Small Businesses Struggle in Expensive Sydney

Small Businesses Struggle in Expensive Sydney

According to the recent global cost of living poll of the Economist Intelligence Unit (EUI), Sydney notched the fifth spot for the most expensive place on Earth. No wonder that small businesses struggle in expensive Sydney. In addition, more Sydneysiders and local migrants are moving to Melbourne due to how costly living in Sydney has become.

One of the factors why small businesses struggle in expensive Sydney is that the rates of Sydney businesses increase year on year. The country’s sparse population and higher wages contributed to an outrageous standard of living in the city.

Small Businesses Struggle in Expensive Sydney

Newsagencies, hardware stores, retail shops, restaurants and diners are among the small businesses struggle in expensive Sydney. For instance, Taylors Newsagency shut down after 32 years in business. Aside from the increasing expenses in Sydney, technological advancements is partly responsible for their closure.

A diner along George Street that is a local favourite is reported to be serving their last fatayer this year. Zana’s diner serves Middle Eastern and Cape Breton comfort food, which has become a part of the food culture in Sydney since the 1950s. In an interview with Cape Breton Post, the owners said that although they have loyal customers, those were not enough to sustain the costs in running the food establishment.

The city’s lockout laws are also starting to kill establishments, which are mostly small businesses struggle in expensive Sydney. For instance, the Flinders Hotel on Taylor Avenue and the Exchange Hotel on Oxford Street both ceased their operations in 2015. The two establishments were known venues of LGBTQI events and nightlife. Other bars and pubs in the area are also trying to make it work. But with dwindling foot traffic and soaring overhead costs, small businesses in Sydney will soon wind up.

Even popular restaurants are closing their doors after serving delicious cuisines for so many years. One of them is 2010’s “Breakthrough Restaurant”, Marque. According to the owner and its chef, “the personal investment in a small business takes its toll.”

Not only small businesses struggle in expensive Sydney, but also well-established companies. For instance, The Australian said that GlaxoSmithKline will “shutter their Sydney factory”. Payless Shoes, Woolsworth and Dick Smith are also winding up their operations.