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ABC News
ABC News
Health
By Paige Cockburn

Sydney cafe owner sacks workforce amid coronavirus downturn as landlords refuse to budge on rents

Malik Houcher says just weeks ago customers were lining up outside to get a table.

A Sydney cafe owner says he has been forced to fire four employees in the past week as small businesses across Australia stare down the threat of a coronavirus-induced recession.

Malik Houchar runs Samira's Lebanese Kitchen in Parramatta and said sales had plummeted by about 70 per cent over the past week.

"It's heartbreaking," he said.

"These people I'm letting go, they're my mates, they're not just workers ... and they have rent to pay and families to look after."

On a busy day, Mr Houchar would normally have seven staff rostered on, now he has one.

"That's how much it's dropped, it's devastating."

Economists are forecasting a recession in Australia this year and say businesses face solvency problems.

But Mr Houchar holds no bitterness towards his customers for staying away.

"People are just genuinely scared for their lives, for some people, this is life or death," he said.

However, the cafe owner said some of the burden should be shared by landlords, who could reduce or suspend rents.

Mr Houchar said his own negotiations to do that had not been successful yet.

"Everyone is going to be affected, we have got to think about who's going to be affected the least," he said.

"The big guys should be taking some hits, not the workers who work for $17 or $18 an hour."

NSW Business Chamber spokesperson Damian Kelly said landlords should be as "sympathetic as humanly possible".

"We are absolutely encouraging tenants to have those conversations during this crisis," he said.

Mr Kelly acknowledged the coronavirus pandemic would be the final blow to some small businesses who had already suffered extensively through bushfires and drought.

"Some businesses won't make it," he said.

On Tuesday the NSW Government announced a $2.3 billion stimulus package, with $1.6 billion dedicated to keeping people in jobs.

As part of the measures, $80 million will go towards waiving fees and charges for small businesses such as cafes and restaurants.

There is also $450 million to waive payroll tax for businesses with payrolls of up to $10 million for three months.

In the face of uncertainty, Mr Houchar is doing his best to stay hopeful that when normality resumes, the restaurant he named after his mum will still open for business.

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