Popular pizza chain hits hard times: Local favourite enters administration amid economic strain
- Replies 6
It's a tough slice to swallow for pizza lovers as a beloved local chain is facing significant challenges as it goes into administration.
Known for its local presence and community ties, the restaurant's financial difficulties have led to this critical step.
The situation is unfolding, and many are concerned about the future of the beloved establishment and its impact on both employees and patrons.
Melbourne’s The Pizza Bar has entered administration after ten years of operation.
The chain’s locations in Strathmore and Diggers Rest, situated in Melbourne's north-west, are facing difficulties due to the impact of Australia's cost-of-living crisis on the restaurant industry and reduced demand for takeaway food.
The Strathmore outlet opened in September 2014 and obtained a licence to serve alcohol in March 2017.
The business owners originally operated from Mackay in north Queensland, where they managed a restaurant with outdoor seating.
In February 2021, The Pizza Bar expanded by opening a takeaway outlet in Diggers Rest, a newly-developed area, during Melbourne's lockdown and when Reserve Bank interest rates were at a historic low of 0.1 per cent.
Both outlets were situated in suburbs near the Calder and Tullamarine freeways, close to Melbourne and Essendon airports.
Registered as separate companies, the outlets faced financial challenges as consumers reduced non-essential spending.
As a result, Hall Chadwick's Melbourne Director, Nicholas Wollinski, and Sydney-based partner Richard Albarran, were appointed administrators on August 29.
While under administration, The Pizza Bar outlets can keep operating until a debt agreement is reached with creditors.
In June, the Australian Securities and Investments Commission (ASIC) sought to deregister the Strathmore business.
The business received mixed reviews on TripAdvisor, with one customer criticising the service in October of the previous year.
‘Food arrived cold from Uber driver—located five minutes from shop,’ the customer wrote.
‘Called store and could not speak with manager.’
‘Clearly site doesn't care about food safety with external drivers enforcing heat bags as meals arrived cold.’
‘Regardless of whether food left cold they could insist that heat bags are used when leaving store and maintained to address,’ they added.
However, another customer left a glowing review in March 2023.
‘Friday night takeaway was a surprising delight,’ they shared.
‘Ordered online, pick up was efficient, and the quality of the pizzas was fantastic.’
‘We had Ocean Catch and Veggie Delight and couldn't fault them for flavour, quality of toppings and base. Thank you. We'll be back,’ the customer added.
Following the construction sector, hospitality businesses were the second most common type of insolvency in 2023-24, accounting for 15 per cent of affected companies, according to ASIC data.
The Reserve Bank's 13 interest rate increases in 2022 and 2023 have led to a surge in monthly mortgage repayments, prompting borrowers to reduce spending as bank lending tightens.
While national retail trade remained stable in July, demand for cafes, restaurants, and takeaway food decreased by 0.2 per cent, as the Australian Bureau of Statistics reported.
As The Pizza Bar chain faces challenges and enters administration, it's evident that the hospitality sector is under significant strain.
This trend isn't isolated, as evidenced by another fan-favourite restaurant chain also struggling in the current economic climate.
The recent news of a popular burger chain going into administration highlights a broader issue impacting many dining establishments, underscoring the difficulties that businesses in the food and hospitality industry are experiencing.
Have you noticed changes in your local dining scene? What are your favourite memories of The Pizza Bar or other local establishments that have made an impact on your community?
Join the conversation below, and let's discuss the ways we can come together to support the businesses that serve up slices of happiness.
Known for its local presence and community ties, the restaurant's financial difficulties have led to this critical step.
The situation is unfolding, and many are concerned about the future of the beloved establishment and its impact on both employees and patrons.
Melbourne’s The Pizza Bar has entered administration after ten years of operation.
The chain’s locations in Strathmore and Diggers Rest, situated in Melbourne's north-west, are facing difficulties due to the impact of Australia's cost-of-living crisis on the restaurant industry and reduced demand for takeaway food.
The Strathmore outlet opened in September 2014 and obtained a licence to serve alcohol in March 2017.
Melbourne's The Pizza Bar chain, with locations in Strathmore and Diggers Rest, has entered administration due to financial struggles. Credit: Facebook / The Pizza Bar Strathmore
The business owners originally operated from Mackay in north Queensland, where they managed a restaurant with outdoor seating.
In February 2021, The Pizza Bar expanded by opening a takeaway outlet in Diggers Rest, a newly-developed area, during Melbourne's lockdown and when Reserve Bank interest rates were at a historic low of 0.1 per cent.
Both outlets were situated in suburbs near the Calder and Tullamarine freeways, close to Melbourne and Essendon airports.
Registered as separate companies, the outlets faced financial challenges as consumers reduced non-essential spending.
As a result, Hall Chadwick's Melbourne Director, Nicholas Wollinski, and Sydney-based partner Richard Albarran, were appointed administrators on August 29.
While under administration, The Pizza Bar outlets can keep operating until a debt agreement is reached with creditors.
In June, the Australian Securities and Investments Commission (ASIC) sought to deregister the Strathmore business.
The business received mixed reviews on TripAdvisor, with one customer criticising the service in October of the previous year.
‘Food arrived cold from Uber driver—located five minutes from shop,’ the customer wrote.
‘Called store and could not speak with manager.’
‘Clearly site doesn't care about food safety with external drivers enforcing heat bags as meals arrived cold.’
‘Regardless of whether food left cold they could insist that heat bags are used when leaving store and maintained to address,’ they added.
However, another customer left a glowing review in March 2023.
‘Friday night takeaway was a surprising delight,’ they shared.
‘Ordered online, pick up was efficient, and the quality of the pizzas was fantastic.’
‘We had Ocean Catch and Veggie Delight and couldn't fault them for flavour, quality of toppings and base. Thank you. We'll be back,’ the customer added.
Following the construction sector, hospitality businesses were the second most common type of insolvency in 2023-24, accounting for 15 per cent of affected companies, according to ASIC data.
The Reserve Bank's 13 interest rate increases in 2022 and 2023 have led to a surge in monthly mortgage repayments, prompting borrowers to reduce spending as bank lending tightens.
While national retail trade remained stable in July, demand for cafes, restaurants, and takeaway food decreased by 0.2 per cent, as the Australian Bureau of Statistics reported.
As The Pizza Bar chain faces challenges and enters administration, it's evident that the hospitality sector is under significant strain.
This trend isn't isolated, as evidenced by another fan-favourite restaurant chain also struggling in the current economic climate.
The recent news of a popular burger chain going into administration highlights a broader issue impacting many dining establishments, underscoring the difficulties that businesses in the food and hospitality industry are experiencing.
Join the conversation below, and let's discuss the ways we can come together to support the businesses that serve up slices of happiness.
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another one bites the dust oorooooo 
