Beloved Sydney dessert bar franchises collapse (2025)

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Two franchises of a beloved dessert chain have gone into liquidation owing tens of thousands of dollars of debt.

Tella Balls' Penrith and Liverpool stores in westernSydney appointed liquidatorSteven Naidenov from Aston Chace Group on Tuesday.

The six other Tella Balls stores, which are famous for their donut-based sweets, have not been impacted.

Describing itself as the sweetest place on earth, the chain's Nutella-filled doughnuts and their signature milkshake became a staple for Sydney foodies after opening their doors a decade ago.

Preliminary investigations revealed creditors of Tella Balls Penrith are owed in more than $50,000, the Daily Telegraphreported.

It's understood a dispute with the landlord worsened the stores' financial woes.

Aki Daikos and Simon Kappatos created the Instagram-famous business following Mr Kappatos' successful cafe Foodcraft Espresso in inner-city Erskineville.

The pair worked together for 14 years before setting up Tella Balls, which is focused on quality and authenticity.

'We have travelled quite a lot and what we wanted to do here is to create a European inspired dessert bar where you can watch everything be made in front of you, from the crepes and waffles, to the fresh gelato out the back,' Mr Daikos previously told Daily Mail Australia.

'This has been our dream. We really have a vision to create an authentic experience and can not wait to open our doors.'

All crepes, waffles and pancakes are made on site and eachmonth, the cafe featured a new menu item, created and tasted by Mr Daikos and Mr Kappatos.

'It is not a meal replacement by any means but we all love work hard and deserve a cheat day every now and then,' he said.

'Who counts calories when you’re having dessert anyway? Where's the fun in that?'

Fans were disappointed to learn about the store closures.

'That's what happens in high inflation/cost of living times, discretionary things like desserts are bought less often and then the shops can't pay their rent,' one wrote.

The news of Tella Balls' liquidation comes just one day afterFox Friday Craft Brewery announced it had entered voluntary administration.

The company started as a nano-brewery in the Hobart suburb of Moonah six years ago but has since grown to open venues across the city as well as Melbourne and Perth.

In another hit to the hospitality sector, Collins Foods announced it would be selling its Mexican fast food chain Taco Bell.

The ASX-listed company, which also runs KFC stores across the country, announced the news on Tuesday and aims to finalise its plans within a year.

'Collins Foods has decided to exit its Taco Bell business,' a release published on the ASX stated.

'If a new operator cannot be identified and/or an agreement cannot be reached, other exit options will be explored.

'Collins Foods intends to complete the transition within the next 12 months, subject to formal terms being agreed.'

Further details, including the cost of selling off the Mexican-themed chain will be released further down the line.

Industry experts expect the bloodshed to continue as high operating costs and upward price pressures force out hospitality operators.

Sydney

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