A taste of heartbreak: Beloved eatery shuts its doors after bitter rent feud

Melbourne's most talked-about restaurant opening of 2024 has become its most shocking closure story, as a bitter landlord dispute forced the popular Tokyo ramen sensation to lock its doors without warning—along with an entire strip of neighbouring eateries.

Just four months after opening to queues stretching down La Trobe Street, Kikanbo Ramen, Tokyo's legendary spicy miso specialist that has been a cult favourite in Japan since 2009, found itself caught in a legal battle that has nothing to do with its runaway success and everything to do with property politics gone wrong.

The restaurant, which opened just 90 days ago to rave reviews and 'billions' of views on social media, had quickly become one of Melbourne’s hottest dining tickets, with visitors calling its spicy miso the 'best ramen on earth.'

The timing couldn't be more cruel for these business owners, who weathered years of construction chaos from the Metro Tunnel project only to see their doors locked just as foot traffic was finally returning to normal.

Within hours of receiving the notice, the locks had been changed and staff were locked out — they weren’t the only ones. Next door, Thai restaurant R Harn suffered the same fate. So too did Machi Machi, Katta Kit, and the soon-to-be-opened Luke’s Vietnamese.

The statements from Kikanbo Melbourne and their team. Image source: @kikanbo_melb / Instagram.

From Tokyo sensation to Melbourne phenomenon

Kikanbo's founder and team flew from Japan to Melbourne to personally train local staff and recreate the authentic Tokyo experience, complete with demon masks on walls and taiko drums thundering in the background.

The restaurant specialises in what's called 'karashibi' ramen—a dual-sensation combination of chilli heat (kara) and Sichuan pepper numbness (shibi) with spice levels ranging from zero to 'demon'.

The cult Tokyo ramen brand came to Melbourne mid-year and saw lines around the block as it brought its signature 'demonic' theme to the CBD.

The Melbourne outpost wasn't just copying the Tokyo formula—it added a wagyu ramen made with top-grade Victorian beef, something you won't find in Japan. Despite charging between $24-30 per bowl compared to typical Tokyo prices, customers didn't seem to mind, with social media videos racking up thousands of likes and shares.

With 8,712 Instagram followers built up in just months and food reviewers declaring it 'easily one of the best I've had outside Japan', Kikanbo had achieved something rare in Melbourne's competitive dining scene—instant legendary status.

Construction chaos finally ends, then this happens

What makes this closure particularly heartbreaking is the timing. These La Trobe Street businesses had already endured years of disruption during the construction of State Library Station, part of the $15.5 billion Metro Tunnel project. Sections of nearby streets were closed off and acoustic sheds constructed, while commercial buildings were demolished for construction access.

'It wasn’t just interrupted, the footpath was closed. No cars, no pedestrians,' R Harn co-owner Chavalit ‘Top’ Piyaphanee told news.com.au. 'The roads reopened a week ago and we were starting to see people come back. Then we got the email.'

R Harn co-owner Chavalit 'Top' Piyaphanee summed up the frustration perfectly: 'We've been biting the bullet to see how the business will go once the station opened but we never got the chance just because landlords are bickering and having an argument.'

He added, 'At 7:15am I got an alert on my camera that there was movement. I saw them changing the locks. It was shocking. We’re pretty screwed. Like watching a movie. We just don’t understand why it’s happening. We can’t afford to close, I can’t just accept this.'

His restaurant had been patiently waiting for the foot traffic to return, having invested in the location's long-term potential. The roads had only just reopened, customers were starting to discover the area again, and then came Friday night's devastating email.

'We’ve been doing everything right. Always paying the rent on time,' he said. 'It’s not right.'

The bombshell legal dispute

At 9:30pm on a Friday night, during the dinner service rush, restaurant owners received an email that would change everything. The dispute sits between 260 Latrobe Mercator Pty Ltd (the restaurants' landlord) and the building's head landlord, who took over when the building was sold in February 2024.

The email, seen by news.com.au, read in part: 'We act for your landlord, 260 Latrobe Mercator Pty Ltd. As you are aware, you are occupying the premises pursuant to a sub-lease with our client. As you may also be aware, the head landlord changed in February 2025 when the building was sold. We regret to inform you that our client has been having issues with the head landlord of the building. Unfortunately, we expect that this is going to result in the head landlord unilaterally terminating our client’s lease, as early as tomorrow. The result of this would be that your sub-lease with our client will also be terminated.'

But here's where it gets particularly unfair for Kikanbo. The legal notice specifically singles out Kikanbo, claiming the sub-landlord failed to ensure 'its Tenant's Agent Kikanbo did not carry on—a noxious, noisome, or offensive business at the Premises, being the Japanese food and ramen business'.

Calling a legitimate, popular restaurant a 'noxious' business shocked many, especially given its critical acclaim and massive fan following online.

Terms designed to fail

When the head landlord offered new licensing terms to continue operating, they appeared designed to force businesses out rather than provide a genuine solution. The proposed monthly fees of almost $25,000 came with conditions including:

• 14-day termination notice at the landlord's discretion
• Prohibition on 'any musical instrument, radio, television, public address system or other device likely to be heard outside the venue'
• Ability for the landlord to adjust terms and increase rent at will

As Piyaphanee's lawyer advised, these terms were 'extremely unfair' and essentially gave tenants no security or protection whatsoever.

The formal licence also stated: 'Despite any other provision of this licence, this licence may be terminated at any time by the licensor giving 14 days’ written notice.'

A double blow for experienced operators

For R Harn's owners, this closure represents their second major displacement in recent years. Their highly successful Soi38 Thai restaurant was forced to relocate when hospitality mogul Justin Hemmes purchased their Little Collins Street car park location for his latest development project.

Hemmes’ plan—described as his 'boldest and most innovative project to date'—will transform the former site into a new hospitality and entertainment precinct in the Paris End of the city.

'Nobody likes us to be anywhere,' Piyaphanee said with resigned laughter—a sentiment that will resonate with many small business owners who've watched prime Melbourne locations being snapped up by major developers.

The closure has forced restaurants to disappoint eager customers on social media. Kikanbo's Instagram account, which had been showcasing their demon-themed bowls and building anticipation, now simply states: 'CLOSED until further notice'.

The restaurant also posted: 'Unfortunately there is an ongoing dispute between the landlord and the sub landlord. Sadly this is out of our control and has affected all the business on this block. Keep an eye on our social media for further updates.'

What this means for Melbourne diners and business owners

Commercial lease disputes like this highlight the vulnerability of even successful businesses when caught between warring landlords. Unlike residential tenants, commercial tenants have fewer protections and can find themselves homeless through no fault of their own.

For Melbourne's food scene, losing a venue that had achieved genuine viral success represents more than just one restaurant closing—it's about the city's reputation for supporting innovative hospitality. When international brands choose Melbourne for their first Australian outpost, they're making a statement about our city's dining culture.

The restaurants have reached out to Melbourne Lord Mayor Nick Reece for support, but as of reporting, they're still waiting for a response.

The human cost

Behind the legal jargon and property disputes are real people who've invested their savings, time, and dreams into these businesses. Hundreds of kilos of food were thrown away, representing thousands of dollars in waste. Staff found themselves suddenly unemployed through no fault of their own or their employers.

For Kikanbo's Melbourne team, who had worked closely with the Tokyo founders to recreate an authentic experience, the closure represents months of training and preparation lost to circumstances completely beyond their control.

What happens next?

As the legal dispute continues, the affected restaurants remain in limbo. Some, like Kikanbo, had built significant followings and were contributing to the area's recovery after years of construction disruption. Others, like Luke's Vietnamese, never got the chance to open at all.

The case serves as a reminder that in commercial property disputes, it's often the small business operators who suffer most, regardless of how successful or compliant they might be.

Have you been affected by similar commercial lease disputes, or do you have experience navigating Melbourne's changing dining scene during major construction projects? We'd love to hear your stories and thoughts about supporting local businesses through challenging times.