Popular cafe is forced to close its doors as owner unleashes at local council for infuriating act that killed his business

A small business owner forced to close his cafe said he felt like he was being ‘extorted’ and compared a local council to the mob.

Nick Theodorou, 33,  closed Acai.Syd on Easter Sunday after operating at Manly, on Sydney’s northern beaches, for three-and-a-half-years.

The venue had become popular among influencers who came in droves for the soft serve açai and coconut bowls.

Mr Theodorou told Daily Mail Australia that while there were ‘many reasons’ for the closure including having to pay $2,100 a week in rent.

He said the main problem was with Northern Beaches Council, claiming he was hit with a 150 per cent increase over three years for an outdoor seating levy.

‘That was for just two square metres. It was ridiculous,’ he said.

‘I did my research for the rate for the outdoor seating and within 18 months it was more than twice the amount.’

Mr Theodorou was told by council the seating levy went up as part of a plan to win back some of their losses from the Covid period.

‘It felt like I was being extorted. It felt like I was dealing with the mob as opposed to a council,’ he said.

‘They wait until you’re 18 months in – when I’d invested in equipment, I’d invested in branding and building this little business – and then they hit me with that.

‘The feeling like we were dealing with a mob and not with someone that was trying to support us extended beyond dollars and cents.’  

Mr Theodorou said there were ‘constant battles with the council’ in dealing with a number of issues, including bins and rubbish and forced closures due to water damage from the sea.

‘And nine times out of ten the conditions were nowhere near “closer” conditions, yet we lost business on those days with no compensation,’ he said.

‘There were some waterworks to be done on the walkway, which was the only way to our shop. Again, no compensation there.

‘It was a month of waterworks where people had to take detours to get to our shop and they didn’t take them and we lost significant amounts of business. It felt impossible to succeed.’

Northern Beaches Council removed outdoor dining fees during Covid but told Daily Mail Australia it couldn’t last forever.

‘As the business landscape is changing it is fair to charge for businesses making money on public land,’ a council spokeswoman said.

‘Full fees have been applied since October, 2022. These rates have remained fixed since 2022, in recognition of inflationary pressures facing small businesses.

‘These rates were determined by a third party, independent valuer and consider a range of factors such as location, amenity and foot traffic and are comparable with other metropolitan local government areas.’

Mr Theodorou said over the years the cost of his products naturally went up, but not nearly as fast, or as much, as inflation as he battled the cost-of-living crisis.

‘I just felt that at the end of every month there was something coming from somebody. We never felt like we could catch a break,’ Mr Theodorou said.

‘Our rent up went up quite dramatically after our first stint and our second stint came and it was almost 40 per cent higher than when we originally came into the business.

‘It was the council rates and it was the council charges on things like outdoor seating.’

Mr Theodorou warned that popular tourist destinations like Manly were at risk of losing their appeal.

‘Manly is a visitor’s location. Do they really want tourists coming to sunny Manly, that they’ve seen on a million postcards, to see half a dozen shops closed as they get off the ferry?’ he said.

Northern Beaches Council said: ‘In considering the recommended fee structure for use of public land, council is always mindful of promoting a balance between public access, ratepayer interests and support for commercial activity.’