The Australian Restaurant & Cafe Association (ARCA) has warned that the ACTU’s campaign for a four-day working week could cripple hospitality businesses in city centres and erode productivity.
ARCA chief executive Wes Lambert said hospitality simply cannot compress service into fewer days without damaging trade. “Hospitality isn’t an office job. We can’t cram service into fewer days,” he said. “A blanket 4-day rule would push office attendance into Tuesday–Thursday, leaving Mondays and Fridays even quieter. That’s a death blow for CBD cafés already struggling with a 1 in 10 closure rate according to Creditor Watch.”
Office occupancy in Sydney and Melbourne is still well below pre-pandemic levels at 84 per cent and 82 per cent respectively, with Mondays and Fridays already the weakest days for foot traffic. ARCA points to overseas trials in the UK and France where shorter work weeks produced mixed outcomes, including services falling behind and labour costs rising when hours were cut without adding staff.
The association argues that in hospitality, fewer trading days mean either lost sales or higher prices to cover costs, with neither option boosting productivity.
Its concerns include reduced viability for city venues, higher staffing costs to maintain service coverage, and a rise in business closures.
ARCA says flexibility should be supported where it fits, but warns against one-size-fits-all rules that could weaken CBD recovery. It is calling for sector-specific approaches, pre-implementation studies to measure the impact on hospitality, and safeguards to preserve Monday and Friday trade if any four-day week trial is introduced.
“The 4-day week may sound good on TV appearances—but for cafés and CBD venues, it’s a path to empty stores and debt—not productivity,” Mr Lambert said.
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