Loved Perth cafe, Slate, closes as rising costs kills cafes and restaurants across Australia

A unique cafe in Perth, which survived the challenges of Covid-19 and even a road closure, is the latest to be struck down by new insurmountable pressures.

A unique Perth cafe that survived Covid-19 and even had its road closed says current cost pressures have delivered a fatal blow.

It joins hundreds of others across Australia that have taken the same grim step.

Dog-friendly Slate Cafe on Perth’s north east fringes will shut up shop this weekend, blaming “rising operational costs” for the shock closure.

Perth’s popular dog-friendly cafe, Slate Cafe, is closing due to rising operational costs. Picture: Instagram

“The rising operational costs have made it very challenging for us to continue operating in this current climate, and with all our increasing commitments elsewhere, we have been unable to give Slate Cafe the time and attention it deserves,” the business recently told customers on social media.

The cafe has operated since 2016 and is loved locally for accommodating pet owners with a large dog park-like backyard.

The cafe, known for its pet-friendly environment and community events, will shut down after operating since 2016. Picture: Instagram

It had become popular across the WA capital, not just for its food and coffee but also for offering frequent dog breed-specific meet-ups and all-breed and puppy play dates.

“We want to take this moment express our deepest gratitude to all of our customers who have supported us over the years, from the very first day we opened in October 2016, through the road closures, Covid and everything else in between,” the business wrote, adding Sunday will be its last day of trade.

Customers expressed sadness and gratitude for the memories shared at the cafe. Picture: Instagram

“Your support and patronage have meant the world to us and we are truly grateful for all the memories we have shared together.”

Patrons expressed their sadness with one sharing: “This is so sad. Why??? No where to go anymore like these places.”

“Oh this is such sad news guys, thank you for being such an amazing venue for families, you will be missed,” wrote another.

It marks a double-whammy in the niche pet-friendly eating space with another establishment, Dog’s Breakfast Cafe, announcing its closing on June 30.

No states spared from eatery-killing costs crisis

The closures make it apparent that no states have been spared from a costs crisis forcing major business readjustments or the closure of cafes and restaurants across the country

Last week, a well-known bakery chain in Brisbane informed its customers that it would stop selling sandwiches in three stores to cut “skyrocketing” costs.

Lachlan and Kylie Scott owners of Flour & Chocolate said ‘skyrocketing’ costs forced major business readjustments. Picture: Lyndon Mechielsen/Courier Mail

Flour & Chocolate Patisserie said it expects to see the prices of eggs and chocolate “rise significantly” in addition to crippling cost pressures “including ingredients, rent, electricity, insurance.”

Sydney’s ailing restaurant scene was dealt another blow last month when two notable eateries announced they would be closing their doors for good.

The hatted Redbird restaurant in Redfern’s bustling city fringe suburb announced its closure in mid-May.

Its sister restaurant, Tequila Daisy, will also close in the harbourside Barangaroo district.

Owners Hamish Ingham and Rebecca Lines said the double closure was due to the now familiar list of woes: high rents, staff shortages, and customers staying at home.

“We started our first business during the global financial crisis and successfully navigated Covid,” the pair said in a statement.

Well-known establishments like the Redbird restaurant in Redfern and Japanese restaurant Tetsuya’s have announced closures due to the difficult trading conditions. Picture: Nikki To

“However, the current trading conditions are the toughest we have seen.

The announcement comes just days after once of Sydney’s most iconic fine dining establishments, Japanese restaurant Tetsuya’s, confirmed it will close after 35 years in the CBD.

Suresh Manickam, the chief executive officer of the industry organisation Restaurant and Catering Australia, recently told Bloomberg that the increasing daily costs of running an eatery, including those associated with energy and interest rates, are pushing popular businesses to the brink.

The industry organisation Restaurant and Catering Australia noted that increasing daily costs and consumer cautiousness about spending have pushed many businesses, like Redbird, to the brink. Picture: Jenifer Jagielski

Additionally, consumers have become more cautious about spending money.

“There are multiple challenges at the moment,” Manickam said. “Almost every single input that goes into doing business is rising. “There’s nothing that we know of that is going down in terms of input.”

According to ASIC, the Australian accommodation and food services sector has seen second highest insolvency rates in recent years after the construction industry.

There were 1,751 insolvencies in the 11 months through May, compared to 1,127 in the same period a year ago and 713 the period before that.

The liquidations are mainly affecting small to medium operators with lower cash reserves.

Originally published as Loved Perth cafe, Slate, closes as rising costs kills cafes and restaurants across Australia