Skyrocketing costs have claimed another popular eatery which has been forced to make the tough decision to shut its doors. Abbots and Kinney, a “cult” bakery and cafe with stores across Adelaide, made the decision to close its Croydon store as the lease was about to expire. Managing director Richard Wilson made the announcement on social media thanking the community.
“You have been so kind to us over the past years, but unfortunately our time here has come to an end,” he said. Journalism for the curious Australian across politics, business, culture and opinion. “Leases expiring and prices increasing, it’s something we’re hearing more and more often these days with lots of businesses being forced to make tough decisions.
” CreditorWatch revealed hospitality businesses operating in food and beverages were most vulnerable to current economic conditions by a significant margin over other industries. It predicted that 7.45 per cent of hospitality businesses could fail over the coming year.
Businesses were being challenged by consumer spending, as cost-of-living pressures saw consumers be more cautious about discretionary spending. Power prices, food costs and labour shortages were other factors putting pressure on the hospitality sector. CreditorWatch chief economist Anneke Thompson said a small fall in spending in the cafe, food and takeaway sector would compound already very difficult conditions for cafe and restaurant owners.
“This sector already has the highes.