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Melbourne Pizza Chain Faces Collapse Amid Cost-of-Living Crisis

by Emma
The Pizza Bar

A Melbourne pizza chain, The Pizza Bar, has entered administration after a decade in operation. The outlets in Strathmore and Diggers Rest, located in the city’s north-west, are struggling as Australia’s cost-of-living crisis affects restaurant businesses and reduces demand for takeaway food.

The Strathmore location, established in September 2014, obtained a liquor license in March 2017. Originally based in Mackay, Queensland, the business operated an outdoor-seating restaurant before expanding to Melbourne. In February 2021, during Melbourne’s lockdown and a period of record-low interest rates, The Pizza Bar opened a new takeaway outlet in Diggers Rest.

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Both locations, situated near the Calder and Tullamarine freeways and close to Melbourne and Essendon airports, were registered as separate companies. However, due to reduced consumer spending, Hall Chadwick’s Melbourne director Nicholas Wollinski and Sydney-based partner Richard Albarran were appointed as administrators on August 29.

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Under administration, The Pizza Bar can continue trading while negotiating a debt agreement with creditors. The Australian Securities and Investments Commission (ASIC) had attempted to deregister the Strathmore business in June.

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Customer reviews on Trip Advisor for The Pizza Bar have been mixed. One reviewer criticized the cold food received from Uber Eats and poor service, while another praised the takeaway experience and the quality of the pizzas.

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In 2023-24, hospitality businesses have become one of the most common types of insolvencies, according to ASIC data, making up 15% of such cases. The Reserve Bank’s interest rate hikes have increased mortgage repayments, leading consumers to cut back on spending. National retail trade remained stagnant in July, with a 0.2% drop in demand for cafes, restaurants, and takeaway food, as reported by the Australian Bureau of Statistics.

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