Spanian's Kebab Chain Faces Closure Amidst Customer Complaints and Expert Scrutiny
A retail expert points to fundamental flaws in the business model as a flagship Sydney outlet closes after only eight months.
Spanian's, the fast-food kebab chain founded by YouTube personality Anthony Lees, commonly known as Spanian, has reportedly closed its Newtown, Sydney outlet after just eight months of operation. The closure comes amid a flurry of customer complaints regarding food quality and alleged issues with store hours.
The Newtown store, which opened in January on a notoriously competitive hospitality strip, is now listed as temporarily closed. Social media comments suggest the closure has been in effect for about a week, a development that follows recent reports of the venue struggling to attract customers despite its initial fanfare.
The rapid decline of the Newtown outlet raises questions about the broader business model of Spanian's Kebabs, which operates on a franchise system. Franchisees reportedly pay between $250,000 and $350,000 plus GST for the rights to operate under the brand, in addition to covering operational costs like rent and staffing.
Retail expert Barry Urquhart described the eight-month lifespan of the Newtown store as "remarkably short," indicating potential "fundamental flaws in the strategic structure" of the business. He suggested that relying on influencer marketing and initial novelty is insufficient for sustaining a hospitality business. "There is always a fine line between arrogance and ignorance, and a lot of arrogant people are unknowingly ignorant of the realities of the market forces," Urquhart told the Daily Mail. He emphasized the importance of repeat business and customer loyalty, arguing that Spanian's Kebabs has failed to establish a distinctive market position.
Customer feedback on social media has been largely negative, with criticisms directed at food quality and operational issues. One customer claimed they were refused service at the Gosford outlet because staff had not been paid for a month, while another reported the Newtown store failed to open at its advertised time. Concerns about the food have also surfaced, with descriptions like "worse kebabs ever" and "soggy, ranky mess" appearing online.
Amidst these challenges, Spanian has pushed back against claims of widespread store closures and franchisee dissatisfaction. He suggested that food trucks associated with the brand are simply relocating to more advantageous spots. He also stated that three new stores are planned, including locations in Brisbane and Melbourne.
Spanian, whose real name is Anthony Lees, has a complex public persona. Previously incarcerated for offenses including armed robbery and drug supply, he reinvented himself after his release in 2017 with a successful YouTube series exploring crime-ridden neighborhoods. His transition to a businessman and entertainer has been marked by a significant shift from his past as a figure associated with Sydney's "eshay" subculture.
The hospitality sector in Australia is currently facing significant headwinds, with reports indicating a high rate of business closures. Experts suggest that franchises, in particular, can be vulnerable when heavily reliant on a single brand or supplier.
Spanian's Kebabs currently lists outlets in Gosford, Kogarah, and Macarthur Square in New South Wales, though some previously listed food truck locations are no longer active.
