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A celebrity chef has revealed he is shutting down his restaurant after 25 years of operation, admitting Melbourne was a “tough city” in which to do business.

TV chef Adrian Richardson announced his restaurant La Luna would serve its last meals on August 3.

He said increasing costs had been part of the reason he decided to pull the plug as a lease renewal loomed for his restaurant site.

“Prices have gone up considerably,” he told the Herald Sun.

“My insurance two years ago was $8000, now it’s $15,000. My gas was $6000 – now it’s $12,000. All of these things add up. Staff wages have gone up. I’d happily work 60 hours a week back in the day, no nobody wants to do it. I have to pay top dollar for a good chef … I think it’s fantastic we are doing that.”