Top end restaurant closure a sign of the times

Tuesday, 31 October 2023

An award winning Wellington restaurant once described as being at the epicentre of hip is closing, a victim of the rising cost of living and changing dining habits.

Hannah’s Laneway restaurant Shepherd will close its doors on November 26, seven years after it opened amid rave reviews.

Co-owned by Wellington hospitality stalwarts Shepherd Elliott and Sean Golding, of Goldings Free Dive, the restaurant is renowned for its cutting edge cuisine and its use of seasonal, unusual and local ingredients.

It received two hats, in 2019 and 2022, and was named Best Casual Dining at the Cuisine Good Food Awards (2019). It is ranked alongside the likes of Logan Brown and Hippopotamus as one of the city’s top eateries.

Elliott said shutting up shop was extremely sad, but an essential end to the Shepherd story.

“There’s been all the emotions that you can imagine. I love that restaurant. It was very much me. And I put everything into it.”

The decision had not been made lightly, or quickly.

There were “many, any reasons” for it, but the changing culinary mood and the ongoing cost of living challenges facing the wider hospitality sector were the main ones.

Diners were opting for “safe”, simple food over high-end dining.

“That is different to what we do at Shepherd, which was always about pushing the boundaries. It was either we change our direction and try something new, or we just look at what we're doing and go OK, maybe it's not right for this moment.”

Rising costs were another big factor, for both the restaurant and its customers, Elliott said. Diners wanted value for money, but were also wanting more bang for their buck.

“It really is a sign of the time. People don’t have the money to spend and what we did wasn’t cheap. It took a lot of time and effort.”

He said the restaurant was down 40% this winter compared to last. “But I’ve been talking to people in hospitality all around New Zealand and that’s not unusual. They’re all finding it tough.”

Restaurant Association CEO Marisa Bidois echoed those sentiments, saying reports from members suggested conditions were definitely challenging, with a notable impact on fine dining establishments.

“The feeling is that with the current cost of living, people are not dining out as frequently, and when they do are reducing their spend.”

She said the closure of high-profile, high-end dining establishments in any city had wide-reaching effects, from economic impacts and a loss of prestige to reduced culinary diversity, affecting both locals and tourists alike, and were a reflection of broader economic challenges.

“These closures can create a ripple effect, affecting suppliers, vendors, and employees who rely on the business generated by these high profile establishments.”

While the second quarter of 2023 saw an overall growth rate of 9.8% within the sector, notably, menu pricing had also risen by a comparable 9.2%.

“Rising labour and food costs is affecting profitability, with only 20% of business owners expecting improvement due to economic uncertainties. Staff shortages also continue to be an issue,” Bidois said.

Despite having been involved with food for almost 30 years — working his way across Europe and North America, including with famed Japanese-Aussie chef Tetsuya Wakuda — Elliott said Shepherd, which he and Golding built from scratch, had been a wonderful learning experience,.

“We've done awesome stuff, things we wouldn't have imagined we could have done before doing them.”

Highlights had included the Visa Wellington on A plate events in 2019, where legendary LA chef Nancy Silverton took over the kitchen for three nights and six settings, and 2020’s Breakneck 2.0, which saw staff serve 20 diners, 20 courses, over 220 minutes.

Then, of course, there was the more prosaic, yet just as meaningful - the first dates, the birthdays, the anniversaries.

“And working with an amazing group of talented hospitality people that have come through, and all the co-labs we've done. I think that's that's the thing that I’ve really enjoyed - working with others that are passionate about what they're doing,” he said.

Notable customers had included film maker and husband of Rita Ora, Taika Waititi, and his Flight of the Conchords pal Bret McKenzie.

In a 2017 Stuff review, food writer and critic David Burton wrote that Shepherd “lies at Welly's epicentre of hip. So please do not expect crème brulee, steak bearnaise and frites. Rather, please do be prepared for creamed nettle and kawakawa jelly. Sustainably harvested beech forest wasp pupae may eventually follow.”

At one stage Elliott and Golding owned six hospitality venues in the capital between them, including Ti Kouka cafe and Leeds St Bakery (Elliott) along with Goldings, the Intrepid Hotel, Puffin and Humdinger (Golding). They still own Concord, which opened in the old Lido cafe building in Victoria St in April last year.

Elliott will continue his work there, and at his new venture The Development Kitchen, a custom-built test kitchen on The Terrace where he and business partner Dale Bowie aim to research the untapped potential of locally produced ingredients, including the use of seaweed as a sustainable local ingredient.

“It will be a big change in direction for me, in lots of ways, which is exciting. I still want to give back to hospitality in Wellington, I still want to be able to help as much as I can. It's not going to change any of that. It’s just about being involved in slightly different ways.”

Shepherd will close on November 26. Elliott and Golding are working with the 14 staff to try and help with ongoing employment.