Victoria is famous for its character pubs, but many are battling to survive and some can’t hold on

A Melbourne pub that said it would have to charge $20 for a pint and $50 for a counter meal to survive has shut its doors for good — and it’s far from the only hotel doing it tough in Victoria.

A popular Melbourne pub that revealed it would need to charge $20 for a pint and $50 for a counter meal in order to survive in cash-strapped Victoria has gone into liquidation.

Abbotsford’s historic Carringbush Hotel closed its doors permanently on Sunday June 2, citing “the current financial pinch”, just a few years after undergoing a makeover.

An ASIC notice reveals a decision was made on June 4 to wind up the business and appoint Mathew Gollant as the liquidator.

But the Carringbush is far from the only hotel in the state which has closed, gone bust or is just barely holding on, as the hospitality industry battles soaring ingredient and operation costs, rents and taxes, amid a cost of living crisis that is seeing Victorians pinch their pennies to meet their mortgages.

Administrators have now been appointed to the Carringbush. Picture: Ian Currie

Abbotsford’s Carringbush Hotel in 1985.

Drinkers at the Carringbush Hotel bar in 1988.

The Herald Sun has learnt a 168-year-old country pub — one of the oldest in the state — is also facing financial difficulty, having just appointed a restructuring practitioner.

Such an expert is appointed when a business is teetering on the brink of insolvency and works work the owners to come up with a new debt payment and business plan.

On June 11 alone, ASIC detailed five company liquidation notices in Victoria — and there have been nearly 50 this month so far.

The Carringbush and other Victorian hospitality venues were among them.

President of the Australian Hotels Association (AHA) Victoria, David Canny, said in a recent message to members that potential restrictions on natural gas use in commercial kitchens, liquor excise and fringe benefits tax were among the major issues facing pubs.

He called for a 12 month freeze on any increase to the liquor excise “to alleviate the financial burden” on publicans, so they would not be forced to pass on the extra cost to the drinking public — which would act as “a further disincentive for people to visit their local”.

(AHA) Victoria president and Ballarat Red Lion Hotel publican, David Canny. Picture: David Caird

Mr Canny also called for a more streamlined visa process, to help pubs employ refugees for labour.

A second generation hotelier, Mr Canny has been the licensee at Ballarat’s Red Lion Hotel since 1995 and is director of the Montague Hotel in South Melbourne.

In the lead-up to its closure, Carringbush Hotel co-founder Liam Matthews said the cost of operating any hospitality business in Victoria was now “horrendous”.

Wage costs had jumped eight per cent, energy bills soared and pubs slugged $10 per keg for vital beer deliveries, he said.

Mr Matthews said he had calculated the only way to stay afloat would have been to raise the pub’s most popular beer Mountain Goat lager from $15 a pint to $20, which was not an option.

The Bendigo Hotel in Collingwood shut in March amid calls for Prime Minister “DJ Albo” to step in and help Melbourne’s struggling live music industry.

The Johnston St pub, built in 1911, said it was closing because of financial pressures, including a 300 per cent spike in insurance costs.

Publican Guy Palermo said the “Bendi” had never recovered from the pandemic despite a fundraising effort in 2021 to keep the doors open.

Rent had gone up 30 per cent, insurance was 300 per cent more, while sales had dipped 40 per cent, he said.

And in February this year Lexton locals rallied to try and save the country Pyrenees Hotel, which suddenly shut its doors on January 12 leaving residents nowhere to have a beer and meal.

The historic Lexton pub dates back to 1859.

In August last year iconic Brighton drinking spot The Marine Hotel announced it’s closure, citing rising cost of living among the reasons.

Locals have rallied to try and save Lexton’s Pyrenees Hotel. Photo: James Braszell

Pubgoers at the Pyrenees. Photo: James Braszell

Collingwood’s Nathan Murphy and Brayden Maynard enjoy a parmie at The Marine Hotel, before it closed. Picture: Nicki Connolly

The Marine Hotel had been serving up brews to customers since it first opened in 1856.

“It is with heavy hearts that we announce the closure of the Marine Hotel as of today,” a Marine Hotel Brighton social post read.

“Unfortunately in the face of continual neighbour complaints, ongoing council challenges and escalating costs led by extraordinary rent increases, we’ve had to make the tough decision to end our tenure.”

Victorian distillers have warned the biannual rise in Australia’s alcohol tax is forcing them to consider moving their businesses overseas.

Brewers Association of Australia chief executive John Preston said in January the latest increase was not just bad news for distillers but also for beer drinkers.

“In many venues, people are paying over $15 for a pint. This is a huge amount considering how tight the family budget is,” he said.

Spirits & Cocktails Australia chief executive Greg Holland said the tax was fuelling inflation and making spirits unaffordable for consumers.

Mr Holland said government revenue from the tax was forecast to fall this year, with the price of cocktails such as a negroni set to rise $2 to $24 compared to last year.

“Continued increases would be nonsensical,” he said.

“Consumers, manufacturers and the government all lose out to this inefficient tax.”