Sydney’s Café Collapse: Why So Many Are Shutting Down in 2025

In 2021, Sydney was the café capital of Australia. In 2025? Over 420 hospitality venues are up for sale — and many are simply walking away.

Here’s why Sydney’s coffee culture is in serious trouble (and why we’re watching it closely):

💸 1. Rent Is Outpacing Revenue

Leases in key café suburbs like Surry Hills, Newtown and Bondi have increased by 12–18% since early 2023. Meanwhile, foot traffic is still down.

🍽 2. Casual Labour Costs Are Crushing Owners

Wages are up. Insurance is up. Supply chain costs are still inflated post-COVID. Many café owners are now working for free — or less than $10/hour.

📉 3. Even Established Cafés Are Listing

A 10-year-old coffee shop near Broadway with 400+ Google reviews recently went up for sale — at a loss. That’s not a startup problem. It’s industry-wide.

🪫 4. Customers Are Staying Home

Remote work = less weekday trade. Add in $6.80 oat lattes and $22 sandwiches and... you get it. Cafés are now considered “occasional luxuries.”

🧑‍⚖️ 5. The Liquidation Wave Has Begun

Business brokers report a 30% increase in hospitality sales listings this quarter. Cafés, wine bars and bakeries are flooding the market — quietly.

📣 Call to Action

If you run a café and want to stand out in a shrinking market — cleanliness is part of your brand. We’ll help you look spotless, inside and out.