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- Emperor’s Garden has agreed to repay more than $1 million in unpaid tax to the ATO, with about half already paid.
- The business is now in talks to return to its Hay Street site and reopen the Chinatown restaurant and bakery.
- The 16-storey redevelopment planned for the site has been paused, while the sale of the Emperor’s Garden BBQ & Noodles building on Thomas Street will fund part of the tax debt.
Emperor’s Garden has been part of Sydney‘s Chinatown for 47 years, pumping out cheap little pastries straight from the window, an iconic store that satisfied many a late-night craving for locals and tourists alike. But if you’re craving an Emperor Puff, you may soon need to cough up considerably more than your usual loose change. The Chinatown institution has now agreed to repay more than $1 million in unpaid tax, with about half of that debt already paid.
But with the eatery previously charging eight puffs for five bucks, the company would need to sell well over 1.6 million cream puffs just to cover a $1 million tax debt.
The good news for Sydneysiders is that the situation now looks a little less terminal than it did when the shutters first came down. According to the ABC, the famous Hay Street restaurant and bakery remains closed, but chief financial officer Valentine Yee says the business has reached a repayment agreement with the ATO and is now negotiating to return to the site.
They Owe How Much?
Although the bill sitting on the table has grown beyond $1 million, Yee says roughly half has already been paid, with part of the remaining debt to be funded by the sale of the Emperor’s Garden BBQ & Noodles building on nearby Thomas Street.
Back in August, the ATO had applied to wind up Emperor’s Garden Pty Ltd over $845,133.11 in unpaid tax. A demand was reportedly sent to the business in March, while a notice attached to the shuttered shop at 98–100 Hay Street said the premises were “lawfully re-entered and possession taken” on 2 August, with the locks changed.
Yee now says that repossession was part of a family disagreement over how best to deal with the ATO action. His cousin, Lance Lai, pushed for the company to enter voluntary administration, while owner Stanley Yee preferred another approach.
Someone had to claim that little machine that makes the cream puffs. I’m still hoping we get to see it spinning again.
Is Emperor’s Garden Actually Closing?
Maybe not. A post on the restaurant’s Instagram page said the restaurant and bakery were taking a “small break” and “we’ll be back soon”, and the latest update suggests that may still happen. Yee says discussions are underway with Lai to return to the Hay Street site and reopen the restaurant.
There is no reopening date yet, but Stanley Yee reportedly wants to keep running the business until it reaches 50 years. Yee also said the restaurant struggled through the George Street light rail construction, COVID and cost-of-living pressures, and simply couldn’t pay the tax debt quickly enough to stop the ATO action.
Honestly, it’s Chinese Noodle House all over again. Are they closed? Are they coming back? And where am I supposed to get my fix now?
As for what happens to the Hay Street site, there’s another wrinkle. It already has conditional approval for a major 16-storey mixed-use redevelopment, although Yee now says those plans have been paused until the family believes the timing is right.
For now, the shutters are down and the cream puffs are still off the menu, but with half the tax debt reportedly paid and talks underway to return to Hay Street, Emperor’s Garden suddenly has a much clearer path back than it did in August. Fingers crossed we’ll all be able to celebrate their 50th anniversary with a bundle of cream puffs.
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