Coronavirus: How bad has lockdown 3 really been for business?

Monday, 24 August 2020

Too Good Espresso cafe owner Varna Bennett says she was better prepared to operate her business under level 3 than the first time the city went into level 3 lockdown in April.

Auckland businesses say they were better prepared to operate under level 3 than the first time.

Varna Bennett did not operate her Ponsonby cafe Too Good Espresso when the country moved into level 3 in April.

“It was just too hard the first time. Everything was new and we were all pretty nervous. It wasn’t worth the physical effort because we didn’t know if we could operate or would have to shut down a week later,” Bennett said.

But when Auckland went into alert level 3 earlier this month, Bennett had a plan and said customers too were better prepared.

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Bennett, the sole owner and operator of her business, said while the financial impact of going back into lockdown had been significant, the local community had supported her through.

Foot traffic was weather-dependent under level 3, Bennett said

“I’ve been doing coffee bean deliveries over text message for my regulars. On sunny days, when people are out and about, I’ll serve coffee through the window, but on rainy days I close the shop,” she said.

Bennett was hoping the Prime Minister would announce alert levels would drop again, for the sake of small businesses in her community.

“If you walk along Ponsonby Rd, so many shops are closed, it’s so sad to see. The health of the nation is important, but businesses still need to operate.”

Takapuna Beach Business Association chief executive Terence Harpur says the country’s overall ability to contact trace has vastly improved since April.

She said rent relief from her landlord had made operating under level 3 easier.

Another small business owner in Auckland’s Takapuna, Joe Geo, who owns Joe’s Eatery, said although he was “tempted to pull the plug” on his business, he decided to operate under level 3.

The Takapuna Beach Business Association says hospitality businesses are “suffering” while liquor stores, dairies and supermarkets are doing better than before in some cases.

“I remember last time as levels decreased most people said they were looking forward to enjoying a good coffee when lockdown ended. I wanted to stay open to offer that to people,” Geo said.

He said under level 3, 80 per cent of his sales had been from his regulars.

“Takapuna is a destination for Aucklanders, but we’ve lost that and we’ve also lost our corporate customers because they’re working from home. It’s been our local community that have supported us.”

Geo said, with the lockdown coupled with roadworks outside his shop, his cafe’s revenue had dropped 30 per cent.

But he was able to operate the cafe through takeaway services and the SOS voucher scheme, with his four staff.

“Going back to operation under level 3 was a lot easier this time. First time round there was greater fear. This time more people have been stepping out,” Geo said.

Takapuna Beach Business Association chief executive Terence Harpur said even before the level 3 lockdown, retail spend had fallen by nearly two-thirds in a seven-day period, with just four and a half of those days during the lockdown.

Harpur expected Paymark’s results from the seven-day period during level 3 would show a much worse situation for the businesses.

The Paymark data showed the spending in the week ending August 16 was down a total of 64.4 per cent compared to the same week last year.

Harpur said hospitality and clothing businesses were “suffering enormously” while the likes of liquor stores, dairies and supermarkets were trading in a normal way, if not better in some cases.

He said the country’s overall ability to contact trace had vastly improved since April.

“Record-keeping by businesses is no problem. It’s more that if Auckland moved down to level 2, restaurants, cafes, bars and retailers would reopen but the physical distancing requirements would force many to operate at a fraction of their usual capacity.”

“Level 2 also encourages people to work from home, which again doesn’t support town centres like ours.”

He urged the Government to move Auckland into level 1.5 if Covid-19 was “positively contained”.

Geo said he was prepared for the level 3 lockdown to be extended.

“For business, it’s obviously great if the lockdown was lifted. But you can’t be selfish. We’ve seen what has happened in Victoria when restrictions were lifted.

“We’re all in this together, so you have to be prepared to stay longer if the country needs that.”