A war of attrition is escalating between Hemmes’ hospitality juggernaut Merivale and media empire Nine Entertainment, as editorialising and accusations evolve into actions with potential.
For years the Sydney Morning Herald has enjoyed the click-generating dichotomy of championing Hemmes as the “bar tzar” creating some of Sydney’s most celebrated venues, only to follow with scandalous scuttlebutt of the “millionaire playboy” based in a rumour of the day.
Both the SMH and Good Food Guide are owned by Nine Entertainment.
This week the flagship Sydney tabloid surrendered any previous pretence of impartiality as it published the story that the GFG had unceremoniously excluded all Merivale venues from this year’s list, stripping hard-earned accreditation from four restaurants that had two hats and a further six with one hat.
The article said the company had built a “multibillion-dollar empire” amid allegations of exploited workers, drug use and dubious business involving VIPs.
It cited an investigation by the Fair Work Ombudsman, confirmed by a spokesperson, currently looking into allegations of underpaying and mismanaging workers, including migrant chefs.
It referenced a payment last year of $19.25 million to more than 2,800 former – and current – staff that were part of a suit alleging underpayment between 2013 and 2019 under an invalid employment agreement.
This “No-Admission Payment” ended a class action lawsuit launched in 2019 by Adero Law that previously involved what were said to be as many as 14,000 staff, claiming in the region of $129 million. Bizarrely, Adero Law’s published account begins with a reference to a report by News.com.au.
But the SMH article attributes the escalation by the Guide to its own claims that Merivale exploited women and encouraged them to have sex with customers, endangering workers and failing to act on allegations of sexual harassment.
The Guide echoed its concerns over issues including not protecting the wellbeing of staff “and abuse of power” raised by the SMH and Nine’s 60 Minutes.
Head of the GFG, Sarah Norris, explained it was not their goal to tell readers whether or not they should eat at a specific restaurant, but in fact to “provide them with more information” on which to make their own decision.
In this instance providing more information has instead amounted to complete omission from the Guide.
By way of precedent, the article also mentioned that the venerable guide on what is considered good food had similarly shunned the now defunct Swillhouse group in 2024’s edition due to comparable unproven claims, notably sexual harassment, widespread drug use and compromised employees.
But the decision to oust Merivale in the pursuit of sensationalising warranted a dedicated changing of the rules, with Norris stipulating that the Guide’s “discretion has broadened to exclude” businesses and their owners facing “serious and credible allegations” that its creators deem inappropriate.
It was not specified what reparations this self-appointed judgement might have if and when allegations are proven unfounded.
While offering up Merivale as Australia’s “largest hospitality company” the publication needed to virtue signal its reasoning for lighting the fire, and graciously acknowledged that its actions “may impact” some of the 5,000 staff employed at the company.
Hemmes’ outfit has fought back in response, issuing a statement citing exoneration.
“Nine’s SMH and Good Food made vexatious assertions to Merivale in 2024 that have been investigated by an independent expert Senior Counsel, Kate Eastman SC, and were found to be unsubstantiated, and there have been no other adverse findings regarding those allegations.”
The statement went further, referencing an independent report that found Nine Entertainment has a “systemic issue with abuse of power and authority; bullying, discrimination and harassment; and sexual harassment”.
Not possessing an equivalent platform on which to return fire, the highly awarded pub group is consigned to doing what it does, despite the poppy-cutters.
“Merivale has, for decades, consistently delivered impressive venues for the enjoyment of locals and visitors and we are proud of the many thousands of staff who strive to offer the best to our customers.
“We do not require the validation of the Good Food Guide, to continue to do so and thrive.”
