What impact does a freeway closure for roadwork have on service center tenants, like BP (gas station and convenience store), McDonald’s, KFC, Subway, coffee shops, and others?

It must lead to significant revenue losses for these businesses. Who is responsible for compensating them? Is it VicRoads or government authorities?

For instance, tonight, both directions of the Western Ring Road in Melbourne are closed all night.

One thought on “What happens with service centre tenants when a freeway gets closed for roadworks?”

  1. When a freeway is closed for roadworks, service center tenants like BP, McDonald’s, KFC, Subway, and coffee shops can indeed experience significant revenue losses due to decreased traffic and accessibility.

    Typically, when significant roadwork impacts local businesses, the following may occur:

    1. Compensation: In some cases, tenants can seek compensation for lost revenue from the governing body responsible for the roadworks, such as VicRoads or local councils. However, the process and likelihood of receiving compensation can vary depending on the specific circumstances and terms in place.

    2. Notification and Mitigation: Authorities usually attempt to inform businesses ahead of time about upcoming roadworks and may offer support to help mitigate the impact. This could include signage directing traffic to the service center or marketing support.

    3. Community Engagement: Often, the local government or roadwork authorities might engage with the community and businesses before starting roadworks to understand their concerns and find ways to lessen the impact.

    4. Long-term Impact: While immediate impacts can be detrimental, sometimes road improvements can lead to better long-term traffic flow and ultimately more customers once the work is completed.

    5. Insurance: Some businesses may have insurance that covers loss of income due to unexpected circumstances, which can help offset losses during the roadwork period.

    Ultimately, while some level of disruption is often unavoidable during roadworks, communication and support from government bodies can play a significant role in how service center tenants cope during these times.

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