Sydney bagel chain forced to spend $23,000 after council orders window changes

A Sydney bagel chain owner says she was forced to spend AU$23,000 and close a shop for a day after Randwick Council ordered the removal of newly installed canteen-style windows that the council deemed non-compliant.

Candy Berger, owner of Lox in a Box, said the council told her last year to revert to the venue’s original bifold windows by Sept. 15 or face closure, arguing the canteen-style windows presented a safety risk and intruded on public space. Berger said the direction followed a complaint that the work was not development-approved.

Berger, who has opened four Lox in a Box locations across Sydney, said she spent AU$8,000 replacing the windows and a further AU$15,000 on a certifier and a development application to meet the council’s requirements. She said the shop lost an additional day’s trade while the work was carried out. Berger has previously invested about AU$400,000 in renovations to the site.

The incident highlights wider frustrations among small and medium-sized businesses in New South Wales over planning and compliance processes. Research from Business NSW cited by the owner found 72% of cafés, bars and shops now consider existing regulations “too demanding,” up from 53% two years earlier. The organisation said small businesses often spend up to 20 hours a month on compliance, while larger firms can spend up to 40 hours a week.

Business NSW Chief Executive Officer Daniel Hunter said development application fees and related compliance costs are a “massive financial drain on small businesses,” adding that owners are not seeking less accountability but want a “fairer and simpler system” that reduces time spent in red tape.

A recent Productivity Commission assessment found businesses can spend up to AU$38,360 on applications and forms when opening, including plans for management, owner consent, consultation fees and environmental impact statements. Productivity Commissioner Peter Achterstraat AM warned policymakers that the cumulative costs and complexity of the planning system can discourage investment and constrain trading opportunities.

Berger described the council’s order as unnecessary and said the canteen-style windows had improved the look of the street and the venue’s street presence. She told the Daily Telegraph the action had been prompted by a community complaint and expressed frustration at the financial and operational impact.

Randwick Council has said it considered the windows a safety concern and an encroachment on public space in its notice to the operator, according to the owner. The Daily Mail, which first reported the story, said it contacted Randwick Council for comment.

The case reflects broader tension between local planning controls and small business owners seeking to modernise shopfronts or expand takeaway trade, and it underscores the potential regulatory and financial consequences when modifications are determined to be non-compliant. Businesses and industry groups have called for streamlined processes and clearer guidance to reduce uncertainty and the cost of compliance for small operators.

Daily Mail has contacted Randwick Council for comment.