SAN ANTONIO – The food-services industry in Sydney is likely to close down in 2018, and there will be fewer jobs available, according to an article published on the Sydney Morning Herald website on Tuesday.
The article, entitled Sydney’s restaurant and catering industry closes, warns that the closure is being driven by the “end of the wine, tobacco and spirits boom”.
It warns that “the retail and hospitality industry will also see a drop in growth, as consumers will have to make the choice between food and leisure”.
It states that “more than a third of the jobs in the hospitality industry are in the fast-food and fast-casual sector”.
Sydney is home to some of Australia’s most prominent restaurants and bars, with more than 50 restaurants in the CBD alone.
The industry is expected to lose about 20,000 jobs by 2020, as the “casual” food and drink business expands in Sydney.
The restaurant industry was hit hard by the closure of Sydney’s premier wine, restaurant and wine bar, the Cipolla, in March.
The company announced in December that it would close in 2019.
The closures were also blamed on the high cost of wine, the high-profile rise in costs of the new $300 million wine-processing plant at Tullamarine and the introduction of more wines and spirits.
In a statement to the Herald, the Australian Competition and Consumer Commission (ACCC) said it would examine the industry’s plans.
“We are working closely with the industry and are working on a range of options to ensure that we can help the industry to survive in the coming years,” it said.
“The Australian consumer has a right to know how much food and wine they buy and where they are getting it.
The government has an obligation to ensure consumers get the products they expect and expect from retailers.”
It said the ACCC would consider the impact of the closures on consumers and retailers.”ACCC will take action if the industry fails to respond to the ACCCC’s request,” it stated.
“While the ACCAC’s review of the industry will continue, we will be keeping an eye on the industry in the short term.”