Madam Woo is blaming "ongoing skilled labour shortages" for a decision to close its Dunedin restaurant.

A notice posted in the window of the lower Stuart St restaurant announced the "incredibly hard decision" to close the Dunedin establishment for good on Thursday.

Staff inside declined to comment when approached by the Otago Daily Times this afternoon.

The decision to close would allow the owners to focus their efforts on the nationwide restaurant brand's other establishments, including in Queenstown, the note said.

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"We remain committed to our vision to successfully grow Madam Woo and our new brand Hawker & Roll so more customers can experience the hospitality we have to offer."

Loyalty members in Dunedin had until tomorrow to redeem their points - at double value - in the Dunedin restaurant, after which they would be accepted at other Madam Woo sites nationwide, the note said.

Madam Woo's decision to launch a Dunedin restaurant was announced to much fanfare in 2015.

At the time, Mayfare Group Ltd co-owner Fleur Caulton, of Queenstown, said she and Michelin star chef Josh Emett, of Auckland, saw it as "an opportunity for the style of business we have".

"We love Dunedin as a city and have spent a lot of time there and think it's a great place to have a business."

Caulton said at the time she was "very happy" with the Dunedin site.

"It's close to the Octagon . . . but yet it's far enough away that it's not in amongst it," she said.

Madam Woo has restaurants in Auckland, Hamilton, Christchurch and Queenstown.

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