WFH and four-day weeks impacting CBD businesses
A sharp rise in Australians choosing to work-from-home on Fridays is having a ripple effect on businesses in some of Australia’s once-booming CBDs.
Pubs, cafes, restaurants and bars in Sydney, Melbourne and Brisbane’s city centres are grappling with a steady decline of customers as the weekend looms, owed in part to workers choosing to work remotely.
One shopfront in North Sydney, a major commercial hub, told patrons it would be shutting its doors on Friday because of a lack of foot traffic.
WFH and four-day weeks impacting CBD businesses
WFH and four-day weeks impacting CBD businesses (Supplied)

Joe, a seasoned restaurateur and cafe proprietor in Brisbane’s CBD, recently shared insights with nine.com.au regarding the waning tradition of Friday night staff drinks. Once a staple of end-of-week celebrations, this ritual has largely shifted to Thursdays, albeit with a noticeable decline in participation.

“There was a time when Friday afternoon drinks were a significant outing,” Joe remarked, “but now that’s moved to Thursday, and even then, not as many people are joining in.”

He highlighted the struggles hospitality operators in and around the CBD are facing, noting the severe financial pressure many experience.

“I suspect we’ll see more venues either shutting down completely or reconsidering their Friday hours, possibly closing as early as 4 or 5 PM,” Joe predicted.

The impact extends beyond bars, affecting his coffee shops too, which experience a drop in sales as Fridays progress.

“By lunchtime on Fridays, business has pretty much dried up,” Joe explained, leading some owners to reduce their operating hours or opt not to open at all from Friday through Sunday.

“Where does that leave us?” he added.

“That’s what’s plaguing a lot of venues at the moment.”

Australian Restaurant and Cafe Association (ARCA) chief executive Wes Lambert warned it might be too late for CBD businesses to claw back pre-COVID-19 foot traffic.

He is unsurprised that some venues are choosing to close on weakening sale days.

The peak hospitality industry boss said owners may want to capitalise on Thursday night customers instead.

Cafe in Brisbane CBD
Foot traffic at Joe’s cafes and bars has dropped on Fridays. (Supplied)

“We have seen the foot traffic diminish,” Lambert said.

“Thursday is the new Friday when it comes to office workers and the CBD.”

Lambert said he was “surprised and flabbergasted” to see the Victorian government push for legislation enshrining the right to work-from-home.

The already-disappearing number of office workers in the CBD could thin out further if these laws pass, Lambert warned.

“It doesn’t really make much sense,” he added.

Bar Nina in Darlinghurst
Bar Nina in Darlinghurst has enjoyed a rise in Friday foot traffic as remote workers choose local. (Instagram/@barninadarlo)

Workers turning to local watering holes

Rebecca O’Shea and her sisters own Bar Nina in Sydney’s Darlinghurst and wine bar Arms Length in Potts Point.

Both inner-city venues have experienced the opposite impact of the work-from-home crowd.

O’Shea told nine.com.au that the bars, because of their location outside of the CBD, attract locals who are knocking off early from home or are popping in to work or a meeting over lunch.

“We’ve got a lot of customers who might work in the city, but they live in Darlinghurst,” O’Shea said.

“I would say cost of living has affected people’s spending more than work from home for us.”

Lambert said venues like Bar Nina and Arms Length are enjoying the diverted foot traffic from city centres.

“Consumers are choosing to not be in the office on Fridays, and hence, they’re more likely to go to their local pub or the restaurants and cafes around their home, rather than in a CBD,” he said.

O’Shea opens Bar Nina from breakfast until last drinks and said the extended hours had helped lure in workers.

“We’ve sort of adapted our business to hit the local community to make sure that we’re a nice space for everyone,” she added.

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