Rising energy costs push Parramatta restaurateur John Chammas to the brink

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Sydney small businesses, especially in the hospitality sector, are grappling with skyrocketing energy bills, forcing many to cut staff and reduce hours to stay afloat.

One such business is Mama and Papas in Parramatta, owned by John Chammas, whose gas and electricity costs have surged to nearly $7,000 a month.

“There’s no way we can reduce our energy use,” Chammas told The Daily Telegraph.

“You can’t turn your fridges off. We need the air conditioning. You can’t switch the lights off when we have customers.”

He explained that these rising costs, alongside increased wages, led him to reduce his workforce by 25 to 30 percent.

“It’s almost impossible to pass those costs onto customers,” Chammas added.

He pointed out the challenges of pricing in Parramatta, noting that customers are less willing to pay premium prices for meals compared to those dining with a view in Sydney’s more expensive areas.

The sharp rise in energy costs mirrors a broader trend across Sydney, with many businesses now struggling to stay operational.

These challenges come as new data from the Australian Securities and Investments Commission (ASIC) shows that nearly 4,000 businesses in NSW have gone into administration this financial year, including hundreds of cafes, restaurants, and retail shops.

The rising energy prices, along with plummeting consumer spend, are contributing factors, according to experts.

Source: Daily Telegraph.

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