‘As bad as it gets’: What’s going on with Wellington’s hospo scene?

Wednesday, 18 December 2024

Jamie Williams warns that Wellington's status as the 'Culture Capital' is at risk. He highlights a lack of entrepreneurial talent, struggling hospitality, and a need for a long-term vision to improve the city.

Wellington has seen a number of popular bars and restaurants close this year.

One bar owner said it last week had been one of the worst weeks for the industry.

Hospitality businesses owners haven’t given up, though, and are hoping for a good Christmas season.

The owner of a popular craft beer pub in the capital doesn’t think he’s seen a week as bad as last week was.

Sean Murrie, owner of The Malthouse pub, said this has been one of the worst weeks for Wellington’s hospitality scene.

In the space of just three days, four Wellington hospitality venues announced they were either closing or had been sold.

Olive has been a popular cafe on Cuba St for many years.

“It’s as bad as it gets. For people to be announcing they’re closing just prior to Christmas is probably completely unheard of,” Sean Murrie, founder of The Malthouse, told Stuff.

Award winning bakery Myrtle is closing its doors on December 21 after three years in business due to the building it operates out of no longer being available - the announcement made just days after winning outstanding bakery at the Welly Hospo Awards.

Well-known Cuba Street cafe Olive, that once turned away former prime minister Jacinda Ardern because there were no tables free, revealed this week that while it had been sold to the team behind the Thistle Inn in Thorndon, and it would no longer operate as Olive once reopened.

The owner of Burmese restaurant, Mabel’s, took to Instragram to say she will be shutting its doors on Christmas Eve, and her and her husband are ready for the next chapter in their lives.

Apache, acclaimed for its Vietnamese food and award-winning burgers, will also be closing its doors from January after 10 years of business - it’s located opposite Wellington’s Town Hall on Wakefield Street which has become a hub of constant construction, and owner Le Minh told Stuff business has been “a little harder in the last few years” but didn’t want to point the blame at any one thing.

The capital’s also seen several other high-profile closures throughout the year, including Nikau Cafe, Bordeaux Bakery, Egmont Street Eatery, CGR Merchant & CO, and Pandoro.

“Anyone who says that they’re not down on where they were, pre Covid times, isn’t telling the truth.. [the industry is experiencing] quite a downturn, for sure,” Murrie said.

Jeremy Smith hopes a New Years Eve event on Courtenay Place will get locals out and supporting hospitality venues

Jeremy Smith, director of hospitality organisation Trinity Group and also Treasurer for Hospitality New Zealand, said it’s been a tough 18 months for the sector.

“We have to claw our way out of the hole as failure is not an option,” he told Stuff.

Smith said that last weekend’s test match between the Black Caps and England provided a well-needed boost, with supporters filling the city’s bars and pubs, and hoped New Years Eve event, the Carnival of Courtenay Place, would be another reason for people to get out and about and support local hospitality.

“Have a meal, enjoy the entertainment, drink some cocktails!” he encouraged.

Despite the gloom, there have been some other positive Wellington hospitality moves including Shelly Bay Baker recently opening its third cafe in the capital and French bakery La Cloche opening its fifth.

Murrie’s wife, Lydia Suggate, also opened her sixth venue in June this year - Otto Champagneria & Beer Hall.

She told Stuff once the government job cuts started to sink in things were tough.

“September was the worst month, with a flat October and November, but things have finally started to to amp up for Christmas.. we’re hopeful but a little apprehensive for 2025, but we’ll throw a lot of every at it ,” she said.

Suggate is the brains behind other popular Wellington spots such as Beach Babylon, The Botanist, and Little Beer Quarter.

“People are loving deals at the moment, so understanding that things are tight and trying to offer a range of pricing options has been appreciated [by customers]. Location is a big factor at the moment.. so places that either have a lot of offices nearby, are suburban, or have good parking seem to be doing better than others.”

Some more new bars and restaurants opening around the city could give the industry the shot of adrenaline that it needs, she said.

“I think if some people are prepared to be bold, with a good concept, the people are there - they just need a bit of encouragement, and something new and interesting to get excited about.”

Murrie wants to see a targeted hospitality campaign run by Wellington City Council, so that 2025 doesn’t see a continuation of the closures.

“There needs to be some help.. [we] might lose the people coming to Wellington for a good experience.. they’re going to have to put some hard yards in.”

Smith is also calling for more council action.

“WCC & WellingtonNZ need to invest more in events, and we need to invest in tourism infrastructure and marketing. Wellington has so much to offer.”