Perry - who has gained an international reputation with cookbooks, a television series and his association with Qantas Airways - 'downsized' the award-winning restaurant because of spiralling costs and faltering returns.

But from the ashes of his three-hatted, fine dining establishment rose Rockpool (fish), a pared-back, more casual restaurant where you can eat in style without taking out a bank loan to cover the bill. Perry estimated that the new set-up (which dispenses with linen tablecloths and other frippery) will save him A$500,000 (HK$3.61 million) in the first six months alone.

According to Perry, running a high-end diner in Sydney is becoming too expensive and too risky a business proposition. 'We needed to take A$17,000 a night just to break even at Rockpool. If we took A$20,000 to A$22,000 we made some money. That's just how crazy it is. The margins are very small.'

After 25 years in the restaurant game, Perry, 50, said he wanted to concentrate on simpler dishes and the finest ingredients. 'I'm retiring from fine dining. I just don't want to do it anymore.'

But those who watch Sydney's highly competitive restaurant industry believe that his decision to close Rockpool is emblematic of a shift in the city's eating habits - and one that will reshape the dining landscape for the next decade.

Food critic Scott Bolles, who writes the influential Short Black column for The Sydney Morning Herald, says that Perry had cleverly anticipated Sydney's growing hunger for smart, affordable 'neighbourhood-style' restaurants.

'Everywhere you look there are tapas bars and places serving what I call Italian comfort food. The latest craze is for steak houses - they're opening all across town,' he says. 'But four years ago, Sydney was all about fine dining.'

Bolles says other big-name chefs such as Christine Mansfield (Universal), Peter Conistis (Civic Dining) and British-born chef Matthew Kemp (The Burlington Bar and Dining) are also trying their hands at smaller, more intimate venues. Kemp's new venture features no-nonsense bistro fare such as rib-eye, fish and chips, and even pizza - sold at modest prices.

According to Bolles, this new trend means diners can sample high-end cooking skills and superb produce at affordable prices. 'Sydney has been very good at the upper-level restaurant experience, but not so good at the mid-range neighbourhood eatery. All that is now changing, and it's a welcome development.'

Fuelled by a booming commodities market and property sector, Sydney has been awash with money for several years, but are the days of the A$1,000 degustation and the A$180 wagyu steak finally over?

Not everyone believes that Sydney's long lunch is grinding to its much-anticipated finale. Corporate lawyer and food critic Guy Griffin believes that whatever happens, 'the ruling class' will continue to flash their gold credit cards around in expensive eateries such as Guillaume, Tetsuya's, Quay and Aria. 'What you're seeing is a certain hesitation in the marketplace, but not full-blown pessimism,' he says. 'Great food served in an elegant dining room is a great way to take your mind off things, isn't it?'