Restaurant closures continue post COVID
It wouldn’t have been easy opening a restaurant in September 2020, during the Covid-19 lockdown, however, that is exactly what Nick Mathews-Bowden did in Sydney.
Along with his business partner and husband, Mathews-Bowde launched Ezra, an Israeli-influenced restaurant that quickly became a raging success.
As lockdowns eased and the government injected funds to boost the economy demand surged.
With that success, the pair opened a second restaurant, Raja, a modern Indian restaurant, in the neighbouring space.
Though it garnered great interest, difficulties arose due to rising interest rates and reduced consumer spending.
Consequently, on May 4, the restaurant closed less than 10 months after opening.
Mathews-Bowden put the closure down to the challenging market conditions that arose not only from COVID, but the post COVID cost of living crisis.
Mathews-Bowden, who has 18 years of experience in Sydney's restaurant industry, noted that current challenges are the most severe he has encountered, contrasting sharply with the unexpected pandemic-induced boom.
“Every restaurant and cafe owner is facing unprecedented challenges,” the Australian Restaurant and Café Association (ARCA) Wes Lambert, said in a statement on May 31.
“Taxes, inflation, wage pressures, costs of doing business and skilled staffing shortages, along with ever-increasing rents, are pushing the sector to the wall.”
While Raja was forced to close, Ezra is still operating but with modifications.
“A lot (fewer) people are dining out,” Mathews-Bowden said. “You can’t blame them. We operate in an industry that is the definition of discretionary spending, and the ability to dine out and treat ourselves to things has diminished.”
Ezra is now serving less complicate dishes that are cheaper to produce, while Raja is a pleasant memory.
But Raja is not alone.
On May 13 Tetsuya Wakuda said the iconinic Tetsuya’s would close at the end of July.
“This was not an easy decision, but sometimes things just don’t go to plan,” he said.
A week later Kylie Kwong said she was closing her inner-city restaurant Lucky Kwong.
“Everyone is feeling it,” she told The Sydney Morning Herald on May 20. “I have never seen the restaurant industry in such tough times as it is right now.”
Despite the downturn, there is a bright light.
In this time, Merivale’s Justin Hemmes has launched Good Luck Restaurant Lounge to rave reviews, while three restaurants debuted in the The Sydney Morning Herald’s Good Food Guide with two hats, including New York-style steakhouse Clam Bar seafood restaurant Petermen.
New places are cropping up, including pop-up restaurant, A Spot of Raine at Blue Door and Mathews-Bowden plans to open a new modern Australian restaurant in late August on the premises that housed Raja.
“I would be borderline sociopathic if I wasn’t nervous,”he said.
“I am excited. There are many lessons we have learnt from Raja. We are very lucky that we are having another go.”
Jonathan Jackson, 17th June 2024
