Two Franks Cafe Closes as Wage Hikes and Card Surcharge Ban Hit Melbourne Small Business

Two Franks, a beloved Melbourne cafe, will close its doors on August 1 after four years of operation. Sisters Angie Markou and Chryssie Swarbrick blame a cascade of cost increases: a 4.75% award wage rise on July 1, new payday superannuation payments, and an October 1 ban on card surcharges that will add $10,000 annually to their costs. The closure has resonated across Australia’s hospitality sector, with other cafe owners reporting similar financial strain.

What pushed Two Franks over the edge

The cafe faced rising costs across every line item: coffee, milk, rent, electricity, insurance, and packaging all increased. But the final blow came in July when multiple government changes hit simultaneously. Award wages jumped 4.75% on July 1, and employers began paying superannuation at the same time wages are paid under the new payday super system. Markou told Yahoo Finance the timing was catastrophic. “While individually the changes are reasonable and you could make it work, having them all come in all at once with such a short period of time to get prepared was just the nail in the coffin,” she said.

The card surcharge ban will cost $10,000 a year

From October 1, Australian businesses will be banned from adding surcharges to card payments. The advertised price must be the final price regardless of payment method. Markou estimates this single change will cost Two Franks $10,000 annually. The sisters said in a statement that changes are brought in with no understanding of their impact on small business as a whole.

Other cafes report identical struggles

Two Franks’ closure has prompted fellow hospitality owners to speak out about their own hardship. Campground Kitchen and Bar, a pizzeria in Braybrook, posted on Instagram: “The costs are through the roof, and the toll is too high.” Lady Bower, a cafe in Reservoir, wrote: “We feel your pain, knowing first hand exactly how you feel.” Markou told SmartCompany that the feedback from other businesses shows many owners are suffering and for a lot of them, the only way out is to close.

What the sisters wanted to happen differently

In their final social media post, Markou and Swarbrick defended their staff’s right to earn fair wages and receive superannuation contributions. They also acknowledged the cafe had attracted daily crowds and become a beloved part of the Coburg community. But they argued the real problem was the timing and cumulative effect. “We think that small business can be better considered and supported, while also paying staff generously and supporting their futures through super contributions,” the sisters said. The cafe opened three years ago in a building that was previously a butcher shop, fulfilling a childhood dream for the sisters who grew up across the street.

Final Thoughts

Two Franks’ closure signals a broader crisis in Australian hospitality. When wage rises, superannuation changes, and payment bans arrive simultaneously, even profitable cafes with loyal customers cannot survive. Small business owners are choosing to exit rather than absorb the cumulative shock.

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