Clouds are beginning to hover over food and beverage outlets at the $73 million Yagan Square precinct after the recent closure of businesses, while more face declining revenue and an uncertain future barely 12 months after a much-heralded opening.

The one-hectare public space between the arms of the Horseshoe Bridge is a jewel of the state government's Perth City Link project, but many of the 17 retail dining outlets – some encouraged to move to the precinct by the Metropolitan Redevelopment Authority – are struggling for relevance.

Yagan Square connects the CBD with Northbridge but 14 food outlets inside its 'Market Hall' are struggling to be seen.

The retail dining problems echo the financial states of several other food and beverage-focused precincts near the city like On The Point, which lost rock star tenant Ku De Ta to poor revenue despite a prime fit-out and location on the Swan River, the Leederville cafe strip and Mount Lawley's once-eclectic Beaufort Street, the latest casualty food and wine focused venue Five Bar.

Tenants at Yagan Square were expecting to leverage the precinct's thousands of daily pedestrians from twin transport hubs, the CBD and Northbridge but WAtoday understands foot traffic from the CBD, Northbridge, Perth Busport and Perth Underground is about half what the MRA predicted.