SAM cafe process promises a better outcome for all

SAM has "reimagined" the expressions of interest process for the operation of the new SAM cafe and is urging local businesses to embrace the opportunity.

Going through a third EOI process isn't ideal for SAM, especially given that Greater Shepparton City Council had already agreed to step in and run the cafe for 12 months or until a commercial operator can be found.

To put it mildly, the advertising of cafe jobs by the council wasn't well received in the Shepparton hospitality industry.

The wages and conditions were well above what local businesses could offer, and they feared they would lose staff.

Because of lockdowns and pandemic restrictions on trade, hospitality has been battered financially for 18 months; they could ill afford to pay more and could not offer the same security as the council, which could use its deep pockets to prop up the business.

Every hospitality business owner I've spoken to about this issue has said they don't mind competition, but the SAM cafe needs to operate commercially.

It is worth noting that not one of the critics has expressed any reservations about SAM; they love it, want it to succeed and expect it will drive visitation that will benefit many businesses.

Two EOI processes have failed to reach an agreement with any commercial provider, but it isn't worth pondering the reasons why; the simple fact is that this one can't fail.

There is a tragic irony in the process commencing when hospitality is again suffering from Stage 4 restrictions in Victoria; some have even had to stop offering takeaway and close temporarily because they were identified as potential exposure sites.

Council is urging support for local businesses as we emerge from the Shepparton COVID-19 outbreak, and rightly so.

Following the outcry over the council proposal to run the cafe, a cracking deal was put together involving a mixture of business and philanthropy; it would achieve the desired commercial outcome and reduce the risk for SAM and the operator.

SAM Ltd quite rightly went out to market again with a new determination to get an outcome.

“The SAM Ltd board is listening to the community and working alongside many well-known businesses to find a way to make this offering work in unprecedented, challenging times delivered by COVID-19. We firmly agree with the community that a well-run café is essential to the success of SAM and should benefit the whole town,” SAM Ltd chair Stephen Merrylees said in a statement.

The EOI process is necessary, and an even better deal may emerge, but what is clear is that SAM Ltd needs to find a solution. It can't fall back on the council offer, which is generous to SAM but unpalatable for ratepayers.

Darren Linton is chief correspondent at McPherson Media Group.