Historic Canberra Restaurant Battles for Survival as Light Rail Construction Deters Diners
The owner of one of Canberra's oldest and most iconic dining establishments has issued a desperate plea, revealing that the venue may not survive ongoing light rail construction works that have severely impacted customer access and revenue. Charcoal Restaurant, which is approaching its 64th anniversary in March, has been a fixture in the capital's hospitality scene since 1962, but owner Anna Gray now fears its future is in jeopardy.
Construction Chaos Creates Customer Exodus
Anna Gray, who has owned the restaurant for a decade, described the light rail works on London Circuit as a "disaster" for her business. The situation deteriorated significantly in January when Northbourne Avenue closed, compounding problems that began almost a year earlier with the commencement of construction. The ever-changing road closures and shutdown of several city car parks have created a perfect storm of accessibility issues, discouraging the restaurant's loyal clientele of lawyers, politicians, and business professionals from visiting.
"I don't think we're going to survive," Ms Gray stated bluntly. "I only look at [the construction] in desperation through the windows of the restaurant." She detailed how customers frequently cancel reservations after struggling to find parking, with this occurring particularly often during evening service. The restaurant's reopening after the Christmas break on January 14 failed to generate enough revenue to cover basic staff costs, and a week later, only four people attended lunch with just eight dinner bookings from a possible fifty.
A Canberra Institution Under Threat
Charcoal Restaurant represents a living piece of Canberra's history, having operated from the Melbourne Building with remarkably few changes since its opening. The venue retains its original character with red leather chairs from the 1970s and bottles of Penfolds Grange wine dating back to the restaurant's early years. Ms Gray, who immigrated from Poland to Australia in the 1980s and has lived in Canberra for nearly forty years, faces the heartbreaking prospect of closing this cultural landmark.
The restaurant's current lease concludes in March 2026, with Ms Gray planning to continue on a month-to-month basis if the business survives that long. However, the financial realities are stark. The closest available parking is now at the Canberra Centre, requiring a ten-minute walk through construction zones, with only a dozen spots remaining in nearby Hobart Place. This accessibility crisis has fundamentally altered the dining experience for patrons.
Broader Business Impact and Compensation Calls
The challenges facing Charcoal Restaurant reflect wider issues affecting businesses along London Circuit's western side. Stage 2A of the light rail project, extending from Alinga Street to Commonwealth Park, is scheduled for completion in 2028. Construction has progressively closed sections of London Circuit since February 2025, followed by the Theatre Lane and ACT Courts car parks.
Ms Gray and other affected business owners have been advocating for government compensation to offset their losses for over a year. While the ACT government has offered marketing support, business advice, and free parking, many proprietors consider these measures insufficient. Some businesses are even exploring potential class action proceedings against the government for lost revenue, a move bolstered by a December 2025 High Court decision that overturned a ruling denying compensation to businesses impacted by Sydney's light rail project.
This precedent offers a glimmer of hope for Canberra's struggling enterprises, but for Anna Gray and Charcoal Restaurant, the immediate future remains uncertain as they navigate the difficult balance between preserving history and surviving present challenges.
