SA small businesses grapple with closure as penalty rates hit Easter Sunday for the first time

Business owners in South Australia say the increased cost of mandatory penalty rates this Easter long weekend will cripple their operations - with several deciding to close rather than face increased operating costs.

‌The introduction of public holiday penalty rates on Easter Sunday has placed hospitality venues in a quandary.

‌Ashley Coulls, the operator of the British Hotel in Port Adelaide, said the additional costs would make it challenging to operate profitably, leading to the decision to close the pub over the Easter weekend.

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‌"It was a tough decision, but probably easy in the end - that's what we have to do," he said.

‌"For a place with no pokies, it's harder and we really need to be really busy to make it a success all weekend."

‌Argo on the Parade in Norwood has opted for a combination of reduced hours and surcharges.

‌"We do have to charge an 18 per cent surcharge this weekend," Anastasia Drozdorff from the cafe said.

‌"But even with that surcharge we just break even. It won't cover all the overhead costs."

READ MORE: Where you can - and can't - buy alcohol over Easter

‌Despite the concerns, some customers told 9News they supported the surcharges and Premier Peter Malinauskas has defended the penalty rates.

‌"They'e giving up precious family time and I'm very comfortable with them getting a higher rate of pay for it," he said.

‌The debate over penalty rates has ignited discussions about the viability of small businesses, the importance of workers' rights, and the impact on consumers.

‌As the Easter long weekend approaches, the choices made by businesses and the reactions of customers will shape the future of holiday trading in Australia.

‌This article was produced with the assistance of 9ExPress.