As the cost of living continues to rise and the economic landscape shifts, many Australians are looking for ways to tighten their belts. A new trend has emerged, particularly popular on social platforms, where individuals commit to a ‘No Buy’ year, vowing to cut out non-essential purchases in an effort to save money. While this trend may seem like a savvy financial move, it’s raising alarm bells for small business owners across the nation.
Bonnie Munro, the proprietor of Boho Bubbles and Brew Mobile Bar and coffee shop in Queensland, has voiced a desperate plea to the public. She’s urging Aussies to consider the broader impact of their spending habits, particularly on small businesses that are the backbone of local communities.
The ‘No Buy’ trend, which is gaining traction online, encourages people to eliminate discretionary spending such as dining out, buying gifts, or purchasing non-essential items for the home. While this may bolster personal savings, it’s a trend that could have dire consequences for small businesses already grappling with the challenges of inflation and stagnant interest rates.
Munro, who took the leap with her business partner to focus on their entrepreneurial dream, has felt the pinch firsthand. She’s even taken on extra jobs, such as delivering for DoorDash, to keep her business afloat. ‘I have to do it because I need to make the mortgage payment,’ she explains, highlighting the stark reality many small business owners face.
The hospitality industry, in particular, has been hit hard, with the food and beverage sector recording the highest failure rate of all industries, according to the latest CreditorWatch business risk index. The trend of cutting back on visits to cafes, restaurants, and pubs is contributing to an increase in business closures and insolvencies.
Munro’s message is clear: while it’s understandable that individuals want to save money, especially in tough economic times, she encourages Aussies to think of ways they can still support small businesses. ‘We know it’s impossible to buy from us all the time, but just where you can, we appreciate it,’ she says.
New research from Compare the Market reveals that 77% of Australians are trying to cut their spending to save extra cash, with takeaway meals, clothing, streaming services, and cafe coffee among the top items being slashed from budgets. While millennials are more likely to cut back on takeaway meals, the trend spans across generations.
How do you manage to save money while also supporting local businesses? Have you discovered any strategies that work well for you? Share your thoughts and ideas in the comments below, and let’s support each other in finding sustainable solutions during these financially challenging times.
Also read: Stretch your grocery budget with this practical $10 saving strategy
Maybe people should commit to not buying from multinationals like McDonald’s and KFC and support Aussie businesses.