One of Australia’s best-known family-friendly restaurant chains has announced it is closing the doors of two more branches.
Hog’s Breath Cafe on Friday revealed it is soon shutting its Dandenong and Karingal restaurants in Victoria.
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The Dandenong venue will shut due to ongoing health issues experienced by the franchisee, while Karingal’s closure has been blamed on long-term negative effects of shopping centre renovations the company says, “decimated the food precinct”.
Hog’s Breath Cafe said the restaurant was able to operate through the pandemic, however, deferred rent and increased competition meant it was no longer financially sustainable for the franchisee to continue business.
It comes after two of the business’s NSW franchises announced they had closed their doors, citing “unforeseen circumstances”.
Hog’s Breath Cafe recently had liquidators appointed to its Tuggerah and Coffs Harbour branches before the businesses closed last month.
CEO Steven Spurgin said the company would be looking at new sites with smaller restaurants in the area, as well as Coffs Harbour, Tuggerah and Gladstone, following their recent closure.
Spurgin said the company was moving towards a new model of restaurants that would make business more sustainable for franchisees by reducing rent, electricity and gas, as well as being easier to staff.
“Despite recent reports, Hog’s Breath Cafe as an entity is not experiencing financial difficulties,” Spurgin said.
“We have many successful restaurants and happy franchisees and we’re very confident in the further expansion of the brand under new management, with our new interior design and size of restaurant, and our continued regeneration in a post-COVID world.”
Spurgin said the franchisor was working closely with staff of closed branches to ensure they are aware of the process and their rights.
“But ultimately the employment relationship is between the franchisee and the staff members,” he said.
“Our head office team works extremely hard to provide our franchisees with the tools they need to remain compliant, including training, financial review, operational support and business development.”
The chain first opened its doors in 1989 in Airlie Beach in Queensland, and expanded to Mooloolaba before becoming a family favourite for meat-loving diners and once boasted over 80 stores in Australia and New Zealand.
The closures will leave 31 Hog’s Breath Cafe stores in operation nationwide.