‘Really tough time’ as beloved venue collapses

Difficult trading conditions in the hospitality sector have struck again, with the collapse of another popular restaurant.

Tough trading conditions in the hospitality sector have struck again, with the collapse of another popular restaurant resulting on the loss of 15 jobs.

Mexican restaurant Checho’s, in Sydney’s outer western suburb of Penrith, closed its doors on Sunday, with the directors putting the company into liquidation yesterday.

Checho’s had traded in the suburb since October 2020.

In an announcement on the company’s Instagram page on Saturday, the company’s directors, James Crowe, Melissa Kingston and Aaron Carrasco blamed tough hospitality trading conditions for the restaurant’s demise.

News.com.au contacted the directors for comment.

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Mexican restaurant Checho’s traded for four years in the outer western Sydney suburb of Penrith.

“We regret to inform you all that this will be the last weekend of operations for the Checho’s team in our home on High St.”

“It’s been an incredible four years at the heart of this community and we cannot thank every single one of our loyal customers enough for your support.”

“It’s been a hell of a ride and we’re so proud of what we’ve been able to create.”

“This being said, is a really tough time for hospitality and our only parting wish is that you guys continue to support local restaurants, cafes and bars.”

“There are so many incredible operators and businesses hurting and can’t get through this period without you.”

Checho’s Penrith Pty Ltd is owned by the Cinco Hombres Hospitality Group.

Chad Rapsey, from Rapsey Griffiths Turnaround + Advisory, is overseeing the liquidation.

In an email to news.com.au, the liquidators said it was too early to comment on the reasons behind the collapse.

However they said the company had $704,000 in debts at the time of its collapse, with the Australian Taxation Office (ATO) the major creditor.

Staff are also owed an undisclosed sum of superannuation contributions.

The business took to Instagram to announce its closure.

Customers took to social media to express their disappointment at the closure:

“This is so sad! We love your restaurant and it always seems busy!” one wrote.

“It is definitely a hard time at the moment for all hospitality venues,” another customer commented. “Very sad to see you guys go.”

“You will be so missed. I will always remember my birthday in lockdown we had your take home dinners and it made my day so much brighter,” wrote another fan.

“This is extremely sad news. There isn’t and never will be another place like it. Such a great venue,” wrote another customer.

But some customers also questioned why the business continued to sell gift vouchers in the lead up to its closure and take bookings for dates beyond its final trading day.

“Can I ask the date as we have a gift voucher and I know others who do also

I also have a gift voucher – what will happen with this?” one customer asked on Instagram.

“What will happen with those that have gift cards from Christmas to use?” questioned another.

“Why did you let me make a booking then for a party of 12 in April?” one unhappy customer wrote.

The closure of Penrith’s Checho’s came as a shock to its customer, one of whom said it “always seems busy”.

The news follows the recent closure of a much-loved Sydney cafe, Cornersmiths, at the end of February after 12 years of trading.

Owner Alex Elliot-Howery said that the venue was “simply not profitable” and described the hospitality industry as “a bit broken”.

This financial year, hospitality insolvencies are up 53 per cent and new statistics from the CreditorWatch Business Risk Index for February show that businesses in the food and beverage services sector remain the most at risk of business failure “by a considerable margin” with Western Sydney business at highest risk of failure.

In an exclusive interview with news.com.au last year, Mastercard’s chief economist, Asia Pacific, David Mann forecast that restaurants were likely to encounter tough trading conditions in 2024.

Mr Mann said that while cost of living pressures would continue to curb overall spending, there was also evidence that Aussies would redirect their discretionary spending away from services and back towards buying goods.

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Originally published as ‘Really tough time’ as beloved venue collapses