The Australian:
Lean times call for little treats and small comforts, so it would make sense for cafes to be ticking along nicely during the economic downturn.
But industry insiders say that it’s only the smart operators who are doing well.
“Cafes are struggling, without a doubt,” says Adrian Raftery, a director of ARW Chartered Accountants, which has about 10 clients in the cafe sector turning over $100,000 to $700,000 a year.
“Owners have had to cut down on wages and become more hands-on.”
Raftery’s clients include cafes in the Sydney central business district that have been affected by redundancies in the banking sector.
He estimates their takings could be down on average by about 10 per cent on a year ago.
“We are seeing pockets of growth in the economy but coffee and cafes are missing out,” Raftery says.
Nevertheless, a few operators are bucking the trend, he says.
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