That challenge – balancing rising costs with sustainable operations – is something Varun understands from another angle too. Alongside Happy Larry, he is also behind the popular Hobart restaurant Farzi, which late last year relocated into a shared arrangement with neighbouring pizza business Ti Ama on Castray Esplanade. The partnership is an example of a growing trend emerging across the country as hospitality operators search for smarter ways to survive escalating rents and operating expenses. For Farzi and Ti Ama, it made practical sense.
“I mean, the space has doubled,” Varun says. “Plus, collaborating with a business like Tiama, who are known for probably one of the best pizzas in Hobart, to be able to share the costs in this climate, in this market, where everything has gone up, just helps both of us.” Rather than viewing hospitality venues as businesses that must independently occupy a space seven days a week, the model focuses on maximising how a venue is used throughout the day. One operator may dominate breakfast and lunch trade, while another takes over in the evenings. In theory, everybody wins, including customers, who see more activation and vibrancy in hospitality precincts. For Varun, the move came together remarkably quickly.
“People when they’re travelling from interstate are coming for Happy Larry, which is always good as well,” he says. Still, Varun is realistic about the broader environment facing hospitality operators. Like many businesses across the state, Happy Larry has felt the effects of quieter CBD activity and changing customer patterns. Throw in the current global climate, and most venues are being forced to keep a close eye on the overheads.
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Tasmanian Hospitality Review June/July Edition
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