New Wellington eateries opening amid industry struggles

Monday, 23 September 2024

The capital is in economic dire straits, which businesses attribute to many public servants working from home.

New hospitality venues continue to open in central Wellington, bringing hope to the beleaguered area.

Le Bouillon Bel Air, Salut Pies, Fishcube Gallery and Café, Supra and Alswaida by Damascus are among the new eateries that have opened over the past several weeks, alongside three new bars opening on Courtenay Place.

This comes as recent figures released from the Restaurant Association show that, despite the hospitality industry’s ongoing difficulties, there has been a 5.8% increase in annual revenue for restaurants that took part in the survey between April and June this year.

Restaurant Association chief executive Marisa Bidois said extraordinary determination continued to be seen from its members.

Five new eateries have opened in the Wellington CBD, despite the industry’s recent struggles.

“We’ve weathered tough times before, and while the trading environment remains difficult, we are prepared to face these challenges head-on and are focused on surviving until 2025 and beyond.”

Long-time Wellington bakery chain Pandoro fell victim to these changes, with manager of the Willis St store Sarantos Economo saying its closure was “heart breaking”.

Concord bistro also closed its doors this year, alongside Egmont St Deli and Diner, and two Courtenay Place bars, Sugarwoods and Rubix, also closed.

The Restaurant Association’s figures show the difficulties the industry is going through. Average revenue in Auckland dropped by 0.7% and 76% of the surveyed restaurants reported worse to significantly worse profits compared to last year.

The downturn in customers was the biggest challenge, the report said, with more half the surveyed restaurants saying this was its primary concern.

Salut Pies on Victoria St is a bakery that recently opened its doors in the capital.

Adding to inflation and rising operational costs, businesses had been forced to raise prices by an additional 6.4% on average, the report said.

Remote and hybrid working models that allow employees to work from home was called a contributing factor to hospitality’s lack of foot traffic by Fidel’s owner Fred Young, who said it had destroyed his lunch crowd.

“Too many places, too many government [departments] and banks right across the board are working from home. And I think that's the number one crisis we've got at the moment.”

The Restaurant Association said staffing remained a concern. While most businesses said they were fully staffed, it continued to be difficult to recruit for senior roles.

Mental health for people working in the industry continued to be poor, with just over half of business owners saying there had been a negative impact on their wellbeing.

However, the takeaway sector appeared to be “defying the odds”, the report said, experiencing a 4.2% growth between April and June.

This highlighted a shift in customer behaviour, with people looking for convenience and affordability of takeaways, Bidois said.

“This sector’s resilience offers a glimmer of hope for the broader industry, providing a much-needed revenue stream for businesses that are otherwise struggling with declining foot traffic in dine-in operations.”