 50 per cent at both venues.

“People are in a panic because they think there’s a big possibility that the same thing (happening in Sydney) will happen to Queensland next month, so people start to save money (and aren’t buying takeaway),” Mrs Yazgan said.

She said food retailers had shut down around her, with Turkish Kebab now the only operator in the food court at Deception Bay’s Market Square.

Unable to get rental relief and fighting rising food costs, Mrs Yazgan said they had let go of all staff at the Deception Bay store, with only her husband working in the shop.

But she said the cutbacks weren’t enough and she called on the federal government to waive GST payments for small businesses that were struggling.

“Every quarter they send us a bill for $8000 or $9000 in GST and they’re just sitting there (unpaid),” she said.

“If they can waive the GST fee, if they can waive it for those who have a big debt that would really help.”

Ms Aldred said Queensland food businesses needed rental assistance, with some shopping centre operators paying more than $200,000 a year in rent for a tiny 25sq m site.

She wanted to see the commercial tenancy relief schemes that were in place last year reintroduced in Queensland.