Zarraffa’s closure: High shopping centre rents blamed
News of the closure of Zarraffa’s in several Gold Coast shopping centres has disappointed fans of the coffee chain, amid fears more stores will close because of high rents.
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NEWS that Zarraffa’s coffee shops have closed in shopping centres across the Gold Coast has been met with dismay, amid fears that more stores could be forced to close amid a grim retail climate.
Zarraffa’s stores at Westfield Helensvale, Pacific Fair and Harbour Town have all closed as the Gold Coast-founded company switches its focus to its drive-through outlets.
Bulletin readers disappointed the closures were quick to point the blame at high rents demanded by shopping centres.
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“This is so sad,” wrote Lyn McCarthy. “People pay so much money for these franchises. The shopping centres rents are outrageous.”
Bianca Marie Millward agreed.
“It’s because the centres were hiking the rent up on them,” she wrote. “In this hard enough time, they just couldn’t afford it. I just spoke to one of the managers at another store - it’s sad.”
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A cafe owner, Toula Scott, said businesses across the Gold Coast have been doing it tough.
“I own cafes and know how tough it’s been for everyone this year,’ she said. “I feel for the franchise operators, they will be the losers here.”
A source said Zarraffa’s was moving away from stores without drive-through offerings “because they don’t make as much from them because the overheads are much higher”.
Zarraffa’s Coffee CEO Marnie Sheldon said a “small number of Gold Coast stores” had recently closed due to the effects of the current retail climate and the ending of leases.
“Zarraffa’s Coffee has always pursued drive-through convenience but will continue to operate stores in centres where it makes financial sense for the brand and the franchisees,” she said. “Overall, the robust nature of the drive-through model has sustained turnover during this period.”
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Zarraffa’s was founded on the Gold Coast by Kenton and Rachel Campbell in 1996.
It once boasted more than 80 locations across Queensland, Western Australia and New South Wales.
It now has 75 stores Australia-wide, with 20 on the Gold Coast and 49 more across Queensland.
Originally published as Zarraffa’s closure: High shopping centre rents blamed