Five years on: How these food businesses bounced back from the COVID era

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Few industries were hit harder by the 2020 lockdowns than food and hospitality. Overnight, the rhythm of cafés, pubs, and restaurants across Australia was shaken up – dining rooms went dark, staff stood down, fridges packed with produce and nowhere for it to go.

While some regional venues managed to find opportunity in the surge of local tourism, for most, survival meant fast pivots, tough calls, and months of uncertainty. Some shut their doors for good, others powered through on takeaway and so many had to rethink what it meant to run a food business in a world that kept changing week to week.


Now, five years on, these businesses speak to Crumb Wire about their stories of resilience and keeping up the momentum:

The Rusty Rabbit - Sydney, Multiple locations

Josh and Jamesray Khoury

The Rusty Rabbit has been part of Sydney’s café scene for more than a decade, first opening in Darlinghurst in 2014 before expanding to Burwood, Epping, St Leonards and most recently Concord. Known for its playful twists on brunch classics, the café has built a loyal following that stuck with it through the toughest years of COVID.

“We opened in November 2014 in Darlinghurst, followed by Burwood in 2017, where we operated for about five years before selling the business two years ago. Since then, we’ve opened a store in St Leonards and then most recently in Concord, which for us was a bit of a homecoming, because we’ve grown up in the inner west,” says owner Josh Khoury.

The Burwood and Epping locations were most affected by the pandemic.

“We had four stores going into COVID – Darlinghurst, St Leonards, Burwood and Epping – and each one was on a different journey. Darlinghurst had been around for so long and was very much a neighbourhood café, so it stayed busy with locals grabbing coffee. But newer spots like Epping didn’t have that foundation of customers yet and Burwood really struggled when all the offices didn’t come back. It ended up being very much about the community you’d built over time. That’s what pushed us through,” says owner Josh Khoury.

The secret sauce to Rusty Rabbit’s comeback was consistency, according to Khoury – much like their menu, which is consistent across all locations – a deliberate choice to keep expectations the same whether you’re in Darlinghurst or the suburbs. Pancakes (both sweet and savoury) are a weekend hit, alongside shawarma tacos and the sweet potato fritters. More recently, a steak and eggs dish was added, which has quickly become a best-seller.

Rusty Rabbit’s newest location is at 62 Majors Bay Road, Concord, NSW.

Waterfalls Cafe & Gallery - Mt Field National Park, Tasmania

Waterfalls Cafe & Gallery

Tucked inside Tasmania’s Mt Field National Park, Waterfalls Café & Gallery has been part of the visitor experience since 2012, when Rachel Power and her family moved from Canberra to take over the café and souvenir shop. With a focus on all things local, including staff, produce and artists, the business has grown alongside the park, helping boost visitation from 90,000 to more than 220,000 a year before the pandemic hit.

“Our COVID shutdown was the first time we had closed our business since taking ownership,” Power recalls. “It stung, but very quickly it turned into ‘where is the opportunity?’ We took advantage of a state government grant, knocked down walls, repainted and remodelled, and reopened to an excited public who had followed the journey online.”

Power’s COVID experience taught her to trust her gut instinct. “I saw the shift in customers and behaviour before the shutdown happened and moved to mitigate the negative results. I chose to be nimble when we reopened, which positioned us to take advantage of the opportunities as the world emerged.”

Rustic charm aside, Waterfalls Café is also growing into accommodation. “The existing product was tired and unable to cope with the growing numbers. Tour groups had nowhere to stay together if they had more than 4 people. We tried everything to get our accommodation started, everything possible, and rejection from lenders was all we faced,” says Power.

 “Thankfully, the Tasmanian Government recognised that regional businesses were being hampered by traditional lending and launched the Tourism Loan Scheme – our LAST chance. We were successful, allowing us to open our first 4 pods in 2023.”

The family’s long-held dream of opening Mt Field Retreat became reality in 2023 with four pods, and demand has been so strong that another eight are set to open this year.

Waterfalls Café & Gallery can be found at 90 Lake Dobson Rd, Mt Field, Tasmania

Adora Handmade Chocolates - Sydney, Multiple Locations

Adora Handmade Chocolates

Sydney’s dessert hounds can sniff good chocolate from a mile away – but what happens when they have surgical masks on? Adora Handmade Chocolates decided their solution was to level up and go hard on takeaway.

“In 2019, we made the decision to take our business to the next level,” says co-owner Tina Angelidis. After opening four stores over 25 years, she and her team felt they had developed a formula that worked, so they set to work and created their next five-year plan, which included opening another four stores.

Adora Oatley began to take shape by the end of 2019 – they planned to open in late February 2020. Then, in March 2020, COVID hit Sydney.

“Just as we were about to launch our biggest store to date, the new government restrictions came into effect, limiting operations to essential services only. I remember coming home and thinking I’d just lost everything I worked for over the past 25 years,” says Angelidis. “Thankfully, government support came through, and we were able to continue operating as takeaway only.” 

“Being in a suburban area, Oatley received strong support from locals who had started working from home. In fact, all our suburban stores performed well during COVID. Our city store, however, almost died – we were lucky that having that mix of suburban and city locations helped us ride out the storm,” she recalls.

In 2021, Adora opened two more stores: one in Croydon (another suburban area), and another in a new precinct in Sydney’s Circular Quay called Quay Quarter Lanes. They installed a hot chocolate tap there that Sydney knows well and loves.  

During this time, the Adora team also invested heavily in strategy and marketing, with one clear goal in mind: To become the best hot chocolate shop in Sydney.

Adora Handmade Chocolates has multiple locations across Sydney.

Fonda - Melbourne, Sydney, Canberra

Fonda

Fonda was established in 2011, when founders Tim McDonald and David Youl opened the first restaurant on Swan Street in Richmond. Since then, it has grown into a collection of vibrant casas across Melbourne, Sydney, and Canberra.

Inspired by the traditional Mexican ‘fonda,’ a family home that opens its doors to the community, Fonda serves accessible-premium Mexican food that’s fresh, fast, and full of energy. 

Signature dishes include the Baja Snapper Taco, Barbacoa Beef Burrito, and wholesome Burrito Bowls with red quinoa, black beans, and chilli mango crema. Fonda’s menus are designed to feel good and taste great, whether it’s a quick lunch, a shared fiesta with friends, or a big night out.

For Fonda, COVID was a huge reset. Co-founder and Director, David Youl says: Overnight, we had to shift gears, moving from packed restaurants to takeaway and delivery. It forced us to strip things back to what mattered most: great food, genuine hospitality, and keeping our team and community connected.”

According to Youl, the team has since doubled down on that energy: “We’re growing year on year because people are reconnecting with the things that make Fonda special: our fresh, feel-good menu, from the Tacos to the Burrito Bowls, and our playful, welcoming atmosphere. 

“Fonda has always been about ‘Mi Casa Su Casa’, our doors are open, our food is fresh, and our vibe is unmissable. The lockdowns reminded us why people fell in love with Fonda in the first place, and that’s the momentum we’ve carried forward.

Fonda owns venues across Sydney, Melbourne and Canberra.

Pallavi Mathur

pallavim9893@gmail.com

Pallavi Mathur is the founder and editor of Crumb Wire. She cut her teeth in PR before turning her lifelong passion for food into a full time gig. Pallavi brings readers a daily digest of what's hot in food and drink, covering restaurants, retail and features rooted firmly in food culture.

https://crumbwire.com/

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Mars turns the classic Mars Bar Slice into a supermarket snack

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Coles launches food relief appeal as millions face hardship

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Allen’s Green Frogs have returned along with a few long-lost friends

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