Iconic Aussie restaurant chain set for major overhaul after two more store closures

A Queensland-born national restaurant franchise will take on a new-look business model to try to ensure its longevity.

Iconic Australian hospitality chain Hog’s Breath Cafe will dramatically overhaul its restaurants across the country as the Queensland-born brand fights to survive following two more eatery closures this week.

The 34-year-old business with 32 stores Down Under, was forced to shut outlets in Dandenong and Karingal in Victoria, with Dandenong unable to continue due to health issues with the owner and Karingal crushed by long-term negative impacts of the shopping centre renovations it resided in.

They follow recent closures of the brand’s Coffs Harbour, Tuggerah and Gladstone restaurants.

But the franchise has announced it is fighting back, revealing plans for new-look, smaller restaurants that it says will make business more sustainable for franchisees by reducing the cost of rent, electricity and gas, as well as being able to adequately staff the restaurants.

“With halving the size of the restaurant it halves everything – the rent, the gas, the electricity,” said Hog’s Breath Cafe CEO Steven Spurgin.

An artist's impression of the new-look Hog's Breath Cafe outlets.

The new, smaller venues are set to be rolled out in the regions where the recent outlets have closed; while the remaining restaurants across the country are set for a dramatic makeover.

The new look will see tenancies seat between 100-140 diners, about half to a third of that of the old restaurants, and will feature a lighter, brighter, more open plan fit-out, doing away with the American saloon vibe and instead trying to reflect the region it sits in.

“Airlie Beach, for example, will have a sailing theme because we want each restaurant to reflect its surroundings and we want to reinforce that we are committed to the local areas we are operating in,” Mr Spurgin said.

The new designs have already been introduced into the Logan and Ipswich stores in Queensland, with the Springfield and Toowoomba outlets in the state next up for a facelift.

The company is also eyeing off further expansion, with four new stores planned for Perth, and the Northern Territory and Canberra also in the pipeline.

“Despite recent reports, Hog’s Breath Cafe as an entity is not experiencing financial difficulties,” Mr Spurgin said.

“We have many successful restaurants and happy franchisees and we’re very confident in the further expansion of the brand under new management, with our new interior design and size of restaurant, and our continued regeneration in a post-Covid world.”

However, Mr Spurgin could not rule out more closures of existing stores if current franchisees didn’t meet their exacting standards.

“Unfortunately, we may see further closures as a result of this, but we will do all we can to keep open and sustainable, but we’re committed to operating within the Franchising Code of Conduct, and meeting all the requirements of running a business in Australia, including abiding by business and tax laws,” he said.

Originally published as Iconic Aussie restaurant chain set for major overhaul after two more store closures