Brace for mass restaurant closures

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According to Alan Kohler, the requirement that diners occupy four square metres each under current regulations in Sydney and Melbourne, alongside average rents for restaurants in those cities costing $3,000 a year per square metre, means that restaurant-goers would need to spend $300 a head for the average restaurant to break even.

This suggests that a huge number of restaurants are facing closure unless COVID-19 restrictions are dramatically eased.

Most restaurants were already struggling to survive before COVID. Now they are facing outright decimation.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.