Business owners along one of Adelaide’s most renowned beachside retail and dining strips are making tough decisions to shut up shop as they fight to survive a perfect storm of downturn.
Glenelg’s Jetty Road precinct is currently undergoing a $40 million face lift which has forced the closure of the street to vehicles and temporary pedestrian access erected.
The works are overlapping with a six-month closure of the tramline between the city and the seaside destination as the state government completes major upgrade works.
Loud Cow Bar and Grill owner Paul Turner is one operator who has made the tough decision to close his doors, deciding not to weather months more of further disruptions.
Mr Turner made the call in late August after seeing a dramatic downturn in foot traffic to his business of “probably well over 90 per cent”.
Loud Cow Bar and Grill owner Paul Turner has made the difficult decision to close his business. (ABC News: Ashlin Blieschke)
“It’s been a dramatic decrease in traffic … there’s more pigeons than people,” Mr Turner said.
He said the road closures, temporary walkways and dusty construction works had made navigating the precinct difficult and turned people away from visiting.
“It wasn’t really possible to continue to trade knowing we had more closures of the roads going on, and more disruption,” Mr Turner said.
“It’s wiping out our summer trade, we lost the school holidays trade, we lost the long weekend in October, Christmas is now looking shaky.”
It was not an easy decision for Mr Turner and the family-run business, after pouring their “hearts into it” after taking it on in 2019.
“It’s really, really tough to sit there and see the place empty … you just feel lost,” he said.
“You don’t know what to do, because you’re so used to operating at such a fast pace, where everything’s always swirling around.
“And all of a sudden, it’s nice and quiet, you could swing a cat, [and] count the pigeons.”
The roadworks coincide with a tramline upgrade. (ABC News: Ashlin Blieschke)
‘Cult following’ not enough
Coastal communities are at the same time managing the ongoing impacts of SA’s algal bloom, which has been causing respiratory symptoms in some local beachgoers.
But for Montezumas Glenelg owner Julie Baker, the cost-of-living crisis has also put an incredible strain on her business, even before all of these “other factors”.
She too has experienced an estimated 70 per cent loss of revenue since works began on the street, which she put down to people being “hesitant to come down” to the area.
“We might do 100 customers on a good Saturday night, and it’s probably dropped to about 20, maybe 30 customers, so it’s a big impact for us,” Ms Baker said.
Montezumas Glenelg owner Julie Baker says cost-of-living pressures, the algal bloom and roadworks have taken a toll on the business. (ABC News: Ashlin Blieschke)
She put a call out on social media a few weeks ago and was blown away by “what a cult following” the business had, with people coming “out in droves” to offer their support.
“We’ve been here since 1991, so that’s 34 years of business, and it’s such an old institute,” Ms Baker said.
“But there’s … [only] so many times in the week that so many customers will come back, and it is really difficult to come down here at the moment.”
Ms Baker now faces the same fate as Mr Turner did in August — weighing up the decision of how long she can hang on for before having to turn off the lights for the final time.
“The way it’s going, probably by the end of summer, we’re more than likely going to have to close down the business … that’s really, really sad,” she said.
She says it has taken an emotional toll on her.
She began working at the business while she was studying at university and raising a baby 22 years ago, before buying it years later.
“I had no money and [the previous owner] lent me the money, and so I worked here, I ended up paying for the business, and so I’ve got such a connection to this place that … I’m getting emotional,” she said.
Ms Baker said while she recognised “asking for financial support for every single business” was not practical, some form of rate relief or rent support would be “helpful”.
A City of Holdfast Bay spokesperson says spending data shows overall economic activity remains strong in the area despite the roadworks. (ABC News: Ashlin Blieschke)
Council says economic activity ‘remains strong’
The business owners claimed financial support had been lacking from the local council in charge of the works.
Mr Turner said he also “really struggled to get any information” from the City of Holdfast Bay on the specific timeline of works, making any hope of recovery difficult to plan.
“There was [a notice] that came in a few weeks ago the day before they were going to close all access to the front of our building,” Mr Turner said.
A City of Holdfast Bay spokesperson said in a statement it continues to work closely with Jetty Road businesses to “understand their needs and provide tailored support”.
The spokesperson pointed to a range of marketing and financial initiatives — including business grants of up to $5,000 and outdoor dining fee relief — it had implemented.
The council says construction within the roadway would be complete by the end of the year, with remaining works on pavements and side streets to be finished by mid-2026. (ABC News: Ashlin Blieschke)
“While council acknowledges that some businesses are doing it tough and we are focused on supporting them, recent spend data shows that overall economic activity in Glenelg remains strong,” the statement read.
It said the construction within the roadway would be complete by the end of the year, with remaining works “on some pavements and side streets” to be done by mid-2026.
In a statement from Transport Minister Emily Bourke, the government said it “strongly encouraged people to visit Jetty Rd” and said it was supporting traders in the area.
“While the tram is temporarily not running between South Terrace and Glenelg, the council decided to use this time to undergo its major works along Jetty Road,” the statement read.
“The state government is operating substitute buses to enable people to get to and from Jetty Road and the CBD. These services match the tram frequency and capacity, operating every 10 to 20 minutes during the day and night, and increasing to every five minutes during weekday peak periods.”
When asked whether he thought the upgrades would be worthwhile once finally completed, Mr Turner said he did not believe they would have a “material impact”.