Adelaide’s struggling restaurant strip: Hutt St is shut street
TEARS in his eyes, restaurant owner Nino Castello will close the doors of his restaurant for the final time. Why has trade collapsed so rapidly there are now 21 empty shops on once-thriving Hutt St?
- Vacancy rates improving again on King William Rd
- The new masterplan to revitalise Jetty Rd, Glenelg
- One in five shops along Melbourne St are vacant
TEARS in his eyes, Alfonso’s Continental restaurant owner Nino Castello will close the doors of his Hutt St restaurant for the final time tomorrow.
After 13 years working morning, afternoon and night at the Italian restaurant alongside his parents, high rent has driven him out of business.
Alfonso’s joins a long list of Hutt St eateries and other businesses that have shut in the past year, as more feel the pinch of dwindling foot traffic.
They include Golden Dragon, Latte on Hutt, Milano Cucina, Kenji and Buenos Aires Brasserie.
There are currently 21 shops for rent or lease along the once-popular shopping and dining strip.
“For me, its sad because it’s a family business; there’s more emotions tied to it,” Mr Castello said.
“I’ve lost everything. I’ve got to make money because I’ve got a family to support.
“I’ve lost the house — whatever I had, I’ve lost. I’ve got nothing to fall back on.”
Mr Castello said a “dramatic change in Hutt St” began six years ago, and coincided with a rent hike for his restaurant of about 70 per cent.
As the downturn at his business worsened, he continued to pay everyone but himself and invested whatever money he had left into the business and in a lawyer to fight for a better deal from his landlord.
He attributed poor foot traffic and closures to Adelaide’s slow population growth.
“Melbourne and Sydney, they have the population. People go out on a Monday and Tuesday night and they’ll spend money,” Mr Castello said.
“There’s not enough people in this area for the amount of eateries that are around.”
Queen of Tarts owner Jono, who declined to give his surname, has been on Hutt St for two decades.
“It’s electricity, gas, high rent, high rates that are killing small business,” he said.
“You’ve got to be owner-run. If you’re getting staff in, wages are too high and these small businesses can’t sustain it.”
Traders across inner-city strips including Melbourne St, King William Rd and Unley Rd have also struggled.
Property Council SA executive director Daniel Gannon said economic conditions were tough for both landlords and tenants.
“Office and retail vacancy often tells a story about the state of local markets and precincts, and Hutt St is no different,” he said.
“SA has some of the highest land tax rates in the nation, which unfairly punishes commercial property owners.
“At a time when the state’s unemployment rate is high and investor confidence is low, it’s important that the State Government provides attractive incentives for businesses to invest.”
Hobo Menswear owner Ivan James Deed said most businesses vacating Hutt St were food-based.
“There’s more than usual (shut) at the moment, particularly south of Halifax St. That end is about as vacant as it’s been for a long time but it does peak and trough,” he said.
“It’s nothing to do with the street. If you are a good operator you will do well in food no matter where you are.”
Meal delivery service Sukha Life co-owner Elle Williams, who is opening a health food cafe in Hutt St on October 9, was optimistic the strip was “on the edge of booming”.
“It has amazing coffee, amazing food but for us it doesn’t have that health element which we are going to bring,” Ms Williams said.
“If people are intrigued by your business they will want to come there (and) Hutt St is amazing for that because it’s so accessible.”