Canberra's light rail construction on London Circuit has caused significant financial strain for local businesses, with some reporting revenue drops of up to 50%. The Cupping Room, a popular cafe, has seen a 30% decline in trade since works began in February 2025, with weekend trade nearly halved. Manager Danny Moreno described the situation as challenging, noting that customers are avoiding the city center.
Other businesses along the circuit report similar struggles. Roy Jr. owner Nick called the impact 'pretty ruthless,' while Fav Cup cafe manager Nat Se has had to cut staff due to a 50% drop in weekend sales. Little Steamer owner David Hue reported a 30-40% decline, attributing it to parking difficulties caused by road closures.
Charcoal Restaurant owner Anna Gray previously expressed doubts about surviving another year of construction and declined to sign a year-long lease. In Hobart Place, Two before Ten co-owner Blake Proberts noted a drop in customers but was grateful not to be directly behind construction fencing.
Stage 2A of the light rail, extending to Commonwealth Park, is expected to open in 2028. Business owners have called for government support, such as reduced liquor licenses or land rates. The ACT government has offered a marketing campaign, business advice, free parking, and a 'fare free evenings' initiative launched in December 2025.
Some businesses are considering a class action for lost revenue, following a High Court ruling in December 2025 that could set a legal precedent for compensation. The government says it is evaluating support measures and will continue engaging with affected businesses.
