'Wollongong is dead': Xandu by Ziggys on Keira Street set to close permanently

Co-owned by Steen and Kevin Zhou, the duo said the economic downturn post-COVID was partly to blame for the decision to close their Keira Street eatery, as was the rising cost of food and electricity.

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"Business is really bad," Steen told the Mercury.

"Let's face it, Wollongong is dead. No-one is working from the office anymore."

He said trade in the evenings wasn't "too bad", but they were barely scraping by during lunchtimes which used to have a roaring trade.

The sky-rocketing cost of living was also to blame with the price of oil going from $35 to a "crazy $82", he said.

The duo originally operated dumpling outlet Ziggy's House Of Nomms next door on Keira Street, and expanded to take on another double shop-front for Xanadu in December 2019.

"We barely had three months of raging success before getting whacked in the forehead [with the pandemic]," Steen said.

The Nomms eventually closed its doors for good, with the pair to focus on Xanadu, but everything they tried didn't revive their business.

The region's business lobby boss Adam Zarth said hospitality businesses were still struggling around the region for a number of reasons.

"We are completely familiar and dismayed when we hear stories from time to time from shops in the industry who are doing it tough," the Business Illawarra Executive Director said.

"At end of the day, if we want these great restaurants we love to survive we have to support them."

Mr Zarth said while retail outlets around Wollongong were doing favourably, hospitality still had the issues of staff shortages and the rising cost of groceries.

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"Across the city we do see some contrasting experiences because a lot depends on location, the time you're opening, what type of service you're offering and who is around at the time," he said.

"We've also noticed major events are bringing in some great business but [the city] still don't have enough of them, so we need to work on how to build on those successes."

Steen said he and Mr Zhou had been mulling over their decision for weeks with their lease end-date looming on March 1, but decided "now was the time" to say goodbye.

The restaurant's last day of trade will be Sunday February 26, while they will no longer be accepting Uber Eats or Menulog orders.

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