Eight staff to lose their jobs as Sydney restaurant closes

A popular Sydney restaurant has broken its silence in the wake of news that it is closing down.

A popular Sydney restaurant has broken its silence in the wake of news that it is closing down.

Last week, news.com.au reported that Japanese gaming restaurant ESC is shutting down permanently at the end of this month, on March 29.

The restaurant, located in Chatswood in Sydney’s north, offered private gaming rooms with PS5s and Nintendo switches.

In a statement to news.com.au, ESC’s business owner said they had no plans to place the company into liquidation.

The owner said there are currently eight staff employed who are all set to lose their jobs when ESC closes its doors for good.

“Staff have been informed in mid February so they would have sufficient time to search for new jobs, and we will continue to provide any support as much as we can during the transition,” the owner said.

“We can tell you frankly and proudly that the business has not owed any employee salary by using our personal funds to keep the business running for the last two months.”

ESC’s owner also noted that there are no outstanding debts to supplier as they have also been paying that out of their own personal funds to keep the business debt-free.

ESC made a splash on Sydney’s food scene.

Eight staff have been impacted.

The owner added that the restaurant and bar was shutting down “partially” because of the economic slowdown hitting many hospitality ventures but also “because of our own inefficacious management that failed to sustain the business”.

“As a retail business owner I have noticed that customers are now more cautious on how to spend their money on dining and entertainment,” she added.

“We did receive quite some feedback regarding the pricing.”

In a message to customers, ESC said they were shutting down the restaurant “with a heavy heart”.

The restaurant offered patrons 25 games on the PS5 and 32 on the Nintendo including Super Smash Bros and Mario Kart.

ESC had a slogan of “Eat, Play, Chill”.

The business had nearly 9000 followers on social media.

It appears that ESC had been in business for less than two years, having launched at the end of 2022.

Its popular menu items included a deluxe sashimi platter, wagyu skewers and a cheesy mashed potato volcano.

When the restaurant first opened, it generated rave reviews.

Food reviewer and influencer The Food Inbox said in 2023: “The food is definitely not what we were expecting – it was pretty fancy! You can order as you go on the iPad, and they’ll deliver it to your room – no need to interrupt your gaming“.

Blogger Sydney Food Boy described ESC as “seriously fantastic” and added “You would be forgiven to think these dishes came out of some upscale dining spot, not the kitchen of a ‘gaming restaurant’”.

The company’s business number has been active since 2014.

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The restaurant’s concept was a gaming den combined with Japanese cuisine.

What a standard gaming room looks like.

The news follows the recent collapse of a popular Oporto in Sydney’s Newtown, with the ATO forcing that business to either pay half a million in back taxes or shut its doors.

Earlier this week, news.com.au reported that popular Sydney pizza chain, Bondi Pizza, was on the brink of collapse.

In another sign of the dire situation facing many hospitality businesses during a cost of living crisis, a beloved Sydney cafe also shut its doors recently, with its owner describing the hospitality industry as “a bit broken”.

Last month, news.com.au reported that popular Sydney nightclub called The Carter had gone into liquidation.

The hospitality sector is one the hardest hit industries in the current economic downturn, alongside the construction sector, which both run on extremely thin margins, making these types of businesses usually the first casualties in a high inflationary environment.

Late last year, arm of major Victorian catering business, Legacy Hospitality Group, went bust in October with debts in excess of $1.7 million.

National restaurant chain Sushi Bay also collapsed in 2023, with its last remaining Sydney, Darwin and Canberra branches ordered to shut down, amid allegations that workers had been underpaid $650,000 over a number of years.

In June, controversial restaurant chain Karen’s Diner went into liquidation with $4.3 million worth of debt.

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