A beloved cafe has unveiled its shock closure with its owners blaming the cost-of-living crisis as rents soar and operation costs become unsustainable. Two Franks has been operating for four years in Coburg, north Melbourne, but will no longer be serving customers from August 1. Sisters Angie Markou and Chryssie Swarbrick informed Yahoo it was no longer financially viable to maintain their dream business after weathering ‘one crisis after another’, including inflation and rising interest rates.'
As small business owners, you expect to work hard, but when you're doing everything you can and still going backwards, you have to decide if it's time to go,'Ms Markou stated. The cafe has seen operating costs increase year on year, with everything from coffee and milk to rent, electricity and insurance becoming more costly. Ms Markou stated the final straw was the recent changes to wages and superannuation, along with the upcoming ban on card surcharges.'
It was just the nail in the coffin. I'm pre-empting how much more challenging it's going to be and getting out before it gets even worse,'she stated. Earlier this month, award wages increased by 4.
75 per cent and employers kicked off paying superannuation at the same time as wages under the new payday super system. Sisters Angie Markou and Chryssie Swarbrick opened Two Franks four years ago but say the business is no longer financially viable. Ms Markou estimates the change will add a further $10,000 a year to the cafe's costs.
In a post shared with the cafe's large social media following, the owners stated they believed small businesses needed greater support.' We think that small business can be better considered and supported, while also paying staff generously and supporting their futures through super contributions. 'Sometimes, it feels like changes are brought in in isolation, with no understanding of their impact on a small business as a whole,' the sisters said on social media.
The owners said they hoped to see a future where small businesses 'can thrive without the constant stress and pressure on their backs'. The closure highlights the tough conditions facing small businesses across Australia, with more than 14,000 businesses going under last year, according to ASIC. Since announcing the closure, the sisters have been inundated with messages from other small business owners, with many sharing that it has become 'impossible' to keep their businesses afloat.
Melbourne favourite Two Franks will close its doors for good on August 1 'We've had a lot of businesses reach out and say they're in exactly the same boat,' Ms Swarbrick stated.