Small Business on Struggle Street

There are some worrying signs about the state of the Australian economy.

We know many families are doing it tough, but it's the business environment that signals real trouble ahead.

Every major city has vacant shops on high streets, while the open businesses show few outward signs of prosperity.

One particular city street in Adelaide, previously a bustling restaurant strip, has lost its former lustre.

The remaining restaurants are mostly empty. I went to one on Friday, and my group of three was the only one there during the entire lunch service.

The food and service are excellent; it's just that no one was there.

It was the same for many other eateries, while the high-end clothes boutiques had more staff than customers. The only business that seemed to be doing any good was the 'grunge pub,' which hadn't been touched in 40 years.

Even restaurants with plenty of custom seem to be struggling.

I spoke with one operator who has been in the same place for more than 20 years. He said he's just paying his bills now. He claimed the imposts on business, coupled with the dip in trade, are making it very hard to survive.

The restaurant business has always been a tough nut to crack, but it often serves as the canary in the coal mine when forecasting future economic trends.

Going to a restaurant is a discretionary expense, and as financial hardship hits, it's often the first outlay to go.

After all, if you haven't got the coin to pay your inflated green electricity bill, a $60 steak is out of the question.

In fact, steak is out of the question for many families anyway. Essential meat is also beyond the budgets of struggling families. So, too, are many other household staples of yesteryear.