It's buzzing most weeknights, impossible to find a park, and a hotspot for coffee, food and fancy consumer treats. But Braddon business owners have a different story to tell about their past year in trade.
They're cautiously optimistic about the year ahead, yet for many, 2023 was dismal.
When inflation and high interest rates start to bite, it's places like Braddon, filled with designer clothes and homewares, fancy flowers and chic bistros, that often feel the pain first.
'Dining out is a luxury'
Tony Lo Terzo, owner of The Italian Place Providore and Bottega, said 2023 was a tough year.
"Eating is a necessity but dining out is a luxury. [It's] very first place where people start trying to save money," he said.
"A lot of my clients who used to come every week, started coming once a fortnight, then once a month."
"The restaurant suffered."
Mr Lo Terzo said traditionally in winter, business fell by between 15 to 20 per cent but that last year the restaurant saw a drop of more than 30 per cent.
The business also went into voluntary administration last July but Mr Lo Terzo said this was due to management issues and lasted only a month. He said things were now looking up and bookings at the restaurant were increasing.
Meanwhile, to ensure the neighbouring deli survived, Mr Lo Terza has also been restructuring the shop.
The deli specialises in imported Italian goods but will now be offering more necessities in response to the rising cost of electricity, insurance and transportation of imported goods.
"We are going to be more of a mini-mart type of things, start selling milk, start selling sugar," Mr Lo Terza said.
"Around here it's all apartments and we get asked for things which we have not sold in the past. You need to adjust, reinvest sometimes."
Dave Donoghoe, the owner of Trilogy Skateboards, told The Canberra Times last month that 2023 has been "the worst year" for the business, with trade down by more than 25 per cent.
Openings and closures
Several traders shut their doors in Braddon last year, including popular Lonsdale Street bar Tipsy Bull and Enigma Fine Chocolates.
The Australian Bureau of Statistics figures show that the rate of growth in Braddon has been on the decline in recent years.
According to the bureau, there were 798 business operating in the suburb at the end of last financial year, up from 747 at the start.
That figure factors in openings and closings over the course of the financial year, translating to an overall growth of 6.8 percent, the lowest rate since the 2020-21 financial year.
But the number of business openings nevertheless outweighed the closures.
Among them was Pawparazzi Pet co-owner Zoe Ren, who opened the pet supplies and grooming boutique mid-2023.
"If we can survive in a tough year, that means we will be successful in the future," she said.
Ms Ren said while it was initially difficult building clientele, business has recently picked up. Some businesses bucked the trend last year.
Chez Freds owner Sara Poguet said she saw an increase in trade last year, something she attributes to keeping menu prices steady and making up margins in other areas.
At the same time, Ms Poguet said her business hasn't been immune to price hikes from suppliers.
She said some of her regular seafood orders have become unavailable, with suppliers offering an alternative at three times the cost, forcing her to drop some items from the menu.
It's a sentiment echoed by Barrio cafe owner Dan Zivkovich.
His business didn't see a downturn but wage rises, inflation and rising food costs made it more difficult to operate.
Mr Zivkovich said while he was looking cautiously at the next year, he was also planning on investing more in the business.
"Given the inflation situation, we kind of strapped our boots and stayed a little bit safe in that area so this year we'll probably invest more in the business and that includes probably a small refit of our spaces ... and maybe offering more contracts, permanent positions [to staff].
"Things that maybe were a bit scary a year ago, we'll probably loosen up a little bit."
'Bunch of things collided'
Braddon's United Retailers and Traders spokesperson Kel Watt said businesses started to see a post-pandemic recovery in 2022 but last year "a whole bunch of things collided".
"Interest rates went up, local public [servants] are still working largely remotely ... throw in the online revolution in ... that took over," he said.
He said a lot of the businesses structured themselves around the federal and territory public servants working from the city centre and remote workforce model was now "depriving businesses of a set up they had previously".
Canberra Business Chamber chief executive Greg Harford said that across the board, the capital boasted the highest rate of new businesses starting per capita but also the highest number of business closures.
"We've got good entrepreneurial spirit in Canberra, unfortunately there's a lot of those businesses that just don't survive," he said.
He added that the particular mix of businesses in Braddon, which include a large number of owner-operated and niche traders, often target a discretionary dollar and are more exposed compared to a shopping centre housing national brands.
Mr Harford expects the next few months to be challenging, but added a lot will hinge on decisions by the Reserve Bank on interest rates.
