Popular Brisbane burger chain goes into liquidation
Popular burger chain Wing Fix has ceased operating after going into liquidation last month.
The company informed its Coorparoo and Newmarketcustomers of the November 13 closure in a Facebook post. The company cited unprecedented economic times and increasing costs.
“We would like to thank everyone, past and present, customers, staff, landlords, suppliers who have been on this journey with us.
“From starting as a little market stall, to opening our flagship Coorparoo store and weathering the Covid storm followed closely by unprecedented interest rate rises, it has certainly been a wild ride.
“Thank you Wing Kings and Queens. It’s not goodbye for us, it’s just see you later.”
Owners Peter and Ross Jacobi told The Courier Mail, “Over the past 12 months, we’ve had protein go up 30 per cent, beets go up 25 per cent, dairy has gone up 20 per cent fresh produce, 10 to 15 per cent flour goes into our burger buns.
“When you combine that with a decrease in sales and already fine margins and people who already can’t afford to eat out and it needs to become more expensive to become more viable for the business.”
A sharp rise in business insolvencies has been observed in the first quarter of the financial year, with the hospitality sector emerging as a particular area of concern.
According to the latest data from the corporate regulator, the number of companies entering external administration or having a controller appointed increased by 43% compared to the same period in 2023. Notably, the accommodation and food services sector experienced a staggering 100% increase in insolvencies, outpacing even the construction sector.
Credit reporting bureau CreditorWatch has identified the hospitality industry as one of the highest-risk sectors, citing factors such as rising interest rates, increased input costs, energy price hikes, reduced foot traffic in CBD areas, and weakened consumer demand due to cost-of-living pressures.
Patrick Coghlan, CEO of CreditorWatch, believes a significant improvement in conditions for businesses in sectors like hospitality and the arts is unlikely until the Reserve Bank initiates interest rate cuts.
“These industries that are heavily reliant on discretionary spending will, unfortunately, continue to find it tough until consumers feel a reduction in cost-of-living pressures, which won’t happen until we see a couple of rate cuts,” Coghlansaid.
“Discretionary spending is one of the few ways that consumers can actively cuts costs, whether that’s eating out less, buying fewer coffees at cafes or not seeing so many concerts or theatre shows.”
Jonathan Jackson, 5th December 2024
