BUSINESSES ARE STRUGGLING IN MOOLOOLABA DUE TO HIGH RENT PRICES AND LOW TOURISM
The high rent prices and a lack of tourist activity in the Mooloolaba area has caused hardship for small businesses, with many choosing to close down this year.
Kevin Annetts Property Director Kevin Annetts said he noticed cafés and restaurants were affected.
“Fixed overheads are too high to run a business, including rent, power and staff wages,” he said.
Owner of Sunflower Florist Katy Tomlinson said she opened her beach-side store 10 months ago but is now forced to close, due to the financial costs and low number of customers.
“Usually in a day, I will receive about 10 customers; buying gifts, cards and flowers.
“For my business, I have to pay $497 a week in rent along with electricity, fresh flower stock weekly, gift stock, advertising costs, phone and internet bills as well as fuel for deliveries,” she said.
Mr Annetts said the rent is based on the position of the shop on the beachfront and the size of its outside area.
“Mooloolaba rents are some of the highest in Queensland,” he said.
Miss Tomlinson said she believes Mooloolaba is perceived as a booming area with tourists visiting year-round, which it isn’t always.
“My shop is in a very quiet location with not a lot of foot traffic.
“Even in the summer people aren't really in Mooloolaba looking to find lots of gifts - they just want to go to the beach.”
Miss Tomlinson said she doesn’t believe the location is worth the amount she is paying.
“The location I'm in isn't suitable and the population around my store is too transient to build up a foundation of reliable repeat customers.”
Two empty store spaces close to Sunflower Florist are up for lease.
The 21-year-old said it is almost impossible for her to make a substantial profit, even with the funds from her busiest events of Valentine’s Day and Mother’s Day.
“These busy times have not made up for the quiet times.
“They will pay my bills, but I won’t make any profit for myself after the day,” Miss Tomlinson said.
Miss Tomlinson said she also thinks the convenience of leading supermarkets and their competitive prices make it so difficult for small businesses to thrive.
“People know what to expect when they walk into a supermarket and it saves them the hassle of finding reliable local businesses,” she said.
Miss Tomlinson said she has decided to close down the shop in the coming months, due to the “vicious cycle” of money issues.
“I have decided to move my business online for now but will be relocating to a cheaper location in the future.
“I believe that being online will allow me to interact more with customers and the community through blogging, social media and videos,” she said.
Mr Annetts said that he advises existing shops to try and cut down on their overheads if possible and offer better marketing, value and service.
He said anyone currently looking at renting in Mooloolaba should do research beforehand.
“Talk to all the leasing agents, find out what everyone is paying and do a comparable graph,” Mr Annetts said.