Lockdown lashes eateries
After record takings of $12.1 billion in the year to March 2020, hospitality in New Zealand plunged a whopping 40 per cent after the Covid-19 pandemic struck.
Before the virus outbreak, things were looking extremely bright for the industry which had posted significant annual growths year on year since 2016.
Sales for the sector grew 4 per cent in the financial year, which in dollar terms translates to an increase of the previous year of $236 million.
After March, with many businesses unable to operate under level 4 lockdown, sales revenue plunged, posting just $1.7b for April to June, down more than 40 per cent from $2.9b in the same period last year.
The figures were released in the latest Restaurant Association Hospitality Report released yesterday.
Association CEO Marisa Bidois said the road ahead for industry was a “bumpy one” but there would also be new opportunities.
“With careful planning, operators can make it through while building a strong and sustainable business,” Bidois said.
“Operators identify New Zealanders supporting local businesses and building deeper relationships with customers and communities as two of the most significant opportunities for their businesses over the next 12 months.”
Despite the industry overall declining 3.1 per cent after March, some regions had posted positive sales growth including Tasman, up 29.3 per cent, Kaikoura, up 19.4 per cent, Marlborough, up 18.2 per cent and Northland, up 17.8 per cent.
Chris Martin, co-owner of Ahi — a restaurant that opened on August 31 just after Auckland’s second lockdown — said it had been challenging, but he was optimistic.
Ahi, which means fire in te reo Ma¯ori, is described as a fine dining meets laidback sophistication eatery offering modern takes on Kiwi classics.
“To be honest that were times early on when I’ve wondered how we were even going to open, but now that we have, I am feeling so positive about it. We have been busy every day since opening,” Martin said.
Bidois said the shape of hospitality could change forever as a result of 2020, and the pandemic has dealt the industry huge challenges.
Association members indicated in a recent survey that their top three concerns were the further increases to the minimum wage, another Covid19 outbreak and maintaining profitability.