Smith Street's Changing Landscape

Smith Street, a commercial strip in Melbourne, is undergoing significant changes, characterized by the closure of long-standing independent establishments and the arrival of larger retail and fast-casual chains.

Ides, a fine-dining restaurant that operated for a decade on Smith Street, is scheduled to close on March 14. The street has historically been recognized for its diverse and energetic character.

Gentrification and Development

Gentrification is accelerating in the area, marked by several major apartment projects from developers like DKO Architecture, CASA Property, and Milieu. This development includes the closure of the Fitzroy Woolworths supermarket at 243 Smith Street on January 31, with the site designated for apartment redevelopment.

Peter Gunn, owner of Ides, commented on the impact of new apartment blocks requiring ground-floor retail outlets, leading to higher rents and an influx of businesses not traditionally associated with Collingwood or Smith Street.

Shift in Business Demographics

The balance of businesses on Smith Street is shifting. While previously dominated by independent and locally rooted food options, the area is now attracting more chain establishments.

KFC is slated to move into a former Fonda site, Guzman y Gomez is in development, and retail giants such as Lululemon have established a presence. Several short-lived businesses, including Canadian vegan chain Copper Branch and a themed cafe called Blk and Whyte, have also opened and closed within a year, indicating a challenge for concepts that do not align with the neighborhood's established character.

Economic Pressures on Dining

Gunn attributes these changes not solely to local tastes but also to broader shifts in dining culture and economic divides. He believes there is a declining demand for mid-priced fine dining.

...specifically venues around the $200 price point, stating that the market is polarizing towards either high-end or low-cost set menus.

This economic trend, according to Gunn, allows larger chains to secure sites on Smith Street despite potentially not reflecting local preferences. He suggests that while the