Lucas Collective absorbs cost pressures as Grill Americano dominates Sydney
Melbourne hospitality heavyweight Chris Lucas is shielding diners from rising costs triggered by the Iran conflict, refusing to pass on surging petrol and packaging expenses to customers across his Lucas Collective venues.
While suppliers push supermarkets for price increases and Australian businesses brace for potential fuel rationing, Lucas is taking a different approach, leaning on careful procurement and supplier relationships to weather the storm.
"We are taking the view that we are not passing on any cost imposts whatsoever because we hope it comes to an end sooner rather than later, we have taken the position we have to be patient and work with the suppliers," Lucas told The Australian.
With a portfolio built almost entirely on Australian-sourced produce, Lucas says the group's supply chain insulates it somewhat from international price shocks. Rather than substitute ingredients or adjust menus, the group is absorbing the hit directly, despite the pressure.
"There's no doubt everyone is facing cost pressures, but we are basically soaking it up and wearing the cost, because it's not fair to the consumers," he said. "We are certainly not doing any food substitutions."
The strategy appears to be paying off. Lucas's 220-seat Italian steakhouse Grill Americano, which debuted in Sydney's Chifley Square just before Christmas, is running at near-full capacity across lunch and dinner, seven days a week. Lucas credits its rapid success to its positioning in Sydney's financial district and a straightforward menu philosophy.
"We have kept the food very simple and clean and authentic. We have not tried to complicate it, the pricing is the same in Sydney as it is in Melbourne," he said. "We are being rewarded by people because they think they are getting great value for money."
With two strong Sydney performers in Grill Americano and Chin Chin, the Lucas Collective founder — who oversees around 3,400 hospitality staff — says further Sydney expansion is the priority over chasing new cities.
Lucas isn’t slowing down and is set to open Wishbone in October, a 140-seat Hong Kong street food-inspired venue at the new $1.1 billion Cbus tower on Bourke Street in Melbourne's mid-town. Helmed by Dan Chan, formerly of Hong Kong's acclaimed Yardbird, the space has been designed in collaboration with Bates Smart architects to evoke a retro 1950s–70s Hong Kong aesthetic.
"Wishbone will have lots of dumplings, noodles and great cocktails," Lucas said, flagging ambitions to drive both lunch trade and evening destination dining in the precinct.
Jonathan Jackson, 20th April 2026
