Major bakery is first to close doors on King William Rd due to $15.5m road upgrade
The owner of a popular bakery chain says he is the first victim of the $15.5 million King William Rd upgrade but doubts he will be the last.
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First it was Red Door and now a second major baking group has left King William Rd — this time blaming the $15.5 million roadworks project
Dulwich Bakery owner Wayne Duffy says the start of the nine-month roadworks project coupled with stagnant trade was the final straw that had forced the closure of his Hyde Park outlet.
“This closure will dint my business overall, but I’ve spoken to sole operators who believe this project will devastate them,” Mr Duffy said.
“The only ones that will survive are the ones who will work very long hours and don’t pay themselves a proper wage.”
He was critical of Unley Council’s timing with the road upgrade and its lack of action on “meaningful financial assistance to appease traders”.
“Whether we traded or whether we closed we were losing the same amount of money and the roadworks just made it an easy decision,” he said.
Mr Duffy opened his first bakery 16 years ago, followed by nine other outlets.
He said as a respected businessman with three stores in the Unley area, including at Malvern and in the Unley Shopping Centre, he expected someone from the council to contact him.
“I’ve had no direct contact with council and they haven’t responded to some emails,” he said.
“I’m really disappointed Unley decided they are going to do this upgrade regardless and were not going to assist traders with rate relief …
“Everyone knows the road is not trading well and this is a much tougher time in retail than during the world financial crisis (2008).
“When I took on the lease two years ago I thought it was time for Hyde Park to begin to improve — but it has continued to decline.”
The Advertiser understands a significant number of businesses on the road operate on a month by month leasing arrangement.
Two prominent business owners have stated off the record they don’t expect to last on the shopping strip beyond winter.
“We thought when Red Door Bakery closed (September 2018) we would have increased trade and it just hasn’t happened,” Mr Duffy said.
“This is my first failure, sadly, but nine out of 10 still ain’t bad.”
Mr Duffy said his attempts to negotiate with his landlord for rent relief had been rejected.
With three years left on a five-year lease he will try to sublease the property and will offer a “sweetheart deal” for the nine month duration of the roadworks.
The opening of a new shop at Mount Barker, fitted out from the Hyde Park business, will see his company return to 10 bakeries, with a production factory at Beverly.
“Mount Barker is a growing town and we’re in a Foodland strip where all traders have had a double digit boost in trading in the past 12 months,” he said.
“This venture has cost me a lot of money and I won’t be going back (to King William Rd) ever. It’s going to take an awful lot to get the people back.
“Once people go to Burnside shopping centre which is the obvious competition why would they come back to Hyde Park.”
Unley chief executive Peter Tsokas said his council had been informed the Dulwich Bakery was closing prior to the road closures.
“We understand the business was listed for sale some six months ago,” Mr Tsokas said.
“We are sad to hear of any business closing in the Unley Council area and wish Mr Duffy all the best with future endeavours, understanding this is a difficult and stressful decision to make.
“One-on-one visits have occurred with businesses leading up the works, including speaking onsite with the manager of (the) Dulwich Bakery and visits will continue during the works program.”
Mr Tsokas said a council survey had shown a 90 per cent occupancy on King William Rd and that they were working with landlords and the King William Road Trader Association on ways to attract businesses to the area.
“Several great new traders are due to move in including Mr Potato (baked potato store) in the coming weeks and JoyBird (chicken shop) later in the year,” he said.
Details on the consultation process and the upgrade schedule can be found here.