Broadbeach dining mecca in the grip of major economic turndown and mass exodus after redevelopment
AT least 10 prominent businesses have been forced to close their doors in the once thriving dining precinct of Broadbeach. Frustrated owners blame high rent and prolonged road closures for the domino effect downfall. So which of your favourite restaurants are shutting up shop for good?
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THE Gold Coast’s dining mecca is in the grip of an economic downturn after a swathe of prominent businesses closed their doors.
At least 10 eateries and retailers have disappeared from the city’s premier restaurant precinct in the past six months, blaming high rents, the prolonged redevelopment of Surf Parade and the Commonwealth Games.
The cruel cocktail has affected trading by 30-70 per cent, says Restaurant Industry Support Gold Coast Association president Glen Day.
“It has been really tough, especially in the four weeks leading up to the Commonwealth Games. It was the quietest time I have known in the 40 years I’ve been here for,” he said.
“Now winter is coming in a period which is normally slower and you’ll see some businesses are using their GST money just to survive.”
On the back of popular bar Onyx announcing its imminent closure, at least three more are expected to shut following the end of next week’s Blues on Broadbeach festival.
The closures have led to calls for the Gold Coast City Council to rethink the Glitter Strip’s tourism strategy and put greater emphasis on dining and food.
Onyx owner Lauren Hyland likened Broadbeach’s plight to that of “Main Beach of four years ago”, when a number of shops closed on the seaside strip of Tedder Ave.
“The only reason it’s pumping again is because they reduced the rent, so people would open there again,” Ms Hyland.
“Now it’s happening in Broadbeach. Broadbeach, as an entertainment precinct, no longer exists.
“We’re frustrated and just sad our business, which has been in our lives for so long, is literally going because of something so far beyond our control.”
Ms Hyland believed the closure of businesses on the street would have a flow-on effect.
“We are one of the busiest restaurants on the strip. When we go there’s going to be a lot of other places that go, too.
“It’ll even affect the surrounding hotels, Airbnb, because if there’s no commercial premises downstairs in operation, why come to an area that’s dead?”
Ms Hyland said businesses pushed to reinvigorate the Broadbeach strip by requesting Surf Parade be turned into a pedestrian mall on weekends with bustling market stalls positioned along the road.
It didn’t happen.
Rumours that Axis Restaurant and Bar would close were shot down by manager Ashley Grant who said she not aware of any plans to cease trade, despite being severely affected by the recent downturn.
“We were extremely affected by the road closures,” she said.
“We lost all our usual Easter weekend trade, and all our normal customer intake as well.
“It was so hot and cold during the Commonwealth Games, but it was one of our worst weeks, we lost a lot of money.
“The Games organisers scared everyone away and with the closures, people couldn’t even tell we were open.
Ms Grant said the restaurant hired “five or six” more staff members, double their usual staff, during Commonwealth Games to cater for the expected diner numbers but were sorely disappointed.
“I had to let go of half of them because we just went getting customers in,” she said.
Bootleg Juice Bar operated in Broadbeach for three years and closed its doors on April 15, the final day of the Commonwealth Games.
Owner Anthony Jenner said the downturn began in 2016 when the Gold Coast City Council began its protracted nine-month redevelopment and upgrade of Surf Parade, robbing local businesses of their customer base.
The $1 million revamp included the removal of some on-street carparks and streetscaping to beautify the area ahead of the Commonwealth Games. The project ultimately ran months overschedule and $500,000 over budget.
“You could have held anything there, you could have held the Commonwealth Games opening ceremony there and nothing would have happened — there’s nobody around anymore, they left the area,” Mr Jenner said.
“In the short term there’s nothing you can do it’s going to take years to fix.
“We need to reinvent tourism here so it is not just about Surfers Paradise and the theme parks.”
Foreign and domestic tourism expenditure in Australia totalled $130 billion in 2015-16, with retail spending accounted for 39.7 per cent, including $36.1 billion on food and $15.6 billion on non-food retailing.
A Tourism Australia “consumer demand” research study in June last year showed 38 per cent of people rate “good food, wine, local cuisine and produce” as an important factor for destination choice.
Leading property industry figure Max Christmas said the Gold Coast was facing the “worst economy I have seen in 25 years”.
“The real picture is that the whole city suffered dramatically with the downturn from Easter and the Commonwealth Games and I think it is the worst we have ever had, from Nerang in the west to Surfers Paradise and we are going to be suffering the whole year,” he said.
“I own shops all over the Gold Coast and all of mine have been affected. This will ripple right through the economy.
“Tedder Ave has been down for five years and Broadbeach is now facing that same problem.
“Change won’t happen overnight for things to turn around but this year you will see a terrific number of closures.”
The struggle facing Broadbeach business comes despite a multi-billion influx of development to the area in the past year.
The Star, which recently completed construction of its boutique The Darling tower, will turn the first sod of its $400 million hotel and unit tower in July.
It has already gained approval to build other towers of 65, 74 and 54 storeys.
Other developments proposed are the $100 million Class Broadbeach and $200 million Signature Broadbeach.
Council puts $2.7 million in funding towards Broadbeach Alliance annually to promote the area and run events.
Broadbeach Alliance chief executive Jan McCormack said she a turnaround was “just a matter of time”.
“People are coming into Broadbeach but I don’t know why they are struggling,” she said.
“Easter and the Commonwealth Games was a struggle for everyone but (Broadbeach traders) are no different from a heck of a lot of other people who were caught short.
“It’s sad but there’s not much that can be done. There is far more competition now across the city as well as within Broadbeach. A turnaround is just a matter of time.”
Ms McCormack said 12,000 people came through Broadbeach daily, with numbers increasing during special events. About 40,000 people visited for the Supanova convention and 250,000 to festivals and events across the calendar.
Koi owner Patrick Gennari said other businesses needed to find ways of refreshing in the wake of increased competition.
“Nobody is putting money into renovations,” he said. “They expect people to come simply because the doors are open while I renovate every two years so it always looks new. You have to spend money to make money.
“We need good restaurants in here because it brings the street alive, and the less there are the worse it makes it for everyone.
“You want to be associated with people running good restaurants because it makes the area better.”
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