A critically acclaimed Japanese restaurant has withdrawn from the newly opened Sydney Fish Market, citing operational issues and saying it had insufficient legal protections under the proposed lease arrangement.
Restaurant 16, an eight-seat omakase venue that operated in Cammeray, in the Lower North Shore, for over 14 years, had planned to open at the $836-million Glebe facility in February alongside Get Sashimi. The restaurant closed its Lower North Shore location in December and began fit-out work at the new markets before concluding that the arrangement was not viable for its specific operations.
Lease and Operational Concerns Behind Withdrawal
Managing director Hiroko Ryu says the decision to withdraw was difficult but unavoidable due to serious circumstances that emerged during the preparation phase. The restaurant had operated under a sublease structure with Get Sashimi but was unable to execute what Ryu describes as a standard, formal sublease agreement.
According to Ryu, operational issues became apparent as the opening approached, particularly around consistent and reliable access to necessary facilities. While the restaurant made efforts to resolve matters cooperatively and understood the challenges of an initial opening phase, Ryu says the operational necessity of reliable access was not sufficiently recognised.
Ryu alleged that the legal protections offered to them did not meet their internal requirements. More significantly, he says it became clear the environment would make it nearly impossible to maintain the standards Restaurant 16 has upheld for over 15 years, built on customer trust and a commitment to what the restaurant calls honest cuisine and sincere hospitality.
Conflicting Accounts Over Lease Arrangements
Get Sashimi director Antonio Muollo disputes aspects of Restaurant 16’s account, stating the lease arrangement was never with Get Sashimi but rather with Wellstoneme, the entity controlling three omakase rooms at the Fish Market.
According to Muollo, two other restaurants are leasing the remaining omakase rooms and report satisfaction with the arrangements. The dispute allegedly appears to centre on the structure and terms of the sublease rather than the physical space itself.
The differing accounts reflect contrasting views on the intended business structure. Restaurant 16 maintains that its negotiations were with Get Sashimi, while Get Sashimi has distanced itself from the lease, identifying Wellstoneme as the relevant entity. The specific terms of the proposed agreements remain confidential, and it is unclear whether either party will pursue further legal mediation over fit-out costs already incurred.
About Restaurant 16
Chef and owner Toru Ryu originally named the restaurant after Unit 16, the Sydney apartment where he lived during his training days. The Japanese-born chef built a cult-like following over his 16 years operating the intimate venue, which seated just eight diners.
As he approached his 16th year in business, Ryu had expressed readiness to move into a new chapter at the Sydney Fish Market. The closure of the Lower North Shore venue in December was intended to facilitate the transition to Glebe rather than mark the end of operations.
Ryu has indicated plans to eventually find another space for Restaurant 16, though no timeline or location has been announced. The withdrawal leaves the restaurant without a operating venue while it searches for suitable premises.
Sydney Fish Market Context
The new Sydney Fish Market opened on January 19, 2026, marking the completion of a $836 million redevelopment project. The facility replaced the decades-old Pyrmont markets, providing upgraded auction facilities, retail fish markets, restaurants and public spaces on a waterfront site.
The markets are located at 1 Bridge Road, Glebe, approximately three to four kilometres from Surry Hills in Sydney’s inner west. The location is accessible within 10 to 15 minutes by car from Surry Hills or via public transport connections through the light rail network.
The development includes multiple hospitality operators in addition to the core fish market operations, creating a dining and tourism destination intended to complement the working market facilities. The omakase rooms where Restaurant 16 had planned to operate represent part of the premium dining offering within the broader complex.
Opening phase challenges are not uncommon for large-scale mixed-use developments, particularly those involving multiple independent operators sharing infrastructure and facilities. These concerns echo broader industry discussions during the market’s handover phase about whether the infrastructure was adequate for premium hospitality operators.
The Fish Market development brings together retail, wholesale, hospitality and public realm functions in an integrated precinct.
Lease arrangements in such developments typically involve head leases from the property owner to anchor tenants, with potential sublease structures for smaller operators. The specific arrangements at the Fish Market involve various entities with different operational responsibilities, as indicated by the distinction between Get Sashimi and Wellstoneme in this case.
Implications for Diners and the Precinct
The withdrawal removes one anticipated option from the Fish Market’s dining lineup. Customers awaiting the new opening now have no announced reopening date or location.
The cult following built over many years represents a dedicated clientele. Restaurant 16 had announced plans to relocate, and now says it plans to find another space.
Published 06-February-2026.
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