“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”
The Australian Restaurant & Cafe Association (ARCA) warns that the ACTU’s push for a 4-day work week would slash productivity and hit hospitality businesses hard — especially in CBDs.
“Hospitality isn’t an office job. We can’t cram service into fewer days,” said ARCA CEO Wes Lambert. “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.”
The risk is real:
- CBD office occupancy is still below pre-pandemic levels — Sydney 84%, Melbourne 82% — with most workers already avoiding Mondays and Fridays.
- UK and French experiments cutting work hours showed mixed results, with some services falling behind and higher labour costs where hours were cut without extra staff-there is no real proof of productivity gains.
- In hospitality, fewer trading days means fewer sales, or higher prices to cover costs — neither makes the economy more productive.
What will happen if it goes ahead?
- Fewer viable trading days for city venues
- Increased staffing costs to maintain service coverage
- More business closures in an already fragile sector
ARCA’s stance: Support flexibility where it works, but reject one-size-fits-all mandates. CBDs need policies that keep workers — and customers — in the city every day of the week.
ARCA’s Bottom Line:
- Less service days = less sales – CBD cafés rely on consistent weekday trade.
- Compressed hours mean squeezed margins – staff costs won’t fall just because hours shrink.
- Rigid 4-day rules hurt recovery – we need flexible workplaces, not one-size mandates.
What ARCA Proposes Instead:
- Flexible work models by agreement – allow sectors to adapt, not impose.
- Pre-implementation impact studies – test the effect on CBD trade and hospitality viability.
- Sector-level safeguards – ensure Monday/Friday trade is maintained if 4-day work is trialed.
