A recent slump in sales means Sydney liquor store owner Louise Dowling has to work an additional 40 hours a week to make up for the staff she had to let go, as a prolonged cost of living crisis in Australia drives more people to drink less.

"Without the foot traffic, without the sales, you don't have the money to employ extra people," said Dowling at her P&V Wine + Liquor Merchants store in Enmore, a popular dining and nightlife suburb.

"Everyone's trying to tighten their belts, including us."