The South Australia hospitality closures that rocked the state in 2024
Crippling costs are a recipe for disaster for Adelaide’s food scene with industry leaders warning it’s going to be a “rough summer”. See the venues lost to crisis.
Lifestyle
Don't miss out on the headlines from Lifestyle. Followed categories will be added to My News.
Rhett Dryburgh had no choice but to say goodbye to the “love of his life”, Semaphore eatery, Sarah’s Sister’s Sustainable Cafe.
The devastated business owner is still coming to terms with the closure of his much-loved vegan venue, which he had operated for four years but had served the local community for almost five decades.
“It’s been incredibly tough, we’ve just been hanging on by our fingertips and unfortunately we just haven’t been able to make it through to the new year,” Mr Dryburgh, 25, said.
“It’s been very upsetting to close what you have been working on. It’s the love of our life. You don’t get up and work everyday unless you love it.”
Mr Dryburgh took over the cafe during the pandemic and battled through some tough times, but said the current cost-of-living crisis, coupled with rising business expenses, left him with no option but to close the doors permanently on December 7.
“It was really out of our hands by the end. It was purely a financial decision, unfortunately it was just not viable anymore,” he said.
SCROLL DOWN FOR THE LIST OF 2024 CLOSURES
Operating expenses, including energy and food costs, rent and insurance premiums, had skyrocketed in the last couple of years, Mr Dryburgh said.
He said the cafe’s electricity and gas bill had risen 100 per cent up to $12,000 per annum.
“It’s just a ridiculous cost increase and we just couldn’t take it anymore,” Mr Dryburgh said.
“We can’t keep passing on the price increases to the customers because we love them and we can’t keep expecting them to foot the bill.”
Mr Dryburgh’s story has been mirrored across the state’s hospitality industry in 2024, with a string of venues, from cafes and restaurants to bars and clubs, shutting their doors for good.
These include longstanding institutions such as Cardone’s at Jetty Rd, Glenelg, and Martini’s on the Parade, in Norwood, to newer establishments like My Lover Cindi, on Pirie St, burger bar chain Cheffy Chelby’s and Port Adelaide nightclub Confession.
Confession owner Shane Hryhorec, who closed his disability-friendly nightclub in April, said people were spending less on a night out than ever before.
“We had one night and it was a free event and a third of the people in the room weren’t paying for anything at all,” Mr Hryhorec said.
“There was a significant drop on the per head spend – about a 40 per cent reduction across three years. It’s sad because people just have less places to go, less live entertainment venues and less options.”
Mr Hryhorec said the dire situation facing hospitality business owners would only get worse, before it gets better.
“I’m seeing a lot of businesses open and they last three months,” he said.
“I hate to not be positive but I do think the next 12 months will be the same, potentially worse.”
Publican Simone Douglas was forced to close the doors on her city cafe, The dob on King William, in May. She still operates the Duke of Brunswick Hotel and the Port Admiral Hotel at Port Adelaide.
“You never want to admit failure but when you’ve thrown everything at it and you’re still losing money, you just have to call it quits,” Ms Douglas said.
“Everyone is just a bit exhausted. We love the industry but it’s been a very tough year and we’ve had to dig in hard, just to stay open.”
The gap between large and small venues will only widen in the future, Ms Douglas said.
“There’s going to be a much bigger divide between those large-scale footprint operators, and those smaller cafes and bars, as owners look to increase profitability,” she said.
“The industry isn’t going anywhere but it’s going to have to evolve and change.”
Mr Hryhorec called on the state government to “do more” to support hospitality businesses, including easy-to-apply for grants, similar to those offered during the pandemic.
“I think that would go a long way, because once businesses close, they stay closed,” he said.
Mr Dryburgh said it’s going to be a “rough summer” for hospitality operators and urged people to support local businesses if they can.
“If businesses can make it through to the new year, I have some hope and optimism that we could see some improvement in the second half of 2025,” he said.
“And an interest-rate cut from the RBA would be a nice present for everyone.”
Australian Hotels Association SA chief executive Anna Moeller said there had been a “perfect storm” of economic crises that had hit the hospitality in the wake of Covid – cost of living, which affected the number of patrons coming through their doors, and cost-of-operating that had seen their bills for facilities, insurance and ingredients skyrocket.
“There’s all these fixed costs that they just can’t change,” said Ms Moeller, who also blamed “overwhelming” regulations and “red tape”.
“I think it was that perfect storm that has seen the industry have an unnaturally high number of closures.”
WHERE ARE THEY NOW: LIFE AFTER HOSPO
Ms Moeller said skills and labour shortages were further devastating hotels and restaurant owners, who were struggling to fill vital roles, particularly chefs and cooks.
“It is incredibly bad,” she said.
“There are some places that cannot open their kitchen every day because they cannot get a cook or a chef. There are regional areas that have got FIFO workers that are cooks and chefs – FIFO is no longer just mining, it’s hospitality.”
She said caps on migration and overseas students and the perception that hospitality was a “job that you did before you started your career” were also recruitment hurdles.
Ms Moeller said the death knell for some restaurants and cafes was the fact that costs deferred during Covid – such as rent and insurance – were now coming due and struggling business owners could not afford them.
“It was like this cliff that they were rapidly approaching,” she said.
“Once the Covid era ended and people could operate again, all of those debts fell due. We could see the cliff coming and we were saying our second wave of Covid won’t be sickness, it will be the closure of all these businesses that lived through but then once everything becomes due … it is disastrous.”
11 VENUES WE LOVED AND LOST IN 2024
Cardone’s
Jetty Rd, Glenelg
After 24 years operating in the same location, owner-operator Nick Cardone was left with no choice but to shut down his restaurant in March, due to the ongoing impact of the pandemic combined with rising business costs.
“It really saddens me. This is my life. Day in, day out. I don’t remember having three days off in a row for a very, very long time,” Mr Cardone told The Advertiser at the time.
“I get emotional about it. I still can’t believe it’s actually closed. It’s really taken a toll on me, it’s been very emotional and overwhelming to be honest.
“As disappointing as it is, it’s a sign of the times.”
Enzo’s Ristorante
Port Rd, Hindmarsh
One of Adelaide’s most iconic Italian restaurants, Enzo’s Ristorante, finally closed its doors in May after 25 years.
The building’s lease was up and the venue’s owners, Enzo and Teresa Fazzari, decided it was the right time to hang up the apron.
“I’ve got very mixed emotions. Sadness in a way, humbled by the response and proud to have achieved 25 years in this restaurant,” said chef Mr Fazzari, 69.
Enzo’s has won multiple awards, including Excellence in Formal Italian Dining in 2017 and 2019 in SA, and was the one of the first Australia restaurants to be awarded the Ospitalita Italiana accreditation by the Italian Government for its authentic Italian dining experience.
Martini’s on the Parade
The Parade, Norwood
Owner and executive chef Larry Piscioneri said the current “uncertain economic climate” left him with little choice but to sell the business after almost two decades.
“It’s the right call to make,” he told The Advertiser.
Mr Piscioneri, 54, said consumer spending had been well down due to the cost of living crisis, and he estimated trade at Martini had fallen almost 50 per cent in the year leading up to its closure in May. Business costs had also surged, he said.
“It’s been frustrating to run a business in the last four years. It’s had its highs and lows. The last year has been the hardest,” he said.
“I have so many loyal customers … but people just don’t have the money to spend on dining out, and the cost of everything has gone up.
“It’s very hard to turn a profit in this climate.”
Fire and Vine
Bevington Rd, Glenunga
Succeeding a dining institution like Cork & Cleaver was never going to be easy but this new restaurant barely got off the ground.
Owner George Melissourgos closed his steak and seafood eatery in June, nine months after he opened, and just a fortnight after a less-than-flattering SA Weekend review.
The review, by respected Adelaide food writer Simon Wilkinson, described lengthy service delays, including an hour wait for entrees.
Mr Melissourgos told The Advertiser staff recruitment was an “ongoing” issue for the venue.
“We are trying to find good, reliable, consistent staff that we can rely on and have on-call if we need them. That’s the biggest thing,” he said at the time.
Paddy Barry’s
Gilles St, Adelaide
The pressures of running a small business while raising a young family led to Jimmy Barry closing his popular city coffee spot.
Mr Barry, who took over the cafe formerly known as Sibling in 2021, said it wasn’t an easy decision but “ultimately, family comes first”.
“After three incredible years, it brings sadness and relief to say we’re shutting our doors in the coming months. A decision that wasn’t easy to make,” he explained in a post on social media.
“Ultimately, family comes first and I want to be the best dad, partner, son, brother and friend I possibly can. With the pressure of small business, I’m finding it hard to be present.”
Known for brewing some of Adelaide’s best coffee, the cafe nestled in Adelaide’s south and named after the owner’s grandad was a hit with locals for years.
North Adelaide Burger Bar
O’Connell St, North Adelaide
Late night eats in North Adelaide will never be the same.
The home of the original AB meal, and a staple of SA’s fast food history for over seven decades, this legendary burger bar shut up shop for good in June.
Its owners announced their decision on social media, revealing that “the current financial climate, rising costs of running the business and increased utility expenses” had made it impossible for them to continue trading.
The post said the tough decision had been made despite their “best efforts” to keep the burger bar’s storied legacy alive.
Cheffy Chelby’s
Morphett Vale and Hallett Cove
Owner-operator Michelle Lowe pulled the pin on her award-winning chain of breakfast burger bars in April, citing rising costs and customers’ reticence to spend for her devastating decision.
It came after she was forced to close her flagship Port Noarlunga eatery when the building it was located in was declared derelict and unsafe by the local council in February 2023.
Ms Lowe said customers simply weren’t spending as much money as in the past – and the figures no longer added up, with soaring food costs meaning a small coffee should practically cost up to $8.
“I’ve taken too many hits. It’s like I’m playing Mortal Kombat and I keep getting killed,” said Ms Lowe, a chef, who launched the business after losing her job at the start of the pandemic.
Folklore Cafe
Mundy St, Port Adelaide
This community favourite overlooking the Port Adelaide River shut its doors permanently in February after almost 10 years of trading.
“It’s with a very heavy heart that I have decided to close Folklore Cafe,” owner Anika Havey said in an emotional Facebook post.
“It’s been an incredible nine years and I feel very lucky to have been here for this long.”
The popular cafe served a range of dishes made from local and sustainable produce.
Ms Havey explained how difficult it was to reach the decision after making strong connections in the community.
Terroir Auburn
Main N Rd, Auburn, Clare Valley
Owners Dan Moss and Annika Parish said the “extremely volatile and uncertain economic future” of the country was a big factor in their decision to close their award-winning restaurant in May.
In an emotional social media post, the couple said political leaders had yet to “fully recognise” the serious issues crippling the state’s hospitality industry.
“We are just simply not willing to carry any debt into the rest of the year, and risk our young family’s future on a game that is impossible to win for small business owners in 2024.
“We won’t be the only ones making this decision this year. Brilliant and very talented operators will be faced with this choice also, and we hope they have the courage to make the right business decision for their families.”
Mr Moss has since joined nearby Skillogalee Estate as their executive head chef.
My Lover Cindi
Pirie St, Adelaide
The venue hosted a farewell weekend at the end of May, with its owner-operators Rachel Hosking and Kate Toone saying the “exorbitant costs” of running a nightclub left them with no other choice but to pull the pin.
“All good things must come to an end. The simple answer is that maintaining the exorbitant costs of a night-time venue has been near impossible for the whole three years and finally at this point we can no longer continue,” they said in a social media post.
It came a few months are they told followers they were facing “extreme” venue challenges in a “vulnerable” Facebook post urging locals to help them “turn things around” by heading out and buying tickets to events if they could.
Ponyboy
Murray Bridge
The yoghurt shop and cafe founded by members of Murray Bridge’s horse-racing community started with a gallop in 2022.
But just weeks before Christmas, they announced they were at the finish line.
“We put our heart and soul into Ponyboy but unfortunately we couldn’t make it work,” the Ponyboy team said at the time.
“There’s no doubt it’s a challenging period for many in the community and we definitely felt that as a small business, particularly in the last 12 months.”
In a post to Facebook, Ponyboy thanked patrons, saying the business had “loved being a part of the Murray Bridge community” and appreciated the support of its “lovely customers”.
Personal reason behind Dannii Minogue’s next move
As she prepares to unveil her latest project, Dannii Minogue has revealed how her close friendships have influenced her – and calls for ‘more representation’ when it comes to sexuality on screen.
Personal reason behind Dannii Minogue’s next move
As she prepares to unveil her latest project, Dannii Minogue has revealed how her close friendships have influenced her – and calls for ‘more representation’ when it comes to sexuality on screen.