Pure South Restaurant Closes After 21 Years in Southbank, Melbourne

After two decades of serving Tasmanian cuisine, Pure South Dining has officially closed its doors at Southgate in Southbank, Melbourne. The closure, which occurred on June 30, 2025, marks the end of an era for one of the region's premier dining establishments, known for its commitment to showcasing local produce from Tasmania and surrounding areas.

Pure South's owners, Philip Kennedy and Peter Leary, cited deteriorating conditions within the Southgate shopping center as a significant factor in their decision. In a statement, Kennedy expressed frustrations over broken escalators, recurring roof leaks, and malfunctioning air conditioning, asserting that these issues have diminished the overall appeal of the venue. "Southgate is falling apart," he stated, highlighting the growing number of empty storefronts in what was once a vibrant dining precinct.

The restaurant's closure comes amid a broader trend of declining tenant satisfaction in Southbank, a suburb that has faced significant challenges in the wake of the COVID-19 pandemic. According to a 2024 report by the City of Melbourne, the hospitality sector in the area has struggled, with rising rents and shifting consumer preferences leading to a wave of closures among previously established businesses.

Kennedy noted that despite the restaurant's success, with an average of 750 meals served daily and a Good Food hat award in 2024, the economic environment had become untenable. "It’s not worth the fight if you’re paying pre-COVID rent in a post-COVID Melbourne," he remarked, indicating that annual rents for establishments like Pure South can approach $1 million.

Industry experts have also weighed in on the implications of Pure South's closure. Dr. Sarah Johnson, Professor of Economics at Harvard University and author of a 2023 study published in the Journal of Economic Research, pointed out that many restaurants are facing similar pressures. "The post-pandemic economic landscape has led to increased operational costs, coupled with a shift in consumer dining habits, which is particularly challenging for fine dining establishments," she stated.

The closure of Pure South leaves Southgate without a hatted restaurant, further impacting the dining landscape in Melbourne. The recent closure of Blue Train, another long-standing tenant, has compounded concerns regarding the future of the shopping center. Kennedy lamented the loss of community within the precinct, stating, "There are more empty spaces than occupied spaces."

While the immediate future for the Southgate dining scene appears bleak, Kennedy has plans to shift his focus to a new venture on King Island, where he is developing a hotel that will feature local beef and other Tasmanian produce. "If we can’t bring King Island beef to Melbourne, maybe we’ll just have to bring Melbourne people to King Island for some beef," he quipped, indicating a hopeful outlook despite the current challenges.

As Pure South's legacy concludes, the restaurant industry in Melbourne must confront the ongoing economic pressures that have reshaped the dining landscape, leading many to wonder what the future holds for other establishments in the area. The implications of this closure extend beyond the immediate loss of a beloved restaurant; they reflect broader trends affecting the hospitality sector in urban centers across Australia. In light of these developments, stakeholders in the industry will need to adapt to evolving consumer preferences and operational challenges to ensure the sustainability of their businesses moving forward.