The Carringbush Hotel in Melbourne decided to close permanently after revealing that it would have to charge customers $20 for a beer to survive.
The pub, which underwent a major renovation in 2019, announced on its Facebook page that it would be closing its doors after five and a half years.
The pub noted that it was struggling due to the current financial situation, but it decided to go out on a high.
It thanked its customers for their support and said that it would like to see many of them at its last two days of trade.
The pub will only be accepting walk-ins at this time. According to Liam Matthews, the high cost of everything in the hospitality industry had affected the business.
He noted that the restaurant had been putting more effort into its operations, but its profits were dwindling.
According to Mr Matthews, the rising cost of wages had affected the restaurant’s profits.
He also noted that the electricity bills had increased by $500 a month, and beer deliveries had become more expensive.
He said that the only way for the pub to survive was to increase the prices of its Mountain Goat beer.
He noted that the customers weren’t ready for the price increases. He said that this was the reason why the restaurant was struggling.
It comes as an Industry insider warned that the rising cost of taxes and the lack of demand were threatening the operations of breweries.
The collapse of Melbourne- based Deeds Brewery earlier this year was also cited as one of the factors that could affect the industry.