A Melbourne pizza chain has filed for bankruptcy after a decade in business.
Pizza Bar outlets in Strathmore and Diggers Rest, both in the city’s north-west, are in trouble as Australia’s cost of living crisis hits restaurant trade and demand for takeaway food.
The Strathmore establishment was first registered in September 2014 and obtained a license to serve alcohol in March 2017.
The business owners were initially based in Mackay, North Queensland, and ran a restaurant with outdoor seating.
The Pizza Bar expanded in February 2021, opening the Diggers Rest takeaway in a newly subdivided area when Melbourne was still in lockdown and Reserve Bank interest rates were at a record low of 0.1 per cent.
Both nightclubs were located in suburbs near the Calder and Tullamarine highways, very close to Melbourne and Essendon airports.
They were registered as two separate companies.
But as consumers cut back on non-essential spending, Melbourne-based director of chartered accountancy firm Hall Chadwick, Nicholas Wollinski, a registered liquidator, and Sydney-based partner Richard Albarran were appointed administrators on August 29.
A Melbourne pizza chain has filed for bankruptcy after a decade in business
Being in administration, The Pizza Bar locations can continue to operate until a debt agreement is reached with creditors.
The Australian Securities and Investments Commission (ASIC) had sought to deregister Strathmore’s business in June.
The business had mixed reviews on Trip Advisor and one customer criticised the service in October last year.
“The food arrived cold from the Uber driver, who was located five minutes away from the store,” the man said.
‘I called the store and couldn’t speak to the manager.
‘It’s clear that the site doesn’t care about food safety, as outside drivers require the use of thermal bags when meals arrive cold.
‘Regardless of whether food is left cold, they could insist that thermal bags be used when leaving the warehouse and kept to remedy this.’
But another customer left a glowing review in March 2023.
“Friday night takeout was a surprising delight,” he said.
Pizza Bar outlets in Strathmore and Diggers Rest, both in the city’s north-west, are in trouble as Australia’s cost of living crisis hits the restaurant industry.
‘I ordered online, the pickup was efficient and the quality of the pizzas was fantastic.
“We tried Ocean Catch and Veggie Delight and couldn’t fault them in terms of flavour, quality of ingredients and base. Thank you. We will be back.”
After construction, hospitality businesses were the next most common insolvencies in 2023-24, accounting for 15 per cent of affected firms, ASIC data showed.
The Reserve Bank’s 13 interest rate hikes in 2022 and 2023 have caused monthly mortgage payments to rise, meaning borrowers are cutting back on spending as bank lending is restricted.
Domestic retail trade remained stable in July, but demand for cafes, restaurants and takeaways fell 0.2 percent, data from the Australian Bureau of Statistics showed.
The Pizza Bar expanded in February 2021, opening the Diggers Rest location when Melbourne was still in lockdown and Reserve Bank interest rates were at a record low of 0.1 per cent.