There isn't a corner of the Australian economy that hasn't been affected by Coronavirus and this includes the pub industry.

WILLIAMS MEDIA spoke with Paul Fraser National Director of CBRE Hotels who said publicans are very concerned as they have been directly impacted.

Mr Fraser said, "The biggest challenge is the ever evolving and new regulations nationally, with the Prime Minister The Hon Scott Morrison making an announcement on Sunday evening, moving to a nation-wide shift of all non essential services which includes all pubs, bars, restaurants, night clubs and cafes, the exemption being Queensland and Tasmania which are able to operate bottle shops due to differing state legislation".

"For the pubs to keep their businesses operational it has become a necessity to let employees go, and with them knowledge, client relationships and goodwill"." Regretablity this would be all casual employees if not the majority lost for at least the next 6 month".

"With the immediate evaporation of cash flow being the  publicans' biggest current issue, many will be trying to extend business terms with their suppliers and or defer payments or request rent free periods from landlords where possible” said Mr Fraser.

Matt Comyn, CEO of Commonwealth Bank, said on Sunday evening that business loan repayments will be deferred for up to 6 months and along with the other big banks supported the government's initiatives.

"Publicans are incredibly resilient." said Mr Fraser.

"We saw that with the many challenges they have faced including the impacts of lock out laws, investment in ID scanners, trading hours, floods, fires, ever increasing costs of insurance and annual licensing fees."

“Business costs have been rising every year, and it's challenging to the pub industry that runs on comparatively small margins”

"Publicans are doing everything they can do to survive for the next 6 months."

Mr Fraser said CBRE Hotels is on hand to advise vendors but admitted that the industry was in uncharted territory.

"We have several assets under contract that are proceeding, but we have no new campaigns launching and have defered them until we have more clarity from all stakeholkders including our vendors and all levels of Government".

Mr Fraser said, "campaigns that are underway would continue with closing dates for some campaigns extended by up to 4 weeks".

"Most publicans are adopting a wait and see mentality in the acquisition space as they are unaware of what the short, medium or long term landscape looks like."

"We don't know how long this will last as there is no crystal ball."

"The longer the Coronavirus pandemic lasts the harder and longer it is going to be for the industry to recover, this could lead to a complete change of the landscape as we knew it." said Mr Fraser.

"This medical emergency has quickly become an economic emergency and we don't know how many casualties there will be and when will it bounce back. "The Federal government and the big 4 banks initial announcements of support and initivates have been extremely encouraging", he said.

Mr Fraser said "publicans believe their will be a staged re-opening and have been discussing operations in a new environment and have been looking at initiatives such as":

• Uber eats
• Take away meals
• Zero contact delivery of food
• Changing gaming rooms to give social space
• Shutting off areas in bars to give social distancing
• Adapting venues to suit, such as changing large venues to bars with 4 Sqm per person
• Working out what to keep open and what to shut for safety, government regulations and to stay viable
• Look at where they can cut trading hours
• Every part of business being re-evaluated
• Drive through bottle shops with ready made meals 

Mr Fraser said, "That when your local pub, bar, restaurant or cafe is back up and running we should all try and do our bit, support them as best we can within the appropriate and safe guidelines at that time."

Mr Fraser is initiating a consultation with industry stakeholders including publicans to chat about what is happening, so they can brainstorm solutions and share ideas as this pandemic continues. If you are interested in participating and contributing please contact Paul Fraser via the contact details below.

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