Lunetta Restaurant Thrives Amid Canberra's Hospitality Challenges
Perched high on a hill, away from the city's hustle and the disruption of roadworks, a high-end restaurant might easily struggle to survive. Yet Lunetta, located just minutes from Manuka and Kingston's commercial hubs, is defying Canberra's restaurant downturn with remarkable success.
A Destination for Milestones and Casual Dining
While outsiders might view Lunetta as an isolated venture, true Canberrans recognize it as part of a cherished tradition. The Red Hill establishment serves as a destination for life's significant moments—weddings, anniversaries, graduations—while also offering casual trattoria dining downstairs with spectacular views across the capital.
The current climate presents undeniable challenges for Canberra restaurants, particularly at the premium end. Several high-profile closures in recent years, including Carlotta and Bada Bing, highlight the industry's volatility. However, owner Tracy Keeley maintains a forward-focused philosophy, avoiding comparisons with other establishments.
"I think everyone's just really, really busy," Keeley observes. "We are all trying. If you compete externally, you focus energy on comparisons. But if you compete internally—asking what we're doing and how we can improve—then you grow and improve."
Historical Roots and Family Operation
Lunetta has operated for just over a year, bringing Italian cuisine to the distinctive dodecagon building that has crowned Red Hill since the early 1960s. The Vidovic family originally built and operated the venue for nearly six decades, commissioning renowned architect Enrico Taglietti in 1981 to create futuristic bay windows "in the style of 2001."
After running The Carousel restaurant until the late 1980s and leasing to subsequent operators, the property changed hands following the Vidovics' passing. The Keeley family purchased it in 2023 for $2.25 million, undertaking extensive renovations while preserving the iconic facade.
Keeley operates Lunetta with her sons Nicholas and Matthew, applying principles from her other ventures while recognizing their place in Canberra's established landscape. Her hospitality journey began after teaching at St Bede's in Red Hill, with ventures including Cafe Momo in Bruce, Bookplate at the National Library, and Pollen at the Australian Botanical Gardens.
"We are essentially a family, and that means something in hospitality," Keeley explains. "Our venues are like extensions of our homes, so we aim to make them as approachable as possible. We try to be part of Canberra's context—I've lived here 50 years, and my sons are Canberra-born."
Navigating Risks and Rewards
Operating a destination venue rather than relying on foot traffic presents unique challenges. While Lunetta avoids direct competition with precinct-based eateries, it requires deliberate customer discovery and booking decisions. This approach also sidesteps issues plaguing Canberra's CBD, where major infrastructure projects have impacted once-vibrant strips.
Economic pressures have made dining out a discretionary expense many households reduce. Yet Lunetta's elevated position—both geographically and in market positioning—has proven advantageous. As in many of Canberra's affluent suburbs, a significant demographic remains relatively insulated from economic fluctuations, sustaining the restaurant's patronage.
"I see it full of optimism," Keeley says of her hospitality segment. "People have more leisure time and want to connect in beautiful spaces. I see promise, growth, and opportunity."
Leadership in a Male-Dominated Industry
Keeley acknowledges the scarcity of women leading high-end restaurants but consciously avoids making gender her focus. Instead, she emphasizes leadership style, collaborating with her sons and staff team.
"I've been very conscious not to let gender become the headline of my work, even though it's shaped my operating context," she notes. "Hospitality is demanding for everyone. As a woman, I learned early that clarity, consistency, and quiet authority mattered more than volume."
Without traditional mentors, Keeley drew inspiration from women in other industries, observing how they carried authority, made decisions, and communicated effectively. These observations fundamentally shaped her approach to leadership and responsibility in the competitive restaurant landscape.
