When Red Lantern opened its doors in Darlinghurst in 2002, it did something remarkable—it changed how an entire city thought about Vietnamese food.
Now, after more than two decades of serving Sydney, this culinary institution will close on 22 November, becoming another casualty of the harshest trading conditions the hospitality industry has ever faced. What happened to them?
The news hits particularly hard because Red Lantern wasn't just another restaurant. Co-founded by celebrity chef Luke Nguyen alongside his sister Pauline Nguyen and partner Mark Jensen, it transformed Vietnamese dining from budget-friendly meals on formica tables to sophisticated fine-dining experiences that won critical acclaim worldwide.
From refugee camp to restaurant royalty
The story behind Red Lantern makes its closure all the more poignant. Luke Nguyen's family escaped Vietnam by boat to Thailand in 1977, were sent to live in a Thai refugee camp where Luke was born, and a year later journeyed to Australia and settled in Cabramatta, Sydney.
Two Nguyen siblings in their 20s, Vietnamese refugees from Cabramatta, combined forces with celebrated French cuisine chef Mark Jensen to create Red Lantern. What started as an unlikely partnership became a cultural phenomenon that would influence not just Sydney's dining scene, but Vietnamese restaurants across Australia.
'The most awarded Vietnamese restaurant in the world'
Red Lantern's accolades
2025 Good Food Guide Critics' Pick
2024 R&CA Best Vietnamese Restaurant (National)
2024 R&CA Best Asian Restaurant (Sydney)
2023 R&CA Best Vietnamese Restaurant (National)
Luke Nguyen: Youngest person inducted into Sydney Morning Herald's Food Hall of Fame
When Red Lantern first opened, Vietnamese food in Australia was often associated with casual, inexpensive dining. But the restaurant elevated the cuisine with polished service, premium produce and fine-dining presentation. Dishes like caramelised pork and prawn-and-pork rice cakes became signatures that Sydney food lovers still talk about today.
The perfect storm hitting Sydney restaurants
Red Lantern's closure isn't happening in isolation. According to data from a recent Hospitality Industry Report, the cost-of-living crisis and rising inflation have impacted 99 per cent of hospitality venues. The numbers paint a grim picture for Sydney's dining scene.
A record 9.3 per cent (or one in 11 businesses) in the food and beverage service industry closed in the year to February 2025, a decent increase from the 7.4 per cent that shut up shop in the year to February 2024.
Co-owner and chef Mark Jensen told the Sydney Morning Herald that dwindling customer numbers during a harsh winter, rising cost of living, relentless wet weather, and Sydneysiders' tendency to chase new dining trends all contributed to the decision.
These pressures are crushing restaurants across the city. Thirty Sydney venues closed in 2024 or announced their final service, including high-profile casualties like Kylie Kwong's Lucky Kwong, and the 35-year-old Tetsuya's.
The economics behind the closures
For many Australian seniors who remember more stable economic times, the current situation might seem bewildering. But the numbers tell the story clearly. Some restaurants have seen ingredient prices increase by 50 per cent, yet they're reluctant to pass all additional costs onto customers, with only half of their increased costs covered by price increases.
Why restaurants are struggling right now
- Food price increases, energy and insurance price rises, wage increases, and higher rents
- Families struggling to make ends meet, leading to decreased discretionary spending on dining out
- Rent hikes, fewer diners with smaller budgets, and increased cost of produce
- Industry wages higher than ever, followed by oversupply of job-hunters from closures
Business owners are noticing a demographic shift, with older customers now making up more of their clientele as younger Australians are hit harder by cost-of-living pressures, while older Australians continue to spend more.
What this means for Sydney diners
The loss of Red Lantern represents more than just another restaurant closure—it's the end of an era that helped shape modern Australian dining. For the many seniors who watched Vietnamese cuisine evolve from a niche offering to mainstream acceptance, Red Lantern's closure feels particularly significant.
Industry veterans with 20 years of experience are calling this 'the most challenging market we've ever seen,' with venues that would have thrived just a few years ago now struggling to survive.
The ripple effects extend beyond individual restaurants. Hospitality teams across Sydney are saying it's the 'most challenging market' they've ever operated in, with venues of all sizes affected.
Red Lantern's lasting legacy
While Red Lantern winds down operations, the trio behind it isn't disappearing entirely. Luke Nguyen will continue to operate his Fat Noodle and Botanic House businesses after the planned closure, while Jensen focuses on his Tiger Purrr Chai start-up, and Pauline Nguyen continues building her career as an author and keynote speaker.
As Pauline Nguyen puts it: 'This is not a closure, it's a celebration. Red Lantern was never just about food'. The restaurant's influence on how Australians understand and appreciate Vietnamese cuisine will outlast its physical presence.
Did you know?
Did you know?
In 2009, Luke Nguyen founded the Little Lantern Foundation in Hoi An, Vietnam, which gives disadvantaged youths opportunities to undertake hospitality training programs. The foundation continues to operate today, showing how Red Lantern's impact extends far beyond Sydney's dining scene.
Red Lantern will celebrate its final months with special events and collaborations before serving its last meal on 22 November. For those who want to experience this piece of Sydney dining history one more time, reservations are filling quickly.
The closure adds to what industry observers are calling an unprecedented wave of restaurant closures in Sydney. Restaurant and Catering Australia has warned that 1 in 11 businesses in the sector will collapse in 2025, suggesting that Red Lantern won't be the last beloved venue to say goodbye.
For many Australian diners, particularly those who remember when Vietnamese food was far less common on Sydney menus, Red Lantern's closure marks the end of a chapter in the city's culinary evolution. It's a reminder that even the most successful and culturally significant restaurants aren't immune to economic pressures.
What This Means For You
As Sydney's dining landscape continues to shift, Red Lantern's 23-year journey from groundbreaking newcomer to beloved institution reminds us that restaurants are more than just businesses—they're cultural landmarks that help define a city's character.
What memories do you have of Red Lantern or other iconic Sydney restaurants that have shaped your dining experiences over the years? Share your thoughts about how the city's food scene has evolved.
Original Article
https://www.dailymail.co.uk/femail/...ey-restaurant-announces-closure-25-years.html
Luke Nguyen—Wikipedia
Cited text: In 1977, Luke Nguyen's family escaped Vietnam by boat to Thailand in search of a new life. Upon arriving in Thailand, they were sent to live in a Thai...
Excerpt: Luke Nguyen's family escaped Vietnam by boat to Thailand in 1977, were sent to live in a Thai refugee camp where Luke was born, and a year later journeyed to Australia and settled in Cabramatta, Sydney
https://en.wikipedia.org/wiki/Luke_Nguyen
Red Lantern, The Most Awarded Vietnamese Restaurant In The World | Brands of Kin
Cited text: How do two Nguyen siblings in their 20s, (Vietnamese refugees from Cabramatta) combine forces with celebrated French cuisine chef, Mark Jensen, to cre...
Excerpt: Two Nguyen siblings in their 20s, Vietnamese refugees from Cabramatta, combined forces with celebrated French cuisine chef Mark Jensen to create Red Lantern
https://brandsofkin.com/red-lantern-the-most-awarded-vietnamese-restaurant-in-the-world/
Restaurant, Darlinghurst | Modern Vietnamese & Asian Cuisine | Red Lantern
Cited text: THE MOST AWARDED VIETNAMESE RESTAURANT IN THE WORLD · 2025 GOOD FOOD GUIDE CRITICS' PICK 2024 R&CA BEST VIETNAMESE RESTAURANT (NATIONAL) 2024 R&CA BES...
Excerpt: 2025 Good Food Guide Critics' Pick, 2024 R&CA Best Vietnamese Restaurant (National), 2024 R&CA Best Asian Restaurant (Sydney), 2023 R&CA Best Vietnamese Restaurant (National)
Luke Nguyen—Wikipedia
Cited text: Ngyuen was the youngest person inducted into the Sydney Morning Herald's Food Hall of Fame.
Excerpt: Luke Nguyen became the youngest person inducted into the Sydney Morning Herald's Food Hall of Fame
https://en.wikipedia.org/wiki/Luke_Nguyen
Cost of Living Crisis & Its Impact On The Hospitality Industry—Lightspeed
Cited text: · According to data from our recent Hospitality Industry Report, the cost-of-living crisis and risinginflation have impacted 99 per cent of hospitality venues...
Excerpt: According to data from a recent Hospitality Industry Report, the cost-of-living crisis and rising inflation have impacted 99 per cent of hospitality venues
https://www.lightspeedhq.com.au/blog/restaurant-inflation/
Hospitality sector suffering amid record business closures—Broker Daily
Cited text: Our vital food and beverage service industry is doing it tough amid high costs, with a record 9.3 per cent (or one in 11 businesses) closing in the ye...
Excerpt: A record 9.3 per cent (or one in 11 businesses) in the food and beverage service industry closed in the year to February 2025, a decent increase from the 7.4 per cent that shut up shop in the year to February 2024
https://www.brokerdaily.au/economy/20138-hospitality-sector-suffering-amid-record-business-closures
Closures: The Sydney Venues That Shut Up Shop in 2024
Cited text: Here are 30 Sydney venues that closed this year (or have announced their final service).
Excerpt: Thirty Sydney venues closed in 2024 or announced their final service
https://www.broadsheet.com.au/sydney/food-and-drink/article/all-sydney-venues-have-closed-year-2024
What’s Harder Than Opening a Restaurant in 2024? Staying Open
Cited text: In recent weeks, Melbourne institution La Luna has announced its last service, Kylie Kwong has left the restaurant industry, and Sydney icon Tetsuya’s...
Excerpt: Kylie Kwong's Lucky Kwong, and the 35-year-old Tetsuya's
https://www.broadsheet.com.au/featured/whats-harder-opening-restaurant-2024-staying-open
Cost of Living Crisis & Its Impact On The Hospitality Industry—Lightspeed
Cited text: As we discussed earlier, Bluebonnet Barbecue’s ingredient prices have increased by 50 per cent, yet they’re still reluctant to pass all the additional costs o...
Excerpt: Some restaurants have seen ingredient prices increase by 50 per cent, yet they're reluctant to pass all additional costs onto customers, with only half of their increased costs covered by price increases
https://www.lightspeedhq.com.au/blog/restaurant-inflation/
Hospitality sector suffering amid record business closures—Broker Daily
Cited text: Things like food price increases, energy and insurance price rises, wage increases, and higher rents have all played a part.
Excerpt: Food price increases, energy and insurance price rises, wage increases, and higher rents
https://www.brokerdaily.au/economy/20138-hospitality-sector-suffering-amid-record-business-closures
2024 Australian Hospitality Industry Statistics
Cited text: Families struggled to make ends meet, leading to a significant decrease in discretionary spending, including dining out and travel.
Excerpt: Families struggling to make ends meet, leading to decreased discretionary spending on dining out
https://resdiary.com/blog/2024-hospitality-industry-statistics-in-australia
Seven Sydney Hospitality Closures, August 2024
Cited text: Reporting on venue closures has become a more frequent task amid news of rent hikes, fewer diners (with smaller budgets) and the increased cost of pro...
Excerpt: Rent hikes, fewer diners with smaller budgets, and increased cost of produce
https://www.broadsheet.com.au/sydney/food-and-drink/article/seven-sydney-hospo-closures-august-2024
What’s Harder Than Opening a Restaurant in 2024? Staying Open
Cited text: Industry wages are higher than ever and until recently, no one could find staff. And now that the post-Covid labour shortage in the hospitality indust...
Excerpt: Industry wages higher than ever, followed by oversupply of job-hunters from closures
https://www.broadsheet.com.au/featured/whats-harder-opening-restaurant-2024-staying-open
Restaurants shuttering as hospitality sector struggles
Cited text: Rachel Power, owner of Mt Field Retreat in Tasmania, says business has been slower lately and the demographics of customers are shifting towards older...
Excerpt: Business owners are noticing a demographic shift, with older customers now making up more of their clientele as younger Australians are hit harder by cost-of-living pressures, while older Australians continue to spend more
https://www.thenewdaily.com.au/finance/finance-news/2024/05/20/hospitality-inflation-crisis
Here's How Sydney's Hospitality Industry Is Fighting the Closure Crisis
Cited text: 'We opened Raja in the most challenging market we've ever seen and we've been in this industry for 20 years. The venue just wasn't right for the curre...
Excerpt: Industry veterans with 20 years of experience are calling this 'the most challenging market we've ever seen,' with venues that would have thrived just a few years ago now struggling to survive
https://concreteplayground.com/sydney/food-drink/sydney-closure-crisis-feature
Seven Sydney Hospitality Closures, August 2024
Cited text: Regardless of size or style of venue, our hospitality teams are saying it’s the “most challenging market” they’ve ever operated in. In June we shared ...
Excerpt: Hospitality teams across Sydney are saying it's the 'most challenging market' they've ever operated in, with venues of all sizes affected
https://www.broadsheet.com.au/sydney/food-and-drink/article/seven-sydney-hospo-closures-august-2024
Luke Nguyen closing his first restaurant, Sydney’s iconic Red Lantern, after two decades
Cited text: Red Lantern was the first restaurant opened by Luke Nguyen who will continue to operate the Fat Noodle and Botanic House businesses after the planned ...
Excerpt: Luke Nguyen will continue to operate his Fat Noodle and Botanic House businesses after the planned closure
https://www.businessnewsaustralia.com/articles/luke-nguyen-closing-red-lantern-vietnamese.html
Luke Nguyen closing his first restaurant, Sydney’s iconic Red Lantern, after two decades
Cited text: “This is not a closure, it’s a celebration,” says Pauline Nguyen. “Red Lantern was never just about food.
Excerpt: As Pauline Nguyen puts it: 'This is not a closure, it's a celebration. Red Lantern was never just about food'
https://www.businessnewsaustralia.com/articles/luke-nguyen-closing-red-lantern-vietnamese.html
Luke Nguyen—Wikipedia
Cited text: In 2009, Luke Nguyen and his then-partner, Suzanna Boyd founded the Little Lantern Foundation in Hoi An, which gives disadvantaged youths an opportuni...
Excerpt: In 2009, Luke Nguyen founded the Little Lantern Foundation in Hoi An, Vietnam, which gives disadvantaged youths opportunities to undertake hospitality training programs
https://en.wikipedia.org/wiki/Luke_Nguyen
Closure of Australian retail chain Rivers points to a deepening economic crisis—World Socialist Web Site
Cited text: Restaurant and Catering Australia (RCA), a hospitality industry peak body, has warned that 1 in 11 businesses in the sector will collapse in 2025.
Excerpt: Restaurant and Catering Australia has warned that 1 in 11 businesses in the sector will collapse in 2025
https://www.wsws.org/en/articles/2025/02/27/edbu-f27.html
Seniors Discount Club
Latest Articles
-
-
That bargain ALDI TV is back—but here's what you really need to know before you queue up
- Started by Gian T
- Replies: 1
-
Mobile outage disrupts a town's beloved Wildflower Festival—and nobody saw this coming
- Started by Maan
- Replies: 0
-
-
Storage mistake leaving towels stiff? Expert shares tips on how to fix it
- Started by Gian T
- Replies: 0
