Cats in again – can they save our hospitality sector?

THE AFL Grand Final is tomorrow (Saturday, September 27) and the stress levels from Row M2 (MCG), next to the Geelong cheer squad at the preliminary final last week, were through the roof.

From a property perspective, this week our local market goes on hiatus for a week, which gives me a chance to think about other sectors. Each Geelong home match injects $5 to $7 million into the local economy through spending on hotels, restaurants, accommodation, transport, and shopping. Each time the Geelong team reaches the AFL Finals, the effect multiplies with all hospitality related businesses given a much-needed boost.

The current state of the Geelong hospitality sector is in dire need of this boost this year and perhaps we could all use this excuse to get out and party, to reconnect ourselves with our favourite watering holes and bars.

Our hospitality sector is doing it really tough. We are going through a generational change in the way our young people are choosing to socialise; the COVID-Gen Zers are not hitting the dance floor. Those born between 2001 and 2007 turned 18 during or just after the COVID lockdowns and missed the ‘rite of passage’ that we older Gen X and Millennials now consider our ‘heyday’.

They missed night clubbing until 5am, passionate dance floor pashes, and hangovers.

Instead, they have private house parties, with a limited number of known friends. They communicate via social media, rather than face-to-face, they date via social media, and they compare themselves to celebrities from other countries rather than our local heroes.

Recently, we have seen the closure of Home House, one of Geelong’s iconic nightclubs that has been running for the last 22 years, previously owned by Darryn Lyons. Followed by the Geelong Hotel, Wah Wah Gee, Beserk, Gooleys, The Workers Club, Black Bull Tapas, and even late-night eateries such as Kermonds Hamburgers have all closed since 2023.

In writing this article, I have spoken to several publicans, including the previous owner and operator of the Geelong Hotel, and the comments are eye-opening: “Kids don’t go out anymore; they simply can’t afford to.”

When a standard beer costs $12, spirits $14, and a glass of wine anywhere from $11 to $15, I can see the problem.

This is a problem our governments have created — from lockdowns to excessive taxes on alcohol and increases in casual and late-night wages. For example, beer with an alcohol volume exceeding 3.5 per cent, the excise duty is $62.56 per litre of alcohol. On spirits it is $105.98 per litre of alcohol (source: ATO). What also exacerbates the cost of doing business for the hospitality industry are the changes in employment law for people working in late night venues.

Since September 2021, the government has introduced a new hospitality award to ensure loaded pay rates. These loadings/penalties apply for hours worked outside “ordinary hours” (which vary by award) with late evening, overnight, weekends and public holiday working hours attracting higher rates.

The combined effect of increased wages and increased taxes on alcohol, like all costs, are passed on to the consumer, and have reached a point where our younger generations simply can’t afford a night out.

So where do COVID-Gen Zs go? In speaking with my nieces and nephews, I raised this very question, and the answer was interesting: “We go to house parties” where they can bring their own alcohol (bought cheaper from bottle shops) and with no bouncers or door lists. Also, shockingly for a Millennial, they reported that a lot of their friends don’t drink. Maybe missing the ‘rite of passage’ has had beneficial, healthier outcomes?

I am a 46-year-old Gen X, and I am pretty fond of my ‘rite of passage’ memories. The first dance floor, pub crawls from the Elephant Castle to Moorabool Street and ending up at the Petrol. I remember my first job working at the Lyric, behind the bar when Hunters & Collectors played, the girl that kissed me on the dance floor and disappeared. Fond memories.

I will be reliving these memories if the Cats win the flag this weekend, and I can only urge you all to seize the opportunity to give our hospitality sector a well-deserved financial boost. Please make the effort, come into town, and let’s paint the place blue and white. See you all at Piano Bar – Go Cats!

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