ARCA Raises Alarm Over All-Electric Building Mandate – Calls for Statewide Hospitality Solidarity

The Australian Restaurant & Cafe Association (ARCA) today expressed deep concern over the Victorian Government’s announcement that from 1 January 2027, all new commercial buildings—excluding industrial, manufacturing and agricultural facilities—will be mandated to be all-electric.

While ARCA supports a transition to cleaner energy, the sweeping scope and speed of this policy raise serious red flags for hospitality businesses, many of whom rely on gas for commercial kitchens, water heating, and service delivery in high-demand environments and many who fear it will apply to renovations also.

“This is not just a planning regulation—it’s a bombshell for Victoria’s cafes and restaurants,” said ARCA CEO Wes Lambert. “Without a comprehensive infrastructure plan, this policy risks crippling new hospitality ventures, stalling development, and pushing up build and fit-out costs for an already stretched industry.”

The Government’s announcement lacks detail on:

• The readiness of Victoria’s electric grid to support commercial kitchen conversion at scale
• The cost implications for restaurateurs building or relocating after 2027
• The availability of high-performance electric alternatives to current gas-powered appliances essential in commercial food production

ARCA is urging the Victorian Government to:

1. Immediately consult with the hospitality sector on exemptions, transitional provisions and incentives for electric upgrades.
2. Delay implementation of the all-electric requirement for restaurants, cafés, and licensed venues until adequate infrastructure and financial support are in place.
3. Deliver a transparent roadmap for grid readiness, appliance supply chains and retrofit feasibility.

“This is a blunt-force policy that assumes all commercial tenants operate in the same way. But hospitality isn’t an office tower—it’s energy-intensive, high-risk, and customer-facing,” Mr Lambert said.

ARCA also warns that smaller operators—particularly family-owned cafés and multicultural food businesses—will be disproportionately affected by forced transitions, especially in regional and suburban growth corridors where power networks are already constrained.

In response, ARCA is calling for a State Day of Hospitality Solidarity, where venues across Victoria are encouraged to:

• Share their concerns on social media using #PowerOurKitchens
• Display posters or messaging on-site to educate customers
• Call or write your local state MP with your concerns
• Close if you able

“Hospitality venues are not anti-renewables. We simply need the government to balance ambition with practical reality,” Mr Lambert said. “We invite every Victorian venue to join us in solidarity—to protect your kitchens, your teams, and your future.”

For more information or to join the campaign, visit: www.arca.org.au/powerourkitchens

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