Popular burger joint abruptly closes
A restaurant that told customers to “fear not” has been hit by trouble sweeping the hospitality sector.
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A burger joint that has been popular for its cheap eats status has abruptly closed just 15 months after it opened.
Signage posted on the Sydney restaurants door revealed the landlord had taken back possession of the premises.
“Any forced entry will be deemed as trespassing and reported to the local authorities,” the ominous sign read.
The burger joint was based on Newtown’s popular King St in Sydney’s inner west and was called Anonymous Milkbar.
Five weeks ago the restaurant had told customers on Instagram: “To our loyal customers, due to some urgent matters, our Newtown venue will be closed until further notice. But fear not! We will be opening back up soon.”
But the hospitality outfit is now permanently closed with a link to its website bringing up an error message.
It comes after a chilling warning was issued in May that one in 13 hospitality businesses across Australia is facing going bust as the industry grapples with the crippling cost of living crisis.
New data has revealed the hospitality industry is most vulnerable to current economic conditions as consumers disposable income dries up and businesses are hit by huge prices increases.
Aside from the consumer crunch, businesses have also struggled to manage cost pressures, such as power prices and cost of ingredients, as well as labour shortages, CreditorWatch noted.
It found smaller hospitality businesses were bearing the brunt of the economic crisis as they tend to have smaller cash reserves, while larger outfits are able to take measures to cut costs such as laying off staff.
Conditions will get worse for businesses in the hospitality sector before they get better, warned CreditorWatch chief executive Patrick Coghlan.
“Hospitality is a high risk industry even in boom times unfortunately. It’s hard for hospitality businesses to pass on price rises compared to those in most other sectors. Consumers can easily ‘trade down’ to a cheaper venue or just eat at home,” Mr Coghlan told news.com.au.
Many Australian hospitality businesses have been succumbing to tough economic conditions this year.
This includes hospitality group BCN Events Group which collapsed into liquidation in May, with all seven of its business ceasing to trade immediately while 90 staff were affected.
The Botswana Butchery chain, which operated as a high-end steak restaurant across three cities, went bust with debts of more than $23 million and more than 200 staff sacked.
Another hospitality player also shut down after fast food chain Lord of the Fries appeared to have the landlord repossess the property.
Earlier this year, after 18 years in business, Asian fusion restaurant Gingerboy shut down also blaming “market pressures since Covid lockdowns”, while another Melbourne outfit Epocha also blamed tough economic conditions for its closure this month.
TV chef Adrian Richardson announced his restaurant La Luna would serve its last meals on August 3, admitting Melbourne was a “tough city” in which to do business.
Originally published as Popular burger joint abruptly closes
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