Coronavirus costs Cha Cha Char owner John Kilroy $1.5 million

The owner of one of Brisbane’s most celebrated restaurants – a favourite of international celebrities and the city’s elite alike – is at war with his landlord after losing millions from COVID-19. If the situation can’t be resolved, he says he will be forced to sell up.

ONE of Queensland’s most iconic restaurants is set to be sold off in a bombshell for the industry as its owner faces a devastating $1.5 million loss from coronavirus restrictions.

Top restaurateur John Kilroy revealed exclusively to The Courier-Mail he was considering selling his steak institution of almost 30 years, Cha Cha Char, which has become famous for its river views and top-notch beef.

“I started it 27 years ago, might be time for new blood,” he said.

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The potential sale is one of the biggest shocks yet for the hospitality industry, which is facing conditions worse than in the peak of the Global Financial Crisis with diner numbers restricted at venues and community fear over the pandemic.

Owner John Kilroy is considering selling his iconic steak restaurant Cha Cha Char at Eagle Street Pier, Brisbane. Picture AAP/David Clark

The Eagle Street Pier restaurant has long been a favourite with sporting stars, celebrities including Lady Gaga and Brisbane’s big-spending corporate crowd, paying over $100 for a steak and more than $1000 for wines from Kilroy’s reserve cellar.

The cellar boasts premium Australian bottles such as Henschke Hill of Grace and vintage Penfolds Grange.

Mr Kilroy said he was contemplating selling the restaurant “as it would release a lot of stress in my life” after being financially smashed by the coronavirus lockdowns.

Restaurateur John Kilroy says he’s lost $1.5 million with coronavirus.

The restaurateur, who also owns fellow CBD icons Il Centro and Jellyfish, estimates he has lost $1.5 million between having to throw out expensive premium produce including Wagyu beef and seafood when lockdowns kicked in, staff costs for up to 100 employees and overheads.

His three venues are currently closed and he said they would stay that way until at least the end of August as he couldn’t afford to reopen with his rent at each of his Eagle Street Pier venues costing $2000 per day.

“I’d be doing 50 [covers] a day, I used to do 180 a day,” he said. “I’d have to charge everyone who came in $400-$500.”

Steak from iconic restaurant Cha Cha Char in Eagle Street Pier

Mr Kilroy was having a “sympathy meeting” with his Eagle Street Pier landlord Dexus next week about a rent relaxation or money for a new fit-out to redesign Cha Cha Char and Il Centro so diners could remain 1.5m apart as per COVID-19 restrictions, while accommodating maximum guests for the floor space.

He was also contemplating changing his high end offerings to something more affordable.

“The spend has changed,” he said. “I think that up-market stuff isn’t going to be what people want, so I’m just watching [the market].”

The threat of another complete lockdown, similar to what’s happened in Melbourne, also has the restaurateur anxious to reopen.

“I’d probably lose $1.5 million again and there goes all my super,” he said. “I can’t afford to be losing that much money.”

Originally published as Coronavirus costs Cha Cha Char owner John Kilroy $1.5 million