Publican Julian Field said the closure was forced by a 50%-60% decline in sales since Covid-19 emerged last year and backpackers stopped coming to Wanaka.
The bar and live music venue on the corner of Helwick and Brownston Sts was popular with guests staying in the neighbouring backpackers Base and the Matterhorn.
Both those Brownston St establishments are no longer operating and the properties are for sale.
Fitzpatricks bar was also popular with musicians, performers and late shift workers.
The closure was with "an extremely heavy heart", a post on social media said this week.
"This decision has not come lightly but the last 18 months have been more than a little challenging for obvious reasons and an opportunity to close the bar gracefully and on our own terms has presented itself."
Mr Field confirmed the lease has been sold to another business.
He could not say what would reopen in Fitzpatricks’ place, but he could say it was not going to be a hospitality business.
"The last 10 years of Fitzpatricks have been a blast all the way and we’d like to thank every single patron that passed through our doors," he said.
Mr Field also operates Rove and Woodies bars in Post Office Lane, in Ardmore St.
These were still going well after a few tweaks to cope with the pandemic challenges and despite a very tough year, he said.
"But Fitzpatricks, ever since Covid, has struggled. It was a model that relied on tourism more than the others. Part of the market was the surrounding backpackers ... We did have locals but travellers were a big part of our market."
Mr Field also owns Subway takeaway stores in Dunedin and Gore.
He said those businesses were recovering well now the South Island had returned to Alert Level 2.
While takeaway business models had bounced back well, hospitality was still struggling under Level 2 restrictions, such as table service only and limits on numbers, he said.
"[The restrictions] kind of go against the reason why people want to go out. They can’t play pool, can’t play music, can’t dance," he said.
Ignite Wanaka Chamber of Commerce general manager Naomi Lindsay said yesterday while there had been several changes in the hospitality industry recently, her message was that it was not all doom and gloom and everyone’s circumstances were different.
"I don’t want to downplay anything though. It is tough, not just for hospitality, but for tourism and retail. However, there are businesses who are doing OK," she said.
