Hogs Breath café closes more venues as it looks to reinvent
The Hogs Breath café continues to close down locations as it looks to move in a fresh direction.
The popular chain recently shut down three locations, with another two to follow in coming weeks.
The Dandenong and Karingal stores in Melbourne’s southeast will close their doors for good, just days after the Tuggerah, Coffs Harbour and Gladstone restaurants entered liquidation.
The Dandenong store has closed due to health issues experienced by its franchisee, as well as lease extension problems.
Karingal has closed due to the impacts of renovations at a nearby shopping centre that 'decimated the food precinct'.
“The restaurant was able to trade through Covid and continued shutdowns but the deferred rental and increased competition in the new food precinct means the business is no longer sustainable for the franchisee,” a Hogs Breath statement read.
There are still 33 Hog’s Breath restaurants operating throughout Australia, with CEO CEO Steven Spurgin hosing down reports of financial struggles.
Spurgin said the chain is looking for smaller sites for the shut down Coffs Harbour, Tuggerah and Gladstone operations.
The restaurants will have a smaller floor plan to reduce the cost of rent, gas and electricity. It will also help with staffing issues.
Spurgin said smaller venues will create a more intimate dining experience.
“The changes being implemented, including a new restaurant size and interior design, will ensure the sustainability of the franchisees and the brand,' he 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.”
Hog's Breath Cafe owners Don Algie and Ginger White have managed the chain for over 34 years and recently bought the company back from HBCA in October 2020.
The pair aim to restore Hogs Breath to its former glory when it peaked in 2016 with 88 locations Australia-wide.
The current revamp is two and half years in the making, however there will be more closures before a period of growth can occur.
Some closures will be down to workplace laws and regulations not being followed.
“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,” the CEO said.
Head office is working closely with franchisees and staff to ensure their rights are met.
“Our head office team works extremely hard to provide our franchisees with the tools they need to remain compliant, including training, financial review, operational support and business development.”
Hogs Breath has closed almost half of its venues in the past 10 years, with pandemic pressures playing a major part.
Poor service, a move to healthier diets and more convenient fast food options have also had an impact.
Jonathan Jackson, 13th June 2023
