Extravagant dessert retailer Nuts About Tella collapses amid ongoing pain for food operators

Nuts About Tella

UPDATE: Nuts About Tella has emerged from voluntary administration and is expanding with the addition of a new brand. Read about it here.

Melbourne-based dessert-pizza retailer Nuts About Tella has become the latest dessert-focused retailer to fall victim to tough times, appointing voluntary administrators late last week.

Glenn Spooner and Sam Kaso of Cor Cordis have been appointed as administrators of the almost three-year-old business, which has two stores and a mobile food truck in Melbourne.

It comes less than a month after the collapse of Max Brenner, signalling ongoing pain for fast-food operators amid changing consumer habits and increasing costs.

Nuts About Tella was established in 2015 as a trendy brand looking to capitalise on renewed demand among millennials for high-quality dessert options, while also selling burgers and fries.

It has a store within La Trobe University’s Bundoora campus and another location in north Melbourne suburb Brunswick.

The Brunswick store, which was a longstanding ‘pop up’, recently closed, with the business telling customers on social media it was hoping to make the store permanent.

Nuts About Tella also trades through meal delivery platform Uber Eats and a roaming food truck.

It is unclear whether administrators are pursuing a sale of the business, and neither Spooner or Kaso responded to requests for comment on Monday morning.

The administration comes amid ongoing difficulty for food and beverage retailers across the country, with complaints about fast-changing consumer habits and rising rental costs.

Max Brenner, which operates dozens of chocolate cafes in Australia, is currently on the market after falling into administration last month, blaming sluggish sales and rising costs.

Queensland University of Technology associate professor Gary Mortimer told SmartCompany in October demand for healthy food was creating issues for operators trying to sell fast food and dessert.

“Consumers are looking for healthier alternatives, less sugar, less fat,” he said.

“While there will always be a market for hot chocolate and waffles, the market continues to contract (a little like soft drinks).”

SmartCompany contacted Nuts About Tella for comment but did not receive a response prior to publication.

This story was updated on November 29 at 12:44 PM to reflect our updated coverage on the future of Nuts About Tella.

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