Din Tai Fung’s abrupt exit: Is it gone or just rebranded?
Din Tai Fung has quietly disappeared from Australia following a substantial financial penalty. In April 2024, the Taiwanese restaurant chain was fined A$4 million for underpaying workers. Shortly after, it ceased operations across the country, leaving many questioning the nature of its sudden exit.
The Fair Work Ombudsman (FWO) imposed A$4 million in penalties against the operators of three Din Tai Fung locations: World Square and Chatswood in Sydney, and Emporium in Melbourne. The penalty stemmed from underpayments amounting to A$157,025 across 17 migrant workers, with suggestions that the true figure could be significantly higher.
Despite these fines, only A$197,316 has been recovered, leaving A$3.89 million outstanding. The companies behind Din Tai Fung’s Australian operations—DTF World Square Pty Ltd and Selden Farlane Lachlan Investments Pty Ltd—are in liquidation. An FWO spokesperson confirmed that no distributions have been made to unsecured creditors, further casting doubt on whether the penalties will ever be fully repaid.
Despite the abrupt departure of Din Tai Fung, many of its former locations now house a new restaurant: Double Chin Eats. This establishment operates from the same addresses, employs former Din Tai Fung staff, and offers a menu strikingly similar to its predecessor.
A visit to one of the rebranded locations revealed a familiar atmosphere. A staff member confirmed to 7News the transformation, stating, “We used to be Din Tai Fung, but now we’re Double Chin Eats. The menu has broadened beyond Taiwanese food to encompass a diverse range of Asian cuisine.”
She further acknowledged that many former Din Tai Fung employees had been retained under the new company, which had acquired the business’s assets. However, she could not provide details regarding the reasons behind the transition.
While Double Chin Eats presents itself as a distinct venture, evidence suggests a deeper connection to Din Tai Fung. Former Din Tai Fung locations in Australia are now listed as “permanently closed” on Google Maps, with many replaced by Double Chin Eats.
Records from the Australian Securities and Investments Commission (ASIC) indicate that both businesses share the same service address: PO BOX K1223, Haymarket, NSW 1240. Furthermore, both names appear under the business registration of Skyler Finch Nien Investments Pty Ltd, raising questions about the extent of their affiliation.
The striking similarities between the two businesses have prompted speculation about possible phoenix activity—a practice where a company is liquidated to avoid debts, only for a new entity to emerge under a different name to continue operations.
Corporate law expert Jason Harris from the University of Sydney noted that continuing business from the same location is a strong indicator of phoenix activity. ASIC defines phoenix activity as the deliberate liquidation or abandonment of a company to evade financial liabilities such as taxes, creditor payments, and employee entitlements.
Ozem Azzam Kassem, the appointed liquidator, declined to comment on the case. His past professional history raises additional concerns, as he was expelled from the Australian Restructuring, Insolvency & Turnaround Association (ARITA) in 2018 for non-compliance with a disciplinary ruling related to procedural and remuneration issues.
Morgan Kelly, an EY partner specialising in restructuring, noted that phoenix activity is particularly prevalent in hospitality due to the sector’s financial instability. “Many restaurant businesses struggle to recover once they face financial distress. When a hospitality business is locked out for non-payment of rent, extracting value from fixtures and equipment can be challenging,” he said.
Kelly further told 7News, “If a company liquidates and its assets are transferred before liquidation to a new entity, this is illegal under the Corporations Act. ASIC has the authority to take action against directors involved in such activities.”
Din Tai Fung’s Taiwan-based headquarters appears to be distancing itself from the situation. In an email to 7NEWS, the company stated that it had terminated franchise rights in Australia and that any future operations in the country were still under evaluation.
While the Australian locations operated under a franchise model, the parent company has asserted that it was not directly involved in their management.
Jonathan Jackson, 6th March 2025
