Aggressive poaching and light-rail construction are also affecting Bar Rochford, Paranormal Wines and Pilot. “It feels like death by a thousand cuts.”
Gareth Meyer
One of Canberra’s leading restaurants will serve its last meal on May 30, after owner Louis Couttoupes made the surprise decision to close Onzieme. Although the five-year-old Kingston brasserie and 2025 Sydney Morning Herald Restaurant of the Year nominee was serving some of its best food, Couttoupes says staff turnover made the decision inevitable.
“Aggressive poaching within the industry has compounded the perennial challenge of finding and retaining skilled staff,” Couttoupes said.
“We get newly trained chefs that can’t make mayonnaise or fillet a fish, which usually means I carry more of the load, including putting in the effort to train staff up, only to lose them to big-city players that can afford to pay wages 30 to 40 per cent above market rates.”
Onzieme, which Couttoupes opened in October 2021, quickly accumulated awards for its adventurous and eclectic dishes and exuberant confidence on the floor. The venue followed a successful pop-up called Kiosk, and he had also helped Canberra spot Bar Rochford gain national attention.
But Couttoupes is not the only operator in the capital feeling the strain. “It’s the toughest it’s been for hospitality in decades,” says Bar Rochford owner Nick Smith.
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Like most Australian hospitality venues, Canberra operators are facing a perfect storm of challenges, including weaker household budgets, staff shortages, lower alcohol consumption among younger patrons and skyrocketing produce prices.
For businesses in a city like Canberra, where populations are small, it’s harder still, with many finding it difficult to fill dining rooms on weekdays. Last week Good Food reported that in the past 18 months, more than 60 high-profile restaurants, bars and cafes across regional NSW have shut.
These statistics contribute to what a 2026 CreditorWatch report found, that more than one in 10 restaurants and cafes have collapsed over the past year, meaning Australia’s hospitality sector has the highest failure rate of any industry.
Max Walker of one-hatted Paranormal Wines in Canberra’s Campbell says it’s also particularly difficult if you’re independent. He agrees with Couttoupes, saying the bigger players – by virtue of their scale and generous incentives to open in Canberra – put pressure on small operators.
“To survive, smaller venues have to be nimble, offer staff a better work-life balance and continue to adapt to changing consumer preferences for more casual eating,” he said.
At Bar Rochford, Smith is also fighting another battle: infrastructure. He says London Circuit (which the venue is on) is a byzantine labyrinth, making it tough for patrons to reach his 10-year-old venue.
The combination of light-rail extension, construction and reduced parking capacity have already claimed several establishments, including multi-million dollar venture Bada Bing, which lasted only 18 months.
“Visitor numbers are down about 30 per cent in recent months,” said Smith. “We’ve relied a lot on walk-ins, but there’s no flow now. And we face the prospect of restricted access and parking until about 2030.”
Ross McQuinn of two-hatted Pilot and one-hatted Such and Such agrees patrons are avoiding the city. “It’s great to have better infrastructure, but we risk having no places left to go out in a couple of years time.”
He’s also concerned with other ACT initiatives. “While well-intentioned, government policies like the new portable long-service scheme for industry workers will push up the cost of dining. It feels like death by a thousand cuts at times.”
Industry stalwart Jeff Lamshed of Yarralumla’s Lamshed’s Food + Wine says the juice is increasingly not worth the squeeze for owner-operators. “Costs really jumped after COVID, yet government seems to think it’s still the 1990s when it was a profitable business. I fear some great independent venues won’t survive.”
For some entrepreneurs, survival has meant pivoting to new business models such as food vans or hole-in-wall-style operations. Having closed Asian fine diner XO in 2023, AK Ramakrishna has found success serving Malaysian street food from an annex to the Nishi Building in Acton, AK’s.
“It’s freed me up to return to my roots and cook authentic regional specialities rather than dumming down the spice and heat. Work-life balance is much better as well.”
Canberrans’ sense of loyalty is also offering hope. Capital Brewing has channelled strong brand loyalty into Lager House – a part microbrewery and pub in the East Traders building in Campbell. Both Couttouppes and Smith also report a surge in support when they’ve publicly aired their difficulties on socials. The question is whether locals will remain loyal enough for long enough.
