Another Hogs Breath Cafe location has gone into administration, marking a troubling trend as nearly half of all franchised stores have closed in the past decade.
Hogs Breath Cafe in Mildura, a rural city in north west Victoria on the border of NSW, was forced into administration on September 20.
The restaurant went into administration just two years after it changed owners in 2022.
Mark Brereton, from HoganSprowles, was appointed as administrator and a first meeting of creditors of the company was set for October 3.
Administration is different to liquidation as it provides the opportunity for the business to recover after experiencing high levels of financial stress.
This follows the liquidation of three Hogs Breath franchisees in Tuggerah, Orange, and Coffs Harbour, NSW, last year.
Its understood the Central Coast location struggled to regain momentum following the pressure of Covid-19 lockdown restrictions in 2020 and 2021.
Just seven years ago, Hogs Breath Cafe had up to 80 flourishing venues, however, in 2021 the number of stores almost halved to just 47 remaining locations.
Hogs Breath Cafe Mildura (pictured), in Victorias north west, has plunged into administration
The restaurant chain has been forced to close almost half of its venues in the past decade
In 2019, about a dozen stores were forced to close after their owners declared bankruptcy or lost valuable assets.
At the time, Hogs Breath Cafes former chief executive Ross Worth said the company was facing its toughest environment weve seen in 30 years.
Mr Worth said there were a number of factors that led to the closure of multiple stores, including customers changing eating and drinking habits.
In addition to a decrease in spending, consumers have also significantly changed their eating and shopping habits with the arrival of food delivery services and increasing prevalence in meal kits, he said.
We are also experiencing increases in operational costs with rising wages, raw food costs, rent and electricity.
The iconic Australian restaurant chains has seen stores across the country shut for good after facing financial pressures following the Covid-19 pandemic (Hogs Breath Cafe in Logan)
Pandemic pressures saw the closure of venues in Palmerston, Carindale, Albury, Forster and Canberra Civic between December 2020 and February, 2021.
The seven venues still operating in Victoria are located in Mildura and Traralgon.
In NSW Hogs Breath customers can find stores in St Marys, Wagga Wagga, Penrith, Port Macquarie and Nelson Bay.
Across Australia, only 26 stores are still up and running. More than half of the stores are located in Queensland, with the others spread across Western Australia, Tasmania, Victoria and NSW.
Despite many Hogs Breath franchises closing down, last year CEO announced a plan to rejuvenate the brand and was scouting for new locations.
New restaurants will be modelled on a smaller floor plan to reduce the cost of rent, gas and electricity and ensure the restaurants are adequately staffed.
In rendered images of the new restaurants, customers are seated on long metal and wood tables with modern light furnishings.
New restaurants will be modelled on a smaller floor plan to reduce the cost of rent, gas and electricity and ensure the restaurants are adequately staffed (pictured, rendered plans)
In rendered images of the new restaurants, customers are seated on long metal and wood tables with modern light furnishings (pictured)
A smaller venue would save on costs, but also provide a more intimate dining experience, which was now preferred by the majority of customers, the CEO of Hogs Breath Cafe said
Mr Spurgin said this was in line with a global trend of downsizing due to staffing pressures, but would also create a more intimate dining experience, which was now preferred by the majority of customers.
The changes being implemented, including a new restaurant size and interior design, will ensure the sustainability of the franchisees and the brand, he said.
We have many successful restaurants and happy franchisees and were very confident in the further expansion of the brand under new management, with our new interior design and size of restaurant, and our continued regeneration in a post-Covid world.