A Melbourne dining stalwart has become a high-profile addition to the city’s mounting number of restaurants closing their doors as soaring business costs and tighter spending begin to bite.

At least 15 restaurants, cafes and bars have closed in the metropolitan area since September, and the situation is similar in regional Victoria.

Gingerboy, on Crossley Street in the CBD, appointed liquidators on Monday, after its owners tried to sell the 18-year-old mod-Asian restaurant, which was a regular recipient of Good Food Guide hats in the late noughties.

“Part of the reason for closing is because we couldn’t run it as a quality operation any more,” says chef-owner Teage Ezard. “We didn’t want to cut corners or reduce staff too much.”

He says he felt a turning point in the past two to three months due to increased expenses, including on wages and alcohol.

“It was a perfect storm, with prices going up and patronage going down,” Ezard says.

Quieter dining rooms are never a restaurant owner’s friend. But it gets particularly untenable when basic overheads – such as electricity and produce – have skyrocketed. Gas bills for businesses in Victoria are up 30 per cent.

The Restaurant and Catering Association estimated that only a fifth of businesses in 2021 were making the industry-standard 10 per cent profit.

“We looked at staying open and increasing prices, but then it wasn’t fair to the consumer,” Ezard says. “Now that we’re closed, I can honestly say we should have raised our prices.”

Consumers are pulling back on discretionary spending as bills and other basics chew up their money. Spending on essentials went up 5.6 per cent in January, according to the Australian Bureau of Statistics, while extras like going out for dinner remained flat.

The list of restaurants, cafes and bars closing their doors is steadily building. In this financial year, there are already 73 more hospitality businesses that have entered external administration, compared with the full financial year for 2022-23.

“It was a perfect storm, with prices going up and patronage going down.”

Teage Ezard, Gingerboy

“It’s brutal,” Ezard says of the industry at present.

In regional Victoria, industry figures cite tax increases, holding debt from COVID-19, floods, insurance costs and more as contributing factors to a litany of closures in recent weeks.

Melbourne’s restaurant closures

Here is a snapshot of the venues that are among the most recent closures in the city and suburbs.

Gingerboy, Melbourne

Eighteen years of son-in-law eggs and pandan coladas earned Gingerboy a spot on the firm favourite list of many Melbourne diners and out-of-town visitors. Loved for its laneway location, sparkly fit-out and approachable take on South-East Asian and East Asian cooking, it also earned a string of Good Food Guide hats after opening in 2006.

Willow Cafe, Kingsville

“Times are tough and it has affected our bottom line too much for too long.” The parting words of this reliable western suburbs cafe summed up the feeling of many in the industry, and were met with an outpouring of messages from locals expressing their appreciation for their local cafe. The owners also included a call to support other neighbourhood businesses.

Ichi Ni, St Kilda

When this izakaya opened, it was necessary to explain what edamame and yakitori are. After 15 years of living in the shadow of the Hotel Esplanade, serving countless tempura prawns, Ichi Ni was finally swallowed in February by its neighbour, now owned by Australian Venue Co.

Smithward, Fitzroy

A pocket rocket pouring Victorian wines and serving anchovies with crisps, raclette and other small plates, this wine bar shut its doors in January, citing future development plans as the cause. A six-storey office building has been approved for construction. Smithward’s owners are taking a short break before they search for a new home for their business.

Bar Savarin, Cheltenham

An Age Good Food Guide favourite, endorsed as a critics’ pick for two years running, this wine bar in an industrial pocket called time in late 2023. Praised for showcasing its owners’ personality, French-inspired food and a youthful drinks list, it’s been replaced by Robin’s Deli, another addition to Melbourne’s venue du jour, the sandwich shop.

Ascot Food and Wine, Ascot Vale

Licensing delays, lockdowns, a fire: the list of hurdles in going from cafe to thriving nighttime venue was long for Ascot Food and Wine, and stretched over many years. And then the site was earmarked for development and a lease renewal was off the cards, prompting its owners to shut in January. Part-owner and chef Dave Stewart is still considering his next move.

Par Bar, Fitzroy

This inventive bar, which wanted us to think of cocktails more like wine, shut in February. Its announcement spoke of “one of the largest and fulfilling learning curves of our lives” but also mentioned finding a new home for Par. Until then, pop-ups are happening, including one in Canberra last month.

Wolfe & Molone, Bentleigh

A wine bar with a unique approach, switching cuisines as different chefs passed through its kitchen, Wolfe & Molone served Brazilian, Trinidadian and Middle Eastern menus in its seven years of existence. Owner Tanya Hanouch asked the public to support local, family-run businesses when she announced the closure in December.

Oko, Fitzroy

This 70-seat restaurant, opened by mental health advocate and front-of-house pro Sebastian Pasinetti with his mother, fell victim to the same cost pressures as many other businesses. It closed at the end of 2023. The focus now is on running Oko Rooftop and Cafe, also in Fitzroy. At night, it flips into Sydney Nigerian restaurant Little Lagos.

Little Andorra, Carlton North

This pretty corner wine bar served small plates drawing on Mediterranean, Middle Eastern and even Japanese flavours, as well as hosting regular roaming chefs for one-off dinners and kitchen takeovers. Chef Mertcan Dogusgen is now cooking at Noisy Ritual in Brunswick East, and Brico has moved into the former Andorra site.

Copper Pot, Seddon

The owners of this Euro-inspired restaurant, recipient of a Good Food Guide hat in 2016, chose to close the business in September and focus on their young family. Chef Ashley Davis is now involved in The Victoria Hotel in the same neighbourhood.

Babajan, Carlton North and city

A tiny but mighty flag-bearer for vibrant Middle Eastern and Greek flavours, this shop started life as a perennially crowded cafe before switching to takeaway, adding a second location in central Melbourne and even doing catering. But as owner Kirsty Chiaplias said: “None of these sufficed for our continuance.” It closed in September.