Cafes say landlords putting pressure on

PHOTO: MANDY TE/STUFF Coffee Clubs stores, which employed about 800 people, had managed to retain staff through the wage subsidy scheme, but it did not cover overhead costs.

Landlords are threatening legal action if businesses cannot afford to pay rent, the director of cafe chain Coffee Club says.

Coffee Club and Bird on a Wire director Brad Jacobs said owners of non-essential businesses were being forced to make full rent payments despite having generated no revenue during the past two weeks.

Jacobs said the 66 Coffee Clubs stores, which employed about 800 people, had managed to retain staff through the wage subsidy scheme, but it did not cover overhead costs.

“It’s pointless to have all your staff if your business could close down,” Jacobs said.

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