16% of Hospitality Businesses Face Closure Amid Rising Costs

CreditorWatch has highlighted that 16.2% of hospitality businesses are at high risk of failure due to factors like high interest rates and the lingering effects of the pandemic. The forecast predicts that 8.9% of food and beverage establishments could close by 2025, with current insolvencies in the sector described as 'record high.' CEO Patrick Coghlan anticipates a peak in insolvencies mid-year, potentially alleviated by interest rate cuts from the Reserve Bank of Australia. Conversely, industry leaders, like Dean Merlo of Merlo Coffee, emphasize ongoing pressures from rising costs, particularly in coffee prices, which could deter customers. Meanwhile, in Seattle, a proposed bill aims to allow cafes and corner stores in all residential neighborhoods, promoting community engagement and walkability, although local officials express concerns over state intervention. The legislation would require cities to permit these businesses, with specific conditions regarding hours and operations.