‘Balancing act’: Behind the scenes of Toowoomba’s struggling hospitality industry

A popular Toowoomba restaurant will shut its doors this weekend, months after a string of abrupt closures that shocked the dining scene. Now one hospitality owner has lifted the lid on why.

(from left ) Ryan McBurney, Alister Ferguson and Tim Anderssen. Bone Idol Brewery launch at The Plate Restaurant when it launched in 2022. Picture: Nev Madsen.

As Chef’s Hat awarded Toowoomba eatery The Plate Restaurant looks to close its doors on Saturday, the pressures facing the hospitality industry are being laid bare.

Within the past few months no less than six established Toowoomba restaurants have shut up shop with many siting economic and staffing pressures.

In May one of Toowoomba’s most popular restaurants, Encores, closed its doors after 28 year.

Owners Mark and Meredith Rawlings saying the decision was driven by timing and the difficult business climate.

“After 28 years in one of the most iconic venues in Toowoomba, it is time to make way for newer (and possibly slimmer) blood,” the couple said via a statement.

“With the end of lease upon us, the decision – should we stay or should we go – has been a difficult choice.

“However, with hospitality staffing more challenging than ever and no end in sight to the challenges of trying to run a small business in today’s climate, we have decided it is time for a change.”

Encores owners Mark and Meredith Rawlings made the decision to close with “no end in sight to the challenges”.

In the same month long-running CBD restaurant and cafe Muller Bros abruptly shut, with mystery still surrounding its closure.

Muller Bros was the city’s first rooftop venue that specialised in Brazilian-style barbecuing, was named of Queensland’s best “high life bars” back in 2018, and sat within the top 25 restaurants in Toowoomba according to TripAdvisor.

Just days prior, Hog’s Breath permanently shut, while the iconic Picnic Point Cafe remains in a state of limbo, serving just coffees and ice-cream.

Kyle 'Zev' Zevenbergen recently celebrated 20 years in hospitality and said the industry was facing a difficult time.

Kyle ‘Zev’ Zevenbergen, who has worked in hospitality for two decades and owns the popular HOST, said the closures were emblematic of a broader issue impacting hospitality.

“I respect how tough it is to operate in hospitality, especially in Toowoomba. With rising costs across the board, wages, overheads, and constant supplier increases, it doesn’t take much to fall behind,” he said.

“If you’re not constantly across every detail, things can spiral quickly, and unfortunately, that pressure can lead to some hard decisions.

“Hospitality has always been a high-effort, low-margin industry, even high-performing venues typically operate on just 5 to 10% profit.

“In the current climate, where costs are rising across the board, from produce and wages to rent and utilities, these already tight margins are under even more pressure.

“There’s no room to absorb the increases without either raising prices (which has its own risks) or taking the hit personally.

“For many operators and me, this means longer hours, leaner teams, and carrying more of the weight ourselves just to keep the doors open and the experience intact. It’s a balancing act right now.”

Zev said he had seen diner patterns change.

Mr Zevenbergen said with changing diner patterns and overall rising costs, restaurants needed to remain flexible.

“Customers are dining out less often, but with more intention. When they do book, they want it to feel worth it, personal, and a bit special, value matters more than ever, but it’s not just about price, it’s about the full experience,” he said.

“We stay lean and connected to every part of the business, keep our menus tight and seasonal, work closely with suppliers, and design dishes that are high impact without

relying on expensive hero. We invest in culture, when a team feels valued and clear on the vision, they deliver at a higher level without needing layers of management.

“I personally do my best to lead by example. If I’m asking them to show up with energy and care, I do the same.”

Mr Zevenbergen said looking forward they would continue to adapt to the times and urged diners to support local restaurants.

“We’ll keep building community over clout and focus on agility over excess,” he said.

“Smaller is smarter and better for everyone.”