Over 1,000 Cafés Closed: Is Franchising the Future of Hospitality?
Australia’s hospitality industry is hurting.
More than 1,000 cafés and restaurants closed their doors in the past 12 months, many due to rising costs, staffing challenges, and burnout. Behind those numbers are the faces and families who gave everything to build their dream, only to walk away exhausted, defeated, and financially drained.
And the truth is, we don’t talk about this enough.
We don’t talk about the emotional toll of watching your café empty out while your bills stack up. We don’t talk about how hard it is to carry the weight of a business that feels more like a burden than a dream. And we rarely talk about what it takes to start again, especially in midlife, when it feels like everyone else has it figured out.
My Story: From Burnout to Brand Sale
Seven years ago, I launched Vasco’s Chargrill Chicken in Sydney. I had zero experience in hospitality. None. But I had drive, a vision, and the mindset to figure it out.
What started as a wild idea turned into an award-winning restaurant brand.
But here’s what people didn’t see behind the scenes:
- Paying wages from personal savings just to keep our doors open
- Power outages, broken fryers, and early morning emergencies
- Sitting on the floor crying, wondering how I’d make it through the week
- Staff walking out mid-shift, leaving us to jump behind the grill
And still, I kept going. Why?
Because I believed in what we were building. I believed that resourcefulness and resilience could get us through anything, and they did.
Eventually, we were approached by a hospitality group to take the Vasco’s brand and scale it even further. And after deep reflection, I made the decision to sell.
Not because I couldn’t keep going… but because I had already proven I could.
And I was ready for my next chapter.
Why Franchising Was Always the Plan
Franchising was always in the vision for Vasco’s. The systems were tight, the brand was loved, and the community was loyal. It would’ve been a brilliant move for scale, and I still believe in its potential for other operators.
So let’s talk about why franchising might be the path forward for those trying to survive in this new era of hospitality.
The Current Landscape: Hospitality in Crisis
Let’s break down what we’re seeing in the industry right now:
- More than 1,000 café closures in a year due to rising operational costs and debt recovery
- Ingredients and utilities at all-time highs, the cost of a chicken breast, lettuce, or gas line has doubled or tripled in many regions
- Customer volume declining as households cut back on non-essential spending
- Owner burnout is through the roof, especially for those doing it all with small teams and long hours
In many ways, these pressures are driving entrepreneurs to consider new models that reduce isolation and increase support.
Is Franchising the Answer?
Franchising can offer structure, brand support, and training systems that help new or existing operators thrive, without having to reinvent the wheel.
Here’s what it can provide:
- Brand recognition, no need to build trust from scratch
- Training and playbooks for operations and staffing
- Marketing support to drive local traffic
- Group buying power to reduce food costs and overheads
- A network of fellow operators to learn from and lean on
We’re seeing a rise in franchise interest not just from hospitality groups, but also from regional operators and investors looking for a proven model with built-in community and systems.
But let’s be clear…
Franchising Still Requires Due Diligence
Franchising isn’t a magic bullet. There are risks, misaligned expectations, and power imbalances that still exist in the Australian franchise landscape.
You need transparency, trust, and clear agreements around:
- Royalties and marketing fees
- Support and training promises
- Flexibility for localised offerings
- Exit strategies and dispute resolution
Franchising works best when it’s built on aligned values, not just contracts.
A Word on Resilience and Reinvention
Whether you’re franchising or flying solo, one thing is true:
You need to be resourceful to survive in hospitality today.
This is what I speak on, coach on, and believe in with my whole heart.
You don’t always need more resources, you need to become more resourceful.
That’s the message I share from the stage, in my programs, and soon… on the TEDx red circle this September.
And if you're a business owner feeling the pressure right now, know this:
You’re not alone. You’re not failing. You’re just being called to evolve.
There is no shame in changing models, getting help, or stepping into something new.
Sometimes the most powerful thing you can do is pause, pivot, and make your next power move.
Final Thought
I’ll always support small, local, independent cafés, because I know the grit, love, and energy it takes to run them.
But I also know that leadership today requires reinvention.
If you’re navigating tough choices in business, franchising might just be the next smart move, if done with clarity, intention, and the right guidance.
And if you're stuck in the hustle right now, maybe it’s time to ask:
What’s my next power move?
