Adelaide’s Hospitality Crisis Deepens as Iconic Venues Close – But There’s Still Hope for Some
The financial strain on Adelaide’s hospitality sector continues to claim victims, with three well-known venues announcing their closure within hours of each other.
West End’s Stem, Italian eatery Midnight Spaghetti, and beloved outdoor bar Roxie’s have all confirmed they will be shutting their doors in the coming months. The closures add to a growing list of restaurants, cafes, and bars struggling to stay afloat amidst soaring operational costs, including rent, energy bills, food expenses, and insurance premiums.
While rising costs have played a major role, many of these hospitality closures are also due to crushing debts from high-cost cash flow lenders like Propsa and Lumi. In an industry where liquidity is vital, short-term, high-interest loans have left some business owners unable to keep up with repayments, forcing them to shut down instead of restructure.
Iconic Venues Forced to Close
Stem, an upmarket venue on Hindley Street that recently launched a new menu in November, announced it will “regrettably close” on March 2.
“Sadly, it has been increasingly difficult to remain viable, and we have had to make the difficult decision to gracefully retire and close the restaurant,” the owners shared in a statement.
Soon after, the owners of Midnight Spaghetti and Roxie’s, located near the Crown & Anchor Hotel, also confirmed their fate. Tom Skipper, who owns both businesses, explained that the historic pub will be saved, but the building will be shut for up to two years for the construction of student accommodation. This means Midnight Spaghetti will close in mid-July with “no immediate plan for relocation,” while Roxie’s and adjoining event space Chateau Apollo will permanently close on May 25.
The closure of Roxie’s marks the end of an era for a venue that began as Little Miss Mexico in 2013, later transforming into Crab Shack, Super Fish, and finally Roxie’s in 2017.
These latest closures follow the shutdown of Little NNQ on Gouger St, BaliThai on Glynburn Rd, Cardone’s at Glenelg, Martini’s on the Parade, and Confession nightclub in Port Adelaide—all in the past year alone.
A Different Path: How One Café Owner Escaped the Debt Spiral
While some hospitality businesses are forced to close, others are finding alternative solutions. Renown Lending, a non-bank lender specialising in business finance, recently helped a café owner in Bowden refinance her debt and reduce her repayments by almost 6% per annum.
Like many struggling businesses, she had multiple high-interest cash flow loans that were eating into her profits. By switching to an asset-backed loan with Renown Lending, she not only cut her costs significantly but also received extra funds to expand and rebrand—something she never thought possible while drowning in repayments.
“This isn’t just about saving businesses from closure—it’s about giving them room to grow,” said Kalpi Prasad, Finance Partner at Renown Lending. “The hospitality industry is the heart of Adelaide, and we want to help business owners keep their doors open.”
For Adelaide’s struggling venues, there’s still hope. With the right financial strategy, businesses can escape the cycle of high-cost debt, lower their repayments, and find a path to sustainability—just like the Bowden café did.
As more hospitality businesses weigh their options, one thing is clear: smart financial decisions, not just cost-cutting, will determine who survives Adelaide’s hospitality crisis.
