Victorian restaurants plan mass shutdown over gas bans, warn of economic hit
Victoria continues to live up to its moniker of ‘protest capital of the world’, but the mooted protest by restaurants owners may well be warranted.
Thousands of restaurants across the state are threatening to shut their doors for a day in protest against the Allan government’s gas reforms — a move the hospitality sector says could cost the state up to A$6 million in lost tax revenue.
The proposed action, led by the Australian Restaurant and Café Association (ARCA), is yet to be scheduled but could take place anytime before the 2026 state election. ARCA chief executive Wes Lambert said the single-day closure would send a clear message about the sector’s frustration with plans to mandate all-electric fit-outs for new hospitality venues from 2027.
“The industry is willing to stand up and come together for a state day of closure in order to highlight to the Premier and the relevant ministers that we mean business,” Lambert said.
While the state government recently dropped its plan to force existing homes off gas, it is pressing ahead with regulations requiring all new commercial buildings — excluding industrial, manufacturing and agricultural sites — to be fully electric from 1 January 2027.
Lambert earlier described the move as a “bombshell” for the hospitality industry.
High-profile restaurateur and ARCA deputy chair Chris Lucas believes the reforms could become a key election issue. “The next election will, in my view, be a referendum on these gas bans and our rights as citizens to choose what we feel is best for our homes and businesses,” he said.
“These latest proposed bans are a serious threat to the viability of thousands of workers and businesses. I support our association in calling for a statewide shutdown of our businesses to try and highlight our concerns with voters.”
The Victorian hospitality sector employs over 300,000 people across more than 26,000 venues. Business owners like Nik Pouloupatis of South Yarra’s Astoria Bar Ke Grill say the shift to electricity could place unnecessary pressure on small operators.
“The margins are extremely tight … so to throw something like this in the mix makes it difficult,” Pouloupatis said. “We’ve been cooking with gas for so long that a lot of cuisines are heavily reliant on that, and probably won’t achieve the same flavours cooking over induction.”
A Victorian government spokesperson defended the policy, saying: “We consulted with industry, including the hospitality sector on these changes and our reforms are supported by the sector’s largest representative body the Australian Hotel Association. The Australian Restaurant & Cafe Association – who are mainly based in NSW – did not make a submission to the Building Electrification RIS consultation.”
Jonathan Jackson, 30th June 2025
