Burger bust: popular takeaway shop evicted, former employees seek super

A WELL-KNOWN Newcastle burger shop has been evicted from its shopfront and slapped with notices to repay thousands in employee superannuation.

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Newy Burger Co has shut up shop.

Newcastle Herald has confirmed with the managing agent Four Walls Commercial that the business, owned by Shantanu and Anu Karn, has been evicted from its Hunter Street premises, with the landlord taking back possession of the site from February 5.

The business's website is no longer taking orders, the social media accounts have not been updated, the phone number has been disconnected and the email address produces only a failed-to-send bounce-back email.

Despite the signs of financial trouble, Newy Burger Co, which operates under the company name Aadhyansh Enterprises, is still a registered business according to the Australian Securities & Investments Commission.

Newy Burger Co was established in 2014 after an experienced chef said he was frustrated at not being able to find a really good burger.

The business rapidly expanded and at one point included multiple sites and a food truck. It was sold several years ago to the Karns.

The business was again listed for sale in January this year for $145,000 but after the Herald contacted the commercial broker, the listing was removed.

"Founded in 2014 by passionate Novocastrians, Newy Burger Co was created with a simple mission: serve crave-worthy, feel-good burgers using quality ingredients - and Newcastle locals responded in force. Today, this much-loved brand is firmly established and now offered for sale," the listing said.

"Operating from its highly visible Hunter Street location, the business is sold as a complete, walk-in-and-operate opportunity. The sale includes the restaurant fit-out, strong brand identity, all intellectual property, website, and a powerful social media following of over 39,000 loyal fans, along with the closely guarded recipes behind its famous burgers and fries."

But former staff who spoke to the Herald painted a very different picture, saying the business had been failing to pay its bills for some time.

Two former staff members, who wished to remain anonymous due to ongoing proceedings to claim back superannuation payments, said the owners began cost-cutting as soon as they took over Newy Burger Co.

The staff said original recipes were tweaked, maintenance schedules at the site were reduced or ditched completely and suppliers were swapped out for lower cost options, including bulk sauce from Costco.

One employee said staff would be sent on Costco supermarket runs when ingredients would run out, rather than sticking with suppliers who had been in business with the burger shop since it opened under the original owner.

Both staff members provided documentation showing unpaid superannuation claims of more than $7000 combined. In both cases the ATO ruled in favour of the employees and requested the business pay the outstanding amounts.

"I know it might not sound like much now," one of the former employees said.

"But $5000 now might be $20,000 when I retire. It has now been more than one year trying to collect the money."

The second former employee said it was a shock to discover so much superannuation missing, especially after working diligently for the Newy Burger Co for the period they were employed.

"It is just horrible," the person said.

"What right do they have to take away the funds for my retirement. It is just rude and selfish. I put a lot of effort into that place."

An ATO spokesperson said they were "unable to comment due to our obligations under taxpayer confidentiality laws".

"The ATO takes non-compliance with super guarantee obligations seriously. Our action against employers who aren't complying with super guarantee obligations helps to protect employee's superannuation and ensure a level playing field for all businesses."

The Herald reached out to Shantanu and Anu Karn via email, social media and through a business connection for comment, but had not received a reply at the time this story was published.

Do you know more? Email business@newcastleherald.com.au