Popular Bagel Chain Condemns Council Over $23,000 Closure Reason

The Struggle of a Bagel Chain Owner

A popular bagel chain, Lox in a Box, found itself in a difficult situation when it was forced to pay $23,000 due to non-compliant windows. This financial burden came with the added stress of having to close the store and lose a day of trade. The owner, Candy Berger, has been vocal about her frustrations with a local council, which she claims has made her life difficult.

Berger, who runs a traditional Polish bagel shop with four locations across Sydney, faced challenges at her latest store in Coogee. The restaurant originally had a canteen-style window for takeaway orders. However, this setup led to issues with the local authorities. The venue received a notice from Randwick Council demanding that she revert to the original bifold windows by September 15 or face closure.

The council claimed the canteen-style windows posed a 'safety risk' and intruded on 'public space.' Berger, however, argued that the changes were intended to improve the area. She stated, "We thought that we were doing something good for the street; we upgraded the building from what it looked like before to what it looks like now."

According to Berger, someone from the community had informed the council that the work done on the building wasn't DA-approved. This led to her spending $8,000 on replacing the windows and an additional $15,000 on a certifier and development application to meet the council's demands. The $23,000 cost was on top of the 'huge loss' from closing the store.

Berger had already invested $400,000 on initial renovations to transform a drab store into a welcoming and lively venue. Her experience is not unique, as many small business owners are frustrated with the red tape imposed by councils.

The Broader Impact on Small Businesses

Data from Business NSW shows that 72% of cafés, bars, and shops feel existing regulations are too 'demanding,' up from 53% two years ago. Small to medium-sized businesses spend up to 20 hours a month on compliance, while large businesses can spend up to 40 hours a week. These lost hours can be crippling for small businesses that cannot afford to outsource help with compliance.

More than 60% of business owners who dealt with the planning system in 2024 reported a negative experience. Only six had something positive to say. Daniel Hunter, the chief executive officer of Business NSW, highlighted that DA fees are a massive 'financial drain on small businesses.'

He emphasized that small businesses aren't asking for less accountability but rather a fairer and simpler system that doesn't waste hours of their week tangled in red tape.

The Cost of Compliance

The Productivity Commission recently found that businesses spend up to $38,360 on applications and forms when opening. This includes plans for management, owner consent, consultation fees, and environmental impact statements. Productivity Commissioner Peter Achterstraat AM warned policymakers that the existing system can 'discourage investment (and) constrain trading opportunities.'

The challenges faced by small businesses highlight the need for a more streamlined and efficient regulatory process. While accountability is essential, the current system often places an undue burden on those who are trying to run their businesses effectively.

Conclusion

The case of Lox in a Box underscores the broader issues facing small businesses in Sydney and beyond. As the regulatory landscape continues to evolve, there is a growing need for a balance between ensuring safety and fostering a supportive environment for business owners. The experiences of entrepreneurs like Candy Berger serve as a reminder of the importance of clear, fair, and manageable regulations that allow businesses to thrive without unnecessary hurdles.