1 March, 2026
historic-downtown-cafe-in-canberra-closes-after-nearly-a-century

Another chapter of Canberra’s storied history has come to a close as the Downtown Cafe, a beloved establishment in the heart of Manuka, shut its doors for the final time this week. The cafe, which has been a staple of the community since the 1920s, leaves behind a legacy of cherished memories for generations of locals.

Originally known as the Downtown Milkbar, the cafe was a popular destination for moviegoers from the Capitol Cinema, who would cross Franklin Street for a post-show coffee. It was also a favorite spot for schoolchildren seeking milkshakes and sweets after a long day of classes. Despite the growth and transformation of Canberra over the decades, the arcade area where the cafe resides has retained much of its traditional charm.

The Rise and Fall of a Local Icon

As Canberra expanded and Manuka transitioned from a bustling city center to a more suburban area, the Downtown Cafe managed to maintain its old-school Greek milk bar vibe. However, the emergence of numerous cafes and bars in the vicinity posed challenges for the cafe’s sustainability. Owner Angelo Petridis, who also runs My Cafe across the street, acknowledged the difficulties of keeping a sandwich shop viable amidst changing consumer preferences and economic pressures.

“It’s bittersweet,” Petridis remarked about his decision to close the cafe. “Lots of people tell me they used to come here after school for milkshakes.” Despite the nostalgia, Petridis noted that sandwich shops had fallen out of favor, and the business was becoming increasingly hard to sustain.

“It’s not really very rewarding,” he said. “Trends change – working from home is a thing since COVID, and cost of living is an issue. It’s a weak trading environment.”

Economic Pressures and Changing Trends

In recent years, the cafe faced significant rent increases, with the current rate reaching $128,000 annually. This financial strain, coupled with a prolonged hotel development project across the street, contributed to the decision to close. Petridis expressed hope that a new type of business, such as a high-end bakery, might take over the space, drawing a parallel to Kingston’s popular Silo Bakery.

“I hope it’s something like that, because we do feed off each other,” he said, emphasizing the importance of complementary businesses in revitalizing the area.

A Legacy Remembered

The closure of the Downtown Cafe marks the end of an era for many Canberrans who fondly recall their visits over the decades. The cafe’s history is intertwined with the social fabric of Manuka, a reminder of a time when the area was the bustling heart of the city. As the community reflects on this loss, there is a sense of nostalgia for the simpler times the cafe represented.

Looking forward, the hope is that new businesses will continue to honor the spirit of Manuka’s historic arcade, blending tradition with modernity to create vibrant spaces for the community. As Petridis turns his focus to My Cafe, he remains optimistic about the future, recognizing the need for adaptability in the ever-evolving landscape of the hospitality industry.

The closure of the Downtown Cafe serves as a poignant reminder of the delicate balance between preserving history and embracing change. As Canberra continues to grow, the stories and memories of places like the Downtown Cafe will remain an integral part of the city’s cultural heritage.