A popular and award-winning Auckland restaurant has stopped its operations after failing to meet rent payments of over $60,000, New Zealand Herald reports.

Iguacu Restaurant and Bar has shut down this month after staying in the business for over a decade, saying the landlord had unrealistic demands. It is the second iconic restaurant to close down in a much challenging business climate, following the shutting down of Cin Cin on Quay only two months ago.

The restaurant was named after Iguacu Falls on the Argentina/Brazil border. Its specialties included European cuisine. It won awards for the quality of food it served.

However, Iguacu defaulted on rent payments for two months.

Phil Houston, Iguacu restaurant operations manager, told the Herald their business suffered from crippling rent costs amid the economic downturn.

"The rent is not sustainable in this environment and as a result the lease has been cancelled. It's $450,000 per year including GST and outgoings,'' he said.

Mr Houston said the restaurant owners had been unable to reach an agreement with the landlord despite negotiations.

"We tabled an offer and that offer was not acceptable to him,'' he said, adding, "His expectations of rental levels are different to what the company directors' (can afford).''

Building owner City Construction Ltd told the Herald it was already considering redeveloping the site, even as the Iguacu website says the restaurant has stopped servicing temporarily but the owners "have all faith that there will be a positive outcome shortly.''

In 2010, 38 hospitality businesses closed. In 2011, 60 businesses shut down. This year, the number has already reached 64 when the second quarter has just begun, the Herald reported.

"That's a reflection of a reasonably tight time,'' said Hospitality Association president Adam Cunningham.