Tiny detail on rental agreement sparks demise of Cheffy Chelby’s, costing owner Michelle Lowe ‘millions’

The owner of an award-winning chain of breakfast burger bars claims she’s facing financial ruin – sparked by a small detail on her rental agreement.

Michelle Lowe claims she’s facing financial ruin in part due to a clause in her rental agreement. Picture: Naomi Jellicoe

The owner of an award-winning chain of breakfast burger bars claims she’s facing financial ruin, in part due to a clause in her rental agreement.

Michelle Lowe established Cheffy Chelby’s during the Covid-19 pandemic in 2020.

A chef by trade, Ms Lowe decided to venture out on her own – initially trading out of a trailer at Seaford.

But the business grew, and before long she established her first bricks and mortar store in Port Noarlunga.

And that, she said, is when the trouble began.

“I rented a 100-year-old property, but the contract said the owner didn’t guarantee it was fit for occupancy,” she said.

While Ms Lowe, who was named Young Achiever of the Year in the 2022 Restaurant and Catering Awards, understood the age and condition of the building meant it was likely to be demolished eventually, she assumed it was “safe” to operate out of for the duration of her five-year rental agreement.

But after she had been at the site for only a year, an emergency order was issued by Onkaparinga Council that required the building be vacated for repairs.

It has since been demolished.

Michelle Lowe at the site of her former business. Picture: Naomi Jellicoe

Cheffy Chelby’s when it opened in Port Noarlunga in 2020. Picture: Tom Huntley

“We had water damage from a storm,” she said.

“When (builders) went up into the roof space, they found the water damage was there because there were buckets in the roof space that overflowed.

“Not only that, but they saw there were pieces of furniture that were propping up the beams.

“Some were held with zip ties.”

Michelle Lowe claims buckets were discovered in the roof of a building she leased. Picture: Supplied

She also claims zip ties and furniture were used to prop up broken roof beams. Picture: Supplied

Ms Lowe said after the building was condemned by the council, she was given just 48 hours to vacate.

Despite being unable to trade at the site, Ms Lowe said her costs continued – including having to pay staff full-time wages – so she decided to get legal advice if she was eligible for compensation.

“I went to my lawyer (with my rental agreement) and asked, ‘can you have a look at this?’

“He was like, ‘there’s this thing in your lease that says it doesn’t guarantee it’s fit for occupancy’.”

The clause meant Ms Lowe’s landlord had no obligation to compensate her in any way.

Michelle Lowe at Cheffy Chelby’s in Port Noarlunga in 2020. Picture: Tom Huntley

The breakfast burger chain, which also had stores at Christies Beach and Hallett Cove Shopping Centre, was known for her signature tiger rolls. Picture: Tom Huntley

Despite trying to operate her business from new venues at Christies Beach and Hallett Cove Shopping Centre, Ms Lowe said she never was able to recover and she closed her chain in April this year.

“My company was trading well,” she said.

“Port Noarlunga was where I had decided to place my business … based on location. My five-year plan was mapped around it.

“Now it’s a total loss – close to millions,” she said.

Ms Lowe has since taken her fight for compensation to the Commissioner for small business, but after repeated calls for help they have so far been unable to resolve the issue.

She is now looking for other business owners to join her in a class action she intends to launch.

“Most small business owners are just people who are trying to chase their passion and there would be others that would have faced similar things.”

She has also established business support group We Are Better Together to support owners and to call for “more responsibility on landlords and councils that buildings need to be safe for their tenants”.

“I feel like I’ve learnt enough to make changes for everyone else.”

A spokesman for the Attorney-General’s Department said the matter was with the Small Business Commissioner.

“The Commissioner is unable to comment on matters while they are under consideration,” he said.

The property’s leasing agent declined to comment.

Originally published as Tiny detail on rental agreement sparks demise of Cheffy Chelby’s, costing owner Michelle Lowe ‘millions’