Popular Australian steakhouse Hog’s Breath Cafe shuts its doors in two NSW locations

Two franchises of a popular restaurant chain have stacked the chairs and switched off the fryers one last time, after going bankrupt.

Two Hog's Breath cafes have closed in NSW. Picture: Facebook / Hog's Breath Cafe Tuggerah

The repercussions of the pandemic and rising cost of living has claimed another victim in the hospitality industry, forcing an iconic Australian restaurant to shut its doors in two locations across NSW.

Hog’s Breath Cafe in Tuggerah and Coffs Harbour reportedly entered liquidation on Friday, after “temporarily” closing the venues for some time in the lead up to going bust.

It’s understood Tuggerah‘s “more than a steakhouse” store crippled under the pressure of Covid-19 restrictions and failed to bounce back from such a devastating time in the sector.

Cost of living pressures, rising rent, reduced customer interest and an inability to find suitable staff further contributed to its downfall.

The store published on its social media that it was “temporarily closed” on May 22, with locals later reporting that they saw the store’s furniture and cooking facilities up for sale.

The steakhouse restaurants are known for their juicy steaks and curly fries. Picture: @hogsbreathcafe / Instagram

The restaurant is now in the hands of liquidator Steve Naidenov from Aston Chace Group, who told The Daily Telegraph he had been advised by the company’s director that increased supplier costs had also taken a toll on the business.

Early investigations by Mr Naidenov suggest at least $740,000 is owed to an array of secured creditors, unsecured creditors and staff in terms of employee entitlements, with claims expected to rise.

As for the Coffs Harbour franchise, it’s unclear what led to its closure with news.com.au contacting the restaurants’ head office for comment. Aston Chance Group has also been approached for comment.

Renowned for their succulent meaty dishes and curly fries, the closures of the Tuggerah and Coffs Harbour eateries leaves only seven sites remaining across NSW.

The stores still trading across the state are located in St Marys, Wagga Wagga, Orange, Penrith, Port Macquarie, Nelson Bay and Tamworth.

The two NSW venues are the latest in a string of Hog’s Breath Cafe franchises from around the country to close in recent years.

Hogs Breath Cafe founder and company director Don Algie at Airlie Beach venue. Picture: Supplied

Only 33 stores exist across the country. Picture: @hogsbreathcafe / Instagram

Co-founders Don Algie and Ginger White kicked off the business by launching their flagship store in Airlie Beach in 1989, before a second venue was opened two years later in Mooloolaba.

About six years ago, the restaurant chain had more than 80 outlets nationwide, with that figure almost halving to just 47 stores in 2021.

In 2019, about a dozen stores closed their doors after their owners declared bankruptcy or lost valuable assets.

Former Western Australia franchisee Desmond Francois told news.com.au that year “hog’s-specific” problems led to his venue’s downfall, forcing him to declare bankruptcy.

He claimed struggling franchisees had approached the owners to ask for temporary royalty discounts to boost their cashflow, but the request was denied as the company “cannot afford it”.

A string of franchises have closed in recent years due to money struggles. Picture: @hogsbreathcafe / Instagram

Former CEO Ross Worth disputed the claim, arguing it was the “toughest environment we’ve seen in our 30-year history”.

“To say that restaurant closures can’t be blamed on a downturn in the economy is contrary to every report that I’ve read over the past 18 months,” he said.

“In addition to a decrease in spending, we’ve also had to adapt to completely new customer eating habits with the arrival of food delivery services and meal kits.

“We are also experiencing increases in operational costs with rising wages, raw food costs, rent and electricity.”

Mr Worth later departed the company in February 2020, after another company he directed – which also ran several Hog’s Breath Cafes – went bankrupt, owing more than $1 million in debt.

Several more stores shut following his departure, with venues in Palmerston, Carindale, Albury and Canberra Civic closing between December 2020 and February 2021.

Now, according to its website’s location finder, only 33 stores exist, with 50 per cent of those stores situated in Queensland and the remaining scattered around the country.

The recent closure of Tuggerah and Coffs Harbour has left local Hog’s Breath fans devastated, with many taking to Facebook to mourn the loss of the beloved family restaurant.

“No, we wanted to go there for dinner in a couple of weeks,” one customer commented.

A second customer reminisced: “Awe the memories, I love that place.”

“Don’t be closed for too long, you know how I love my schnitzel,” a third said.

Originally published as Popular Australian steakhouse Hog’s Breath Cafe shuts its doors in two NSW locations