‘The tourists have stopped coming’: Well-known restaurants close in regional Victoria

The cost-of-living crunch and difficulties in the hospitality sector are hitting regional Victorian restaurants and cafes hard. A high-profile Ballarat restaurant went into voluntary administration last week, and a well-known Hepburn Springs restaurant and cafe closed its doors for good last weekend.

Restaurateur Tim Matthews placed his flagship Ballarat pizzeria, The Forge, into administration on Monday. He cites a hostile business environment starting with interest rate rises. “Every time the Reserve Bank announced another rise, I could see a steep drop in our takings,” says Matthews. “Add to this the debt accrued during COVID, a lack of staff, increased cost of energy and produce. And now revenue has dropped to 50 per cent of pre-COVID levels. It is incredibly stressful.” Matthews, who opened The Forge in 2012, plans to restructure and keep trading.

A fellow Ballarat hospitality entrepreneur and winemaker, John Harris, opened the award-winning wine bar Mitchell Harris with his in-laws around the same time. Now the business is on the market. “We still make a profit, but there are fewer people spending money on what we offer: premium wine and food, and there are fewer people visiting regional Victoria. The tourists have stopped coming.” Harris plans to continue running the wine bar until a new owner is found, and will also make wine and expand his burgeoning rum distillery.

“It is cheaper for us to close the restaurant and still pay rent than to keep on trading. I really worry for the long-term survival of our industry.”

Caliopi Buck, Frank and Connie’s Kitchen and Harry’s Cafe

This weekend sees the final service for Hepburn Springs restaurant Frank and Connie’s Kitchen. Owner Caliopi Buck and her partner Cara Kunze have cut costs for months, but now there is nothing left to cut. “The turnover has dropped so much,” says Buck, “it is cheaper for us to close the restaurant and still pay rent than to keep on trading. I really worry for the long-term survival of our industry.” The restaurant and nearby cafe, Harry’s, are now for sale.

Industry advocate Jodie Gillett says if nothing is done, more regional eateries will be forced to close their doors in the coming months. As CEO of Commerce Ballarat and chair of the Victorian Regional Chamber Alliance, Gillett says: “It’s like COVID all over again, except with no direct financial support or grant opportunities to assist. Recovering from the pandemic, holding debt, tax increases, staff shortages, skill shortages, drought, flood, new legislation to absorb, the list goes on. So many are at breaking point.”

Recent notable regional Victorian venue closures include Beechworth gastropub The Empire and popular neighbouring cafe Amandhi’s. In Bendigo, sourdough bakery The Good Loaf, upmarket Ambergris Hotel in Geelong, and three venues in Maldon: Le Sel, Franco’s, and The Kangaroo Hotel have all closed in recent months.

Gillett quotes figures she has gleaned from local businesses. “The electricity bill for one business was $5500 in October 2023; now it’s $8000,” she says. “A liquor license in 2022 was $1000, now it’s $3400.” She also cites building insurance increases of 40 per cent. “A lot of this is government red tape,” adds Gillett. “I have been trying to talk to senior ministers to tell them just how bad the regional economy is,” she says. “The further you get from Melbourne, the worse it is.”

Gillett makes a plea. “Please, if you can afford it, come to regional Victoria and dine with us,” she says. “We have great restaurants and cafes in beautiful locations serving fresh seasonal local produce with warm hospitality.”