The news comes after a challenging few years for Kellam and his wife and business partner, Clare Kellam. They opened 1000-square-metre The Kneadery and Lumiere just as the COVID-19 pandemic began to bear down on Australia in early 2020.
The original Mica at Newstead followed soon after, in April of that year. A Montrachet at Home pivot around the same time was hugely successful, at times delivering 1000 meals a day, and would later inspire Click Chef, which launched in November last year.
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The Kneadery picked up numerous wholesale customers, including Coles Local stores, but a flood-related electricity outage at the group’s Mercedes-Benz building home in early 2022 saw the Kellams lose more than $150,000 in stock.
The broader hospitality industry is facing trying times. Soaring running costs, including increased ingredient prices, rent and wages, are hitting hard at a time when the prices diners are paying at venues cannot keep pace amid a cost-of-living crisis.
One in 13 Australian hospitality businesses was predicted to fail in the next 12 months. With more than 36,000 restaurants in Australia, according to international research agency IBISWorld, the projection would mean nearly 5000 could shut between now and June 2025.
In a Business Risk Index report last week, Patrick Coghlan from CreditorWatch said the food and beverage industry topped the rankings for external administrations and tax office debts over $100,000, and was ranked third for arrears (invoice payments more than 60 days late).
It comes after years of upheaval for the industry. The COVID pandemic forced many businesses to pivot to takeaway, but many of the financial impacts were mitigated by government assistance as well as rent concessions. As lockdowns eased, cashed-up diners engaged in “revenge spending” to create a rebound period of bounty.
But as interest rates climbed, government agencies and other creditors became less lenient, looking to claw back their own ballooning debts. At the same time, the market became flooded with new openings that were delayed by COVID-19, diluting the pool of potential customers for existing businesses.
Shannon Kellam has been approached for comment.