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Businesses sandwiched by outlet

02 Jul, 2009 09:31 AM
A month after opening, McDonalds has flourished. An estimated 30,000 customers passed through the doors in the first week. But local businesses have suffered with some reporting a 50 per cent downturn in trade.

Store owner Adrian Sippell said in the first week of opening McDonalds recorded 10,000 transactions and between 8,000 and 9,000 transactions each week since. He said McDonalds currently have 75 employees, ranging in age from 15 to 55, and will employ a further 10 to 15.

“It has done a little bit better than most people thought,” Mr Sippell said. “There has been a lot of traffic, lots of Queensland number plates for their school holidays. In two weeks, NSW people will be on holidays so we will see a lot more traffic.”

Glen Innes Severn Council’s Manager of Economic Development and Tourism Wendy Fahey said the Visitors Information Centre hopes to draw families in from the car park and show them what Glen Innes has to offer.

But while McDonalds has thrived, other hospitality businesses have suffered with reports of 50, 30 and 20 per cent downturns.

Dave Jennings proprietor of Efishensea located three doors away from McDonalds has had the biggest effect, down 50 per cent of his trade.

“The way for a town to grow is through diversity not stacking too many of the one industry. With a town of less than 10,000 people there are about 50 places to get something to eat,” he said.

“I have been talking to suppliers and they said a lot of businesses are suffering. Some small food outlets are talking about pulling the pin because they can’t compete.”

Mr Jennings said while McDonalds do employ youth and he does appreciate the training and work ethics it taught, he said a lot of money made by youth is spent on things such as mobile phone credit, which does not circulate into the local economy.

Eilleen Halloran proprietor of Smeatons Bakery, agrees. She has reported a 33 per cent downturn.

“I’m terrified what will happen in summer. We will have to put people off. I feel sorry for my employees. The seniors I employ are losing their hours and their money. It is a great thing to employ the youth but they don’t pay the (council) rates.”

Mrs Halloran said McDonalds doesn’t just affect her business but all of their suppliers.

“There is no loyalty to the businesses that have been here all the time. McDonalds don’t buy anything locally,” she said. “The charities we have supported for 19 years have come in and asked for donations but we just can’t afford to donate.”

Bret Cummins of the Crystal Room Restaurant said they have been down 20 per cent with the biggest affect on his lunchtime trade.

“We will come back but we will never get back to where it used to be because there is an extra food outlet in town,” he said.

Letitia Smith of Al’s Takeaway said in the first week McDonalds were opened she was down $2500.

“This week we started to see regular customers come back. Takings are going back up but not anywhere near the normal levels.”

Council received no submissions from local hospitality proprietors objecting to the McDonalds development. Mr Jennings said in hindsight he should have objected but at the time was not the proprietor of Efishensea and had no apparent reason to object.

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Brave face... Smeatons Bakery proprietor Eilleen Halloran and employee Lyn Dwyer making fresh cakes for the Bourke St business which has reported a 30 per cent drop in trade since McDonalds opened.                    Photo: Naomi Davidson
Brave face... Smeatons Bakery proprietor Eilleen Halloran and employee Lyn Dwyer making fresh cakes for the Bourke St business which has reported a 30 per cent drop in trade since McDonalds opened. Photo: Naomi Davidson

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