Published on 24/07/2026 by Anybusiness

​One In 10 Hospitality Businesses Have Disappeared. Is Now The Best Time To Buy A Café?

Australia's hospitality industry is facing one of its toughest periods on record, with new figures showing 9.4% of food service and hospitality businesses ceased trading over the past year. Meanwhile, accommodation and food services now account for around 15% of all business administrations nationally, making it one of the country's hardest-hit sectors.

The figures come as seven Hobart pubs were recently placed into an urgent sale process, leaving around 80 employees without work and highlighting the financial pressures facing hospitality operators across Australia.

Business sale experts say while the headlines paint a bleak picture, the current market could also present opportunities for buyers prepared to do their homework.

Mary Tamvakologos, Director of Operations at AnyBusiness.com.au, says the wave of closures doesn't necessarily mean hospitality has become a bad investment.

She said:

"Whenever people hear that thousands of hospitality businesses are closing, the natural assumption is that nobody should be buying one. In reality, it often creates opportunities that simply don't exist during stronger markets.

The businesses making the headlines are usually those already struggling with rising costs, staffing shortages, rent increases or debt. That doesn't mean every café, restaurant or bar is in the same position."

According to Mary, buyers are now entering a market with greater choice and stronger negotiating power than they have had for years.

"During the post-pandemic recovery, quality hospitality businesses attracted intense competition and often sold quickly. Today, buyers generally have more time to carry out due diligence, negotiate better terms and compare multiple opportunities before making a decision."

However, she warns that buyers should avoid assuming every discounted business represents good value.

"A lower asking price doesn't automatically make a business a bargain. Buyers need to understand why it's being sold.

Look closely at profitability, lease terms, staffing costs, customer loyalty, online reviews and whether rising food and wage costs have permanently affected the business model."

Mary says some of Australia's strongest hospitality businesses continue to perform despite the challenging economy.

"We're still seeing well-run cafés, restaurants and takeaway businesses attract genuine interest because consumers haven't stopped eating out altogether. They're simply becoming much more selective about where they spend their money."

She believes sellers also need to adjust their expectations.

"The days of pricing businesses based on pandemic-era demand are largely behind us. Owners who present realistic valuations and transparent financials are much more likely to attract serious buyers."

While the current market presents challenges, Mary says it could also mark the beginning of a buyer's market for experienced operators.

"Every economic downturn creates winners as well as losers. Buyers with capital, industry experience and a long-term mindset may find opportunities today that simply weren't available a few years ago.

But success comes from buying the right business, not simply buying a cheaper one."

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