Restaurants hurt by the snap ‘circuit-breaker’ lockdown over five days in February are being offered up to $3000 in State relief.
With just hours notice, businesses were ordered to shut at midnight on Friday 12 Feburary in response to a cluster of Covid infections linked to the Holiday Inn hotel quarantine cluster.
Eateries were forced to throw out food and close their doors ahead of the traditionally boom weekend of Valentines Day and Lunar New Year celebrations.
Springvale restaurant owner Andy Dang, who had a tonne of noodles, stocks and other foods go to waste, said the grants were small compensation.
His restaurant Hoa Tran bore costs of about $1000 a day without even opening his doors.
The labour cost of shutting down and preparing to re-open was about $2000 alone – let alone the lost trade and wasted food over the weekend.
“It’s like he’s saying you wear some costs because I’m trying to protect you.
“He should do something to help people stay on their feet.”
Dandenong restaurant owner Minid Patel said the grants were “better than nothing”.
But another snap lockdown would destroy his business, he said.
Out of desperation, Mr Patel was prepared to wear a $10,000 fine by opening Honest Restaurant in defiance of lockdown in October.
He has also recently opened an Indian vegetarian food truck eatery Paratha Wale in a warehouse in Clyde North.
It was good timing given there was no many vacant business properties and the lower overheads – but the circuit-breaker lockdown has applied unwelcome pressure.
Mr Patel said the economy had tightened since Christmas. It would be even harsher after Easter, he said.
“If there’s one more lockdown in the next six months, both businesses would be under threat. All of my 24 staff will lose their jobs, and I’ll be losing a couple of hundred thousand dollars.”
On 21 February, the State Government announced a $143 million Circuit Breaker Support Package for more than 50,000 impacted Victorian businesses.
It included a one-off $3000 payments for previous recipients of the Licensed Hospitality Venue Fund. More than $165 million had been paid to about 7500 businesses.
Also a new $92 million Business Costs Assistance program offered $2000 grants for eligible businesses.
Industry Support and Recovery Minister Martin Pakula said: “Victorian businesses played their part in the circuit breaker action and this package recognises that the impact for many was severe.”
The State Government has provided more than $6 billion for businesses and workers during Covid-19, including $2.6 billion in Business Support Fund grants to 134,000 businesses.
