A popular Australian cafe has closed its doors after battling rising costs amid the country’s crippling cost of living crisis.
Dan’s Coffee Haus Australia, in Blaxland – a town in the Blue Mountains of NSW, about 65km west of Sydney, went into administration on Monday.
In a video shared to the cafe’s Instagram account, owners and best friends Daniel and Gabby revealed the cafe would be closing for good after 15 years.
Daniel explained that the couple couldn’t imagine the cafe ‘coming to an end’ when it first opened in 2009; However, the country faced a storm of challenges, including the cost of living crisis and cash-strapped customers.
“Basically, Gabs and I are at a stage where we’ve been thinking a lot about the future of this place, and we’ve decided that we’re going to close the doors,” Daniel said.
This is the most difficult season hospitality has seen in the last twenty years, as far as I can remember.
‘The current situation with the cost of living and people not having disposable income to spend on luxury items such as hospitality, has made life more difficult and stressful than enjoyable.
“We’ve always enjoyed what we do, we love what we do, but we also said that if it ever became more stress than fun, we would walk away.”
Dan’s Coffee Haus, in Blaxland – a town in NSW’s Blue Mountains – plunged into liquidation after struggling with the cost of living crisis
Daniel added that they “held on as long as they could,” but due to the current climate, it caused “more damage” the longer they continued to trade.
He said customers should not feel “sad” for them as they maintain a positive attitude towards the decision to close.
“We’re excited about our new chapters, whatever that looks like… we’re so grateful for this whole journey,” Daniel said.
“The greatest privilege and honor has been serving the Lower Mountain community for so long.”
The pair completed their video encouraging their customers to support other local cafes, bakeries, coffee shops and businesses.
“All these guys are trying to support their families and their employees, just like we’ve been doing for years,” Daniel said.
‘These boys need your help and support and we wish them all the luck in the world. They deserve it, they’re in the middle of it.’
Business partners Gabby (left) and Daniel (right) explained that the café was experiencing its toughest catering season in the last twenty years
The pair, who founded the cafe in 2009, encouraged customers not to be ‘sad’ for them and to support local businesses
It comes as hospitality companies across the country are succumbing to an industry-wide cost crisis.
Financial services and software company CreditorWatch predicted in a report published on May 21 that one in thirteen hospitality companies would go bankrupt in the next twelve months.
The report claimed that businesses were dependent on spending customers – a demographic that had ‘dried up as pressure on the cost of living increases’.
It stated that the food and beverage industry ranked first for third-party government and tax office debts over $100,000, as well as third for invoice payments more than 60 days past due.