Backlash to Justin Hemmes’ Merivale in Melbourne: Hospo Insiders Speak Out

For the past four years, Justin Hemmes has been preparing to bring his Sydney-style empire south, snapping up heritage buildings, the Lorne Hotel and even a $60million CBD car park as part of an audacious Melbourne expansion.

Now, the city’s hospitality heavyweights are bracing for a fight on their home turf as the Merivale boss at last prepares to open his first Melbourne venue – LB’s Record Bar – in early October.

Of course, Melbourne’s hospitality heavyweights aren’t exactly rolling out the red carpet for bar tsar Hemmes.

We spoke to one well-placed industry insider, who told us: ‘Sydney flash doesn’t always translate in Melbourne – all gloss, no substance. The local hospo leaders will want to crush him like Starbucks.’

In Sydney, Merivale represents corporatised, big-budget hospitality: highly polished, design-heavy venues with mass appeal, high price points and a focus on scale. 

By contrast, Melbourne’s foodie scene values authenticity, experimentation and community-led venues.

Melbourne's hospitality heavyweights are bracing for a fight on their home turf as Merivale's Justin Hemmes (left, with Madeline Holtznagel) prepares to open his first Melbourne venue

Melbourne’s hospitality heavyweights are bracing for a fight on their home turf as Merivale’s Justin Hemmes (left, with Madeline Holtznagel) prepares to open his first Melbourne venue

‘We don’t need a Merivale import parachuting in with a cookie-cutter formula and thinking it’ll win over locals,’ adds our hospo source. 

‘Hemmes might impress tourists in Sydney, but Melbourne venues thrive on authenticity and community – not on shiny rooftops and overpriced cocktails.’

The city’s top operators are all fiercely protective of their turf, with few names looming larger over Melbourne’s dining scene than Chris Lucas – the celebrated restaurateur behind The Lucas Group. 

If Hemmes thinks he can drop in and own Melbourne’s laneways, Lucas would be the natural rival standing in his way.

With venues like Chin Chin, Kisumé, Society, Grill Americano and Yakimono to his name, Lucas is synonymous with some of the city’s most iconic dining destinations

He is also a staunch advocate for Melbourne’s food scene. 

After Society received the ‘World’s Best New Wine List’ award in 2023, he proudly declared that the news was ‘an affirmation of how Melbourne and its dining scene has become one the worlds truly most unique and important dining cities.

‘A lot has changed in Melbourne but our sense of hospitality and food culture remains as a constant.’ 

The city's top operators are fiercely protective of their turf, and few names loom larger over Melbourne's dining scene than Chris Lucas (pictured here with actress Margot Robbie)

The city’s top operators are fiercely protective of their turf, and few names loom larger over Melbourne’s dining scene than Chris Lucas (pictured here with actress Margot Robbie) 

With popular venues like Chin Chin (pictured), Kisumé, Society, Grill Americano and Yakimono to his name, Lucas is synonymous with some of the city's most iconic dining destinations

With popular venues like Chin Chin (pictured), Kisumé, Society, Grill Americano and Yakimono to his name, Lucas is synonymous with some of the city’s most iconic dining destinations

Hemmes is also preparing to go head-to-head with Melbourne’s former fine-dining golden boy Shannon Bennett. 

Bennett made his name with Vue de Monde, a Rialto Tower degustation restaurant that defined luxury dining for two decades.

He also runs the Vue Group, which includes The Lui Bar, Bistro Vue, Benny Burger and Café Vue. 

Although he has stepped back from daily operations, Bennett still casts a long shadow over Melbourne’s culinary scene.

Hemmes is moving into the territory of Camillo Ippoliti, Melbourne’s hospitality king who has ruled the city’s late-night scene for decades.

He is associated with Bar Bambi, Bond, Trak, Revolver Upstairs, Cookie and The Toff in Town, as well as the restaurant Magic Mountain Saloon. 

While Hemmes may bring Sydney polish – and deep pockets – Ippoliti has decades of experience serving local crowds and curating distinctly Melbourne spaces.

And lastly, Hemmes will have to contend with Maz Salt, the hospitality entrepreneur who helped redefine laneway culture through pioneering venues like Section 8, B.East and Ferdydurke.

Hemmes is also preparing to go head-to-head with Melbourne's former fine-dining golden boy Shannon Bennett (pictured)

Hemmes is also preparing to go head-to-head with Melbourne’s former fine-dining golden boy Shannon Bennett (pictured) 

Bennett runs the Vue Group, which includes The Lui Bar (pictured), Bistro Vue, Benny Burger, and Café Vue

Bennett runs the Vue Group, which includes The Lui Bar (pictured), Bistro Vue, Benny Burger, and Café Vue

Hemmes is moving into the territory of Camillo Ippoliti, Melbourne's hospitality king who has ruled the city’s late-night scene for decades. (Pictured: Ippoliti's Magic Mountain Saloon)

Hemmes is moving into the territory of Camillo Ippoliti, Melbourne’s hospitality king who has ruled the city’s late-night scene for decades. (Pictured: Ippoliti’s Magic Mountain Saloon) 

Salt is known for cultivating left-of-centre venues, thriving on grassroots culture and pop-up innovation – the antithesis of Hemmes and his Merivale mega-brand. 

But Hemmes has a clever tactic up his sleeve as he prepares to open LB’s Record Bar.

Rather than importing a Sydney-centric formula, he has teamed up with respected local operators Zara and Michael Madrusan (The Everleigh, Heartbreaker).

LB’s will also offer a vinyl-only music program showcasing Melbourne’s independent record stores.

Lastly, Hemmes will have to contend with Maz Salt, the hospitality entrepreneur who helped redefine laneway culture through pioneering venues like Section 8, B.East and Ferdydurke

Lastly, Hemmes will have to contend with Maz Salt, the hospitality entrepreneur who helped redefine laneway culture through pioneering venues like Section 8, B.East and Ferdydurke 

Pictured: A rock band performing at Salt's venue The B.East

Pictured: A rock band performing at Salt’s venue The B.East

‘We’re committed to a long-term investment in Melbourne’s hospitality scene and community,’ Hemmes told the Herald Sun

‘Opening our first venue here is just the beginning, and we’re grateful for the opportunity to collaborate with talented local operators like Zara and Michael on this project.’

Hemmes has been edging into Melbourne since 2021.

Through his Merivale empire, he has snapped up heritage buildings like Tomasetti House on Flinders Lane and Kantay House in Meyers Place, and bought the beachfront Lorne Hotel for $38million. 

More recently, he dropped $60million on a car park on Little Collins Street that he plans to transform into a multi-level playground of bars, restaurants and nightlife. 

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