In the bustling city of Melbourne, Australia, a tale of entrepreneurial struggle and departure unfolds, leaving behind a trail of questions about the future of the city's economic landscape. The story centers around Laurent Bakery, a once-thriving cult bakery empire valued at a staggering $800 million, now facing a dramatic downsizing. This isn't just a tale of a business's decline; it's a reflection of a broader trend of businesses leaving Melbourne due to high rents, crime, and a tax system that seems to be working against them. But what does this mean for the city, and what insights can we glean from this situation?
The Fall of a Bakery Empire
The Laurent Bakery, known for its upscale offerings in affluent suburbs, is set to close five of its 17 stores, including its CBD location. The decision comes from the founder, Laurent Boillon, who, at 62, has seen his empire rise from a humble $400 startup to a $800 million behemoth. However, he now cites high rents and crime in Melbourne as the primary reasons for scaling back. Boillon's words, 'I can’t be bothered, it’s too hard', ring with a sense of resignation and frustration, reflecting the challenges many businesses face in the city.
The Broader Trend of Business Departures
Boillon's story is not an isolated incident. The Business Council of Australia's chief executive, Bran Black, notes that Victoria is sending a clear message to the rest of the country: 'Wrong way - Go back'. This sentiment is echoed by business owners and developers who are walking away from generational projects due to major tax and crime concerns. The land tax bill for a 17-hectare site, for instance, has skyrocketed from $8703 in 2015 to $203,600 in 2025, as Angie Romas, a factory owner from Dandenong, pointed out. This trend is not just about the cost of doing business; it's about the perception of Victoria as a place where it's increasingly harder to thrive.
The Impact of Crime and Red Tape
Crime rates in Victoria, particularly youth crime, have been on the rise, with retail theft being a significant contributor. This has led to businesses like Ritchies, a supermarket chain, facing daily incidents of violence. The CEO of Ritchies IGA, Fred Harrison, has stated that crime has reached a 'crisis point', prompting questions about the viability of remaining in certain areas. The impact of crime and red tape is not just financial; it's psychological, affecting the overall well-being of business owners and their employees.
The Psychological Impact
The psychological toll of living and working in a city plagued by crime and high taxes cannot be understated. Business owners like Moustafa Saoud, the owner of Eleven: 11 cafe in Buckley Street, Footscray, are giving up on their dreams due to brutal and unprovoked attacks. The constant fear and uncertainty can lead to a sense of helplessness and despair, affecting not just the business but the entire community.
The Future of Melbourne
The departure of businesses like Laurent Bakery and the concerns raised by other business owners raise important questions about the future of Melbourne. Is the city becoming a less attractive place for businesses to invest and thrive? What does this mean for the local economy and the community? The answers to these questions are not straightforward, but they are crucial for the city's future.
Personal Reflection
From my perspective, the story of Laurent Bakery and the broader trend of business departures in Melbourne is a wake-up call for the city. It highlights the importance of addressing high rents, crime, and a tax system that seems to be working against businesses. The psychological impact of living and working in such an environment cannot be ignored. As a city, we need to ask ourselves: What are we doing to create a more welcoming and supportive environment for businesses and residents alike? The answers to these questions will shape the future of Melbourne and the experiences of those who call it home.
