The Grounds tipped to bring its ‘Instagram-famous’ flair to Wollongong’s Lagoon site
One of Sydney’s most photogenic hospitality brands is shaping up as the favourite to take over the lease of Wollongong’s iconic Lagoon Restaurant site.
The Grounds – the team behind the hugely popular The Grounds of Alexandria – has lodged a bid with Wollongong City Council to run the beachside venue at Stuart Park, North Wollongong.
Best known for its flagship all-day cafe in Alexandria, The Grounds has long been an Instagram darling, thanks to its lush gardens, outdoor dining spaces and even a tiny animal farm that keeps the crowds coming every weekend. One study of Instagram hashtags on the world’s most popular restaurants even ranked The Grounds of Alexandria at number one.
Now the group, which already operates several venues across Sydney, is looking south, with its tender emerging as one of only two submitted for the soon-to-be-vacant Lagoon Restaurant site. The other tender came from Top Pub Mittagong, operator of the Mittagong Hotel.
Council business papers for Monday night’s meeting show staff have recommended The Grounds be awarded a five-year commercial lease, with an option for an additional five years.
"Council should endorse the recommendations in this report and approve entering into a commercial lease agreement with The Grounds of Alexandria Pty Ltd for the beachside restaurant at Stuart Park, North Wollongong," the business papers stated.
"This offer provides a commercial return to the community and aligns with Council's operational objectives for the property."
The rent figure hasn’t been disclosed in the public documents.
Lagoon Restaurant has been a long-term tenant on the site, operating under a 20-year lease granted in 2006. With that agreement expiring in July next year, and the property owned by council, a competitive tender process was required.
A council spokesperson said the process was kicked off early to balance fairness for the current operator with enough lead time for the incoming tenant.
The spokesperson said the tender process ensured there was “an open and transparent process in place for the current operator while also providing time for successful tenderer to establish their business mid next year".
Lord Mayor Tania Brown said it was also about making sure the council maximised value from its assets at a time when many local governments are under financial pressure.
"You see a lot of councils around are asking for rate variations, increasing their rates - I'm trying to make sure that we do all we can to avoid taking that step," Cr Brown said.
"We're doing an audit of all of our assets to make sure that we're getting the best return for the community so that we don't have to take those sorts of measures."
Jonathan Jackson, 9th December 2025
