Café De Vili's closes doors after unexpected announcement

Local restaurants and cafés are cornerstones that foster connection among community members.

A local community in Adelaide's northern suburbs received disheartening news as a beloved café announced its closure, leaving a void in the hearts of its patrons.


Café de Vili's in Elizabeth ceased operations last Thursday, 10 October.

The news of the closure spread after someone shared a photo of a note taped to the café's front door.

The note read, 'Company in liquidation + ceased trading'.


compressed-cafe de vilis.jpeg
Café de Vili's in Elizabeth served meals, comfort food, and pastries to its customers. Image Credit: Google Maps


Café de Vili's confirmed their closure in a separate social media post.

'Café De Vili's (franchisor) and Vili's Family Bakery are aware that the company that independently owned and operated Café De Vili's Elizabeth franchise is in liquidation and has ceased trading,' the statement read.

'The Company, Café 24/7 Pty Ltd trading as Café De Vili's Elizabeth, was a licensed franchisee of Café De Vili's. An entity unrelated to the ownership and operation of Vili's Family Bakery.'

'We remain fully committed to providing you with the high-quality service and products you have come to expect from our other sites, at Mile End, Hillcrest and Blair Athol,' the statement concluded.


Café de Vili's closure is not an isolated incident.

It became a part of a troubling trend that saw Adelaide eateries succumb to skyrocketing operation costs.

These financial pressures forced many business owners to close shop and stop business.

Abbots and Kinney, a bakery with a large following among Adelaide locals, recently closed its Croydon store and cited lease expiry as one of their main reasons.

Abbots and Kinney Managing Director Richard Wilson expressed his gratitude to the community.

He also acknowledged the challenging economic climate which led to rising prices.

CreditorWatch highlighted the vulnerability of hospitality businesses, particularly food and beverage businesses, to the current economic conditions.


According to the agency's data, about 7.45 per cent of hospitality businesses could fail in the coming year.

Factors such as changing consumer spending habits, power prices, food costs, and labour shortages have been putting immense pressure on the hospitality sector.

CreditorWatch's Chief Economist Anneke Thompson warned that even a slight dip in spending in these businesses could worsen the already challenging conditions café and restaurant owners face.

'This sector already has the highest rate of business insolvencies, and we expect insolvency rates to continue to rise as long as interest rates remain at their current levels,' Ms Thompson added.

Café de Vili's sudden closure is a reminder of the fragility of local businesses in the face of economic headwinds.

It serves as a wake-up call for the community to support their local establishments.
Key Takeaways

  • Café de Vili's in Elizabeth, Adelaide, announced its closure last Thursday.
  • A sign posted on the café's door and a social media statement confirmed that the company is in liquidation and has ceased trading.
  • Skyrocketing operations costs made several eateries in Adelaide close down.
  • CreditorWatch's chief economist highlighted the dire situation for cafés and restaurants, noted high insolvency rates and the impact of cost-of-living pressures and other economic factors.
Have you visited Café de Vili's in Elizabeth before? Do you know other community cafés that closed down recently? Share your stories with us in the comments section below.
 
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