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A 37-year-old Dee Why restaurant faces demolition if plans for a new five-storey shop-top housing development are approved, leaving the future of The Thai and I uncertain.

Read: Dee Why RSL Lodges $120 Million Seniors’ Living Expansion Plans

The family-run Thai restaurant, which opened in 1989, operates from the ground floor of a two-storey building on The Strand, about 25 metres from the beach.

The site is now the subject of a development application proposing demolition of the existing building and construction of a new shop-top housing complex. The restaurant has operated in Dee Why since 1989 and has developed a long-standing presence in the suburb.

The Thai and I — Photo credit: Google Maps/Gayan Pathirana

The restaurant’s operators want to keep the business in Dee Why and have raised the possibility of leasing space in the proposed building. The development proponent, however, said discussions with restaurateurs about the proposed ground-floor tenancy had not yet commenced. The operators have also indicated they would consider another location in the suburb if remaining at The Strand is not possible.

What The Proposal Includes

Render of proposed development (Photo credit: DA2026/0913)

The development application (DA2026/0913) was lodged in July 2026 and is currently on public exhibition from August 5 to September 2.

According to documents lodged with the application, the proposed $13.237 million project would involve demolition of the existing building and construction of shop-top housing, including in-fill affordable housing and strata subdivision.

The plans include two ground-floor retail tenancies and four residential levels containing 12 apartments. Three apartments are proposed to be allocated as affordable housing. The development also includes two basement car parking levels and associated parking for the residential and commercial components.

The existing site contains The Thai and I on the ground floor, with several small apartments on the level above. The application remains under assessment and has not been approved.

Restaurant’s Future Remains Uncertain

Whether The Thai and I could return to the site would depend in part on the size and suitability of any future retail premises. The restaurant’s operators have raised the possibility of leasing space in the proposed building. The development proponent, however, said discussions with restaurateurs about the proposed ground-floor tenancy had not yet commenced.

The development proponent has said it would be open to discussions with the restaurant when the appropriate stage of the project is reached. Nearby Italian restaurant Stella Blu recently closed after 34 years, with the building it occupied also being redeveloped for apartments.

The Thai and I’s operators have said they want to keep the restaurant operating in Dee Why, including at another site if necessary. The development proponent says the project is aimed at providing greater housing choice, particularly for downsizers seeking to remain in the area. The proposal also includes affordable housing intended to be managed by a community housing provider for eligible households.

The restaurant’s future remains unresolved while the development application moves through the assessment process.

Read: Dee Why Restaurant Stella Blu Nears Final Service After 34 Years

The proposal could bring a significant change to the restaurant’s long-standing location on The Strand, but its future in Dee Why remains open as the planning process continues. Public submissions on the proposal can be made during the exhibition period, which closes this September.

Published 15-August-2026

Stella Blu at Dee Why Beach will close after 34 years on The Strand, bringing an end to a beachfront restaurant remembered through decades of meals, milestones and familiar local routines.

For more than three decades, Stella Blu has been part of the rhythm of Dee Why Beach.

The Italian restaurant at 18 The Strand opened in 1992, when the beachfront had only a handful of eateries. It began as a 40-seat cafe serving pizza, focaccia, pasta, coffee and desserts, before growing into a larger restaurant known to generations of diners on the northern beaches.

That long run will end on 28 June, when Stella Blu closes after its final lunch service.

Co-owners Nick Salerno and Pino Salerno announced the closure as impending redevelopment of the site brings the restaurant’s time at The Strand to an end. The business looked at other options, but no alternative was found that felt right for Stella Blu.

Stella Blu restaurant at Dee Why Beach — *Photo Credit: Stella Blu Restaurant & Bar/Facebook*

From Small Cafe to Long-Running Ristorante

Stella Blu’s story at Dee Why Beach began with modest offerings and a small dining room, but the venue quickly became a favourite among locals.

Over time, it expanded into adjoining premises and was renovated as the owners worked to create an Italian ristorante shaped by food, hospitality and its beachside location.

The site also carries an earlier family history. Umberto and Stella Russo, Italian immigrants, built two shops with a flat above after an older shop on the site burnt down in 1977. They operated a cafe on the corner of The Strand and Howard Avenue called Donna Stella.

Their son Victor later took over the restaurant and renamed it Stella Blu in honour of his mother.

When Nick Salerno became part of the business, Stella Blu was still known for simpler cafe-style meals. With Pino Salerno later joining as partner, the restaurant grew into the venue many diners came to know across the following decades.

Outdoor tables at Stella Blu Dee Why — *Photo Credit: Stella Blu Restaurant & Bar/Facebook*

Milestones Around the Table

Stella Blu became more than a place for lunch or dinner for many of its regulars.

Across 34 years, the restaurant became a setting for proposals, birthdays, wedding receptions, anniversaries, Mother’s Day meals, farewell drinks and wakes. Customers have remembered favourite dishes, family lunches, long meals with friends and occasions that became attached to the restaurant’s beachfront tables.

Former staff have also recalled busy services, long shifts and the people they worked with over the years. Others remembered the early days of the restaurant, when it was smaller, simpler and already becoming part of Dee Why Beach life.

Since the closure was announced, customers and former staff have shared memories of the restaurant’s food, service, staff and place on The Strand.

The Strand dining strip in Dee Why — *Photo Credit: Stella Blu Restaurant & Bar/Facebook*

Redevelopment Ends the Restaurant’s Time on The Strand

The decision to close follows plans to redevelop the building into a shop-top apartment complex.

Nick Salerno had initially intended to work with the property owners through the redevelopment, with the possibility of continuing Stella Blu in the renewed premises. However, the process continued for a long period, leaving the business without certainty about whether it would return to the site.

He has said there was no acrimony over the redevelopment decision, but the lack of security around the restaurant’s future made it difficult to keep waiting.

The business also considered another premises on The Strand, but no suitable site was available. Moving Stella Blu away from Dee Why was not considered the right fit for a restaurant so closely associated with the suburb.

Final Meals by the Beach

The restaurant’s final week has been marked as a last chance for diners to return before Stella Blu closes its doors.

For some, that means one more meal at a familiar table. For others, it is a final visit to a place linked with birthdays, family gatherings, old work memories or evenings by the water.

Nick Salerno has said he is closing the restaurant while he still enjoys the work and the interaction with customers. After Stella Blu closes, he has said he will explore other potential interests in hospitality.

Published 24-June-2026

Tag: The Strand

The Thai and I Dee Why Faces Uncertain Future Amid Demolition Proposal