Sydney's Iconic Double Deuce Lounge Closing: Post-COVID Bar Crisis Hits CBD Hard (2025)

The vibrant pulse of Sydney's nightlife is changing, and the iconic Double Deuce Lounge, crowned Bar of the Year, is feeling the shift. The once-bustling Bridge Street location is preparing to serve its final drinks, a stark reminder of the evolving landscape of the city's hospitality scene. But why is this happening? Let's dive in.

It's not just Double Deuce; other notable establishments are also exiting the northern CBD precinct. Allta, a chef-hatted Korean fine-diner, has relocated to Surry Hills, and Kitchen by Mike, a long-standing restaurant on nearby Bent Street, has closed its doors. This exodus paints a clear picture: the post-pandemic world has reshaped how we work and play, impacting businesses that once thrived on the energy of the city.

Double Deuce co-owner Sebastian “Cosmo” Soto candidly shares the challenges. "Friday afternoons, I’m scratching my head," he admits, referring to the noticeable drop in late-week trade. The rise of remote work has fundamentally altered the rhythm of the city. "Friday used to be our bread and butter… it hasn’t been the same since COVID."

Faced with this new reality, Double Deuce is adapting. They're seeking a new location in the Sydney CBD, focusing on a smaller, more manageable operation with lower rent. They plan to remain at their Bridge Street location until their lease concludes, likely closing in late December.

The award-winning Double Deuce, named after the bar in the Patrick Swayze film Road House, embodies the struggle of hospitality businesses adjusting to fewer peak days. "People say Thursday is the new Friday, but it’s not [at that level]," Soto notes. With Friday trade shrinking by as much as a third, the lost revenue could have covered significant costs, such as an additional staff member's wages or a portion of the rent.

But here's where it gets controversial...

Kitchen by Mike, founded by former Rockpool head chef Mike McEnearney, once envisioned high-volume traffic in the Sydney CBD. However, the shift in post-COVID trade patterns became apparent. McEnearney observes that CBD operators are now intently focused on the occupancy rates in the surrounding office towers, especially on Mondays and Fridays, when remote work is most prevalent. He acknowledges the trend, stating, "If I could work from home I would."

While Kitchen by Mike still sees strong business from Tuesday to Thursday, a three-day-a-week model wasn't sustainable for a lunch-focused operation. They are adapting, with plans to open a new location at the National Gallery of Australia in Canberra in mid-2026. McEnearney sums it up: "The city has changed over the past few years and, as always, we’re moving with the times."

Allta, the Korean fine-diner, also recognized the shift. Although they don't depend on spontaneous business lunches or after-work crowds, their move from Bridge Street to Surry Hills was driven by the changing CBD environment. Anece So, Allta’s chief business officer, explains, "The city, particularly on weekends, has become quieter than it once was, and Surry Hills offers the foot traffic and vibrant atmosphere we need."

Allta, under the guidance of Jung-Su Chang, a former executive chef from the acclaimed Seoul fine-diner Jungsik, earned two chefs’ hats in last year's Sydney Morning Herald Good Food Guide Awards. Their move to Surry Hills allows them to expand and offer a more accessible dining experience. So explains, "Our new space is significantly larger, allowing us to reduce the cost of our menu and make our two-hat degustation experience more accessible to a broader range of diners."

And this is the part most people miss...

As Double Deuce prepares to close its Bridge Street location, Soto hopes for a pre-Christmas surge in business. Like many in the hospitality industry, he hopes for support from big businesses and the return of more workers to city buildings. He reminisces about the exciting atmosphere of Friday nights, when the lounge would fill up quickly. "On Friday, I used to get a bit nervous," Soto admits. However, he remains optimistic about the future, saying, "It was probably time, [it will] vibe all the time."

What do you think? Are you seeing a change in the vibrancy of Sydney's CBD? Do you think the shift to remote work is permanent, or will we see a resurgence of the city's nightlife? Share your thoughts in the comments below!

Sydney's Iconic Double Deuce Lounge Closing: Post-COVID Bar Crisis Hits CBD Hard (2025)

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