April 13, 2026 • 5 mins
Rising fuel prices are starting to push up costs across the entire economy, not just at the petrol pump.
Businesses are feeling the ripple effect, especially in hospitality, where suppliers are adding surcharges to cover higher transport and production costs.
Popular Wellington café, Smith the Grocer, is now considering introducing its own fuel surcharge as expenses like meat, milk, and deliveries increase.
Nick speaks to co-owner Kirsten Saunders on the subject - where do they draw the line? How are they coping at the moment with high costs?
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Speaker 1 (00:07):
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talk sib.
Speaker 2 (00:12):
Kirsten, I really, I'm really interested in the story because
how close are you to deciding what you're going to do?
Speaker 3 (00:20):
Well? Our suppliers are really only started signaling that they're
going to give us either surchanges or across the board
increases on their prices in the last sort of couple
of weeks. So we've got eight key suppliers and now
four of those or five actually is of today, have
all advised that they're going to do either a surcharge
or increase their prices, So it hasn't flowed through into
(00:43):
our invoices yet, so we're just sort of keeping a
watching brief to see where it goes. To Really, do you.
Speaker 2 (00:50):
Believe that five percent will be enough.
Speaker 3 (00:53):
At this point in time? I just don't know what
that would be because we've got one supply that's increased
prices by four another one that's five, another one's three
percent surcharge. But we wouldn't have to apply that whole
surcharge to our to our things, because you know, the
goods and services that we buy is only one part
of our cost. So our whole cost base is not
(01:14):
going to go up by five percent sore. Therefore we
wouldn't need to increase all our prices by five percent,
so it would be much more modest than that.
Speaker 2 (01:20):
Okay, we've had a couple of people saying, why don't
you or us or anyone else that's involved in US
and you just put their prices up?
Speaker 3 (01:28):
Well, because then my view is that then that becomes
an enduring price rise that doesn't go back down. So
if if our suppliers are just going to hang us
with a tempree search tempre and price increase, and it
seems fair that we would apply a tempre price increase,
do you reckon that?
Speaker 2 (01:45):
And now I used to frequent that your place quite
a bit where Mary owned it, and I must come
back now that I know you know, now that I
now that you're owning it, and you sound amazing. Do
you think you'll put some people off by putting a
search out if you do it, I'm pretty clear to
say you haven't done it.
Speaker 3 (02:00):
Yeah, So look, undoubtedly some people will not like it.
I know that we do have a very loyal customer base,
and I do think to be very understanding of and
appreciate the challenges that your face as a business, which
is really amazing of them. So I think the majority
would understand if we did decide to do it. But yes,
(02:21):
we're obviously some people would be annoyed and not come.
Speaker 2 (02:24):
Kirstin. We just had a text in saying Nick five,
no problem. Ten percent marginal.
Speaker 3 (02:32):
Yeah, I really don't think it would have to go
that high. So our highest our highest cost is obviously salaries.
So we've got a team of twenty. The salary bills
pretty pretty good for the years, and that's not going
to change. There's no charge on that, right, so we
wouldn't and our rent is not going to go up,
and our insurance isn't going to go up. It's only
going to be our food prices, which is about half
a million dollars a year, which which will incurse them
(02:54):
sort of increase. So we'll just deal with it sensibly.
Speaker 2 (02:58):
Okay, have you spoken to your customers? I mean, of
course you speak to your customer, you speak to everyone
that comes in. Have you said to them, look or
has anyone mentioned it once? The article has been that
they talk to you about it. Yeah.
Speaker 3 (03:08):
There has been a few comments today and mostly really supportive,
but then one lady just said, well, if it was me,
I just put all my prices up. But I just
feel like that it's not quite as fair. So when
and when you've got prices on things like printed menus
and stuff, you can't as easily just pop them up
and down. It's going to go and reprint everything and
(03:29):
carry on. So it would be easier for us if
they could just apply some sort of temperate Searchange, I.
Speaker 2 (03:33):
Totally agree with you, And you know what, I know
as well as you know that once your prices go
up there and coming down, are they.
Speaker 3 (03:38):
No, they never do us? Well, I supply it don't.
Speaker 2 (03:40):
No, they don't. You know, do you reckon that you
could start a trend if you as the one that
started it, do you reckon? I definitely think. I guarantee
that if you actually were the first to start as
hard as it would be, that a whole lot of
other people will follow suit.
Speaker 3 (03:55):
I suspect that's the saying. Everyone's probably waiting to see
who blinks first.
Speaker 2 (03:59):
Yeah, how serious are you about making that decision of.
Speaker 3 (04:05):
That? Will? Probably he's just set for another at least
now a couple of weeks. Our biggest suppliers, the one
that costs the most each month. Haven't pulled the gun yet,
so we're waiting to see what they do. They'll they'll
probably dictate our next move. And I know that they're
planning just to sit quietly until the end of this month,
so we'll stop quietly.
Speaker 2 (04:24):
I read that that was Gilmore's right, Yeah, Gilmour's and
our and our milk supply there are two biggest costs
the months.
Speaker 3 (04:31):
So we'll see what they do.
Speaker 2 (04:33):
Yeah, I mean.
Speaker 3 (04:34):
Sucking it up at the moment. It's pretty painful for them.
Speaker 2 (04:37):
Yeah. Well I think that everyone's sucking it up.
Speaker 3 (04:39):
There.
Speaker 2 (04:39):
You're sucking it up, aren't you. Yeah, well, it.
Speaker 3 (04:41):
Hasn't had us. It hasn't had us yet to be there.
We just know it's coming coming on our next and voices.
Speaker 2 (04:47):
Hey, thanks for joining us this morning. It's great to
talk to you. And I must come back and try
Smith the Grocer's under your ownership.
Speaker 3 (04:54):
Now, do you come back. We'd love to see Okay.
Speaker 2 (04:57):
Thank you, Kirsten, the co owner of Smith the Grocer.
Speaker 1 (05:02):
For more from Wellington Mornings with Nick Mills, listen live
to news tal It'd Be Wellington from nine am weekdays,
or follow the podcast on iHeartRadio,
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talk sib.
Speaker 2 (00:12):
Kirsten, I really, I'm really interested in the story because
how close are you to deciding what you're going to do?
Speaker 3 (00:20):
Well? Our suppliers are really only started signaling that they're
going to give us either surchanges or across the board
increases on their prices in the last sort of couple
of weeks. So we've got eight key suppliers and now
four of those or five actually is of today, have
all advised that they're going to do either a surcharge
or increase their prices, So it hasn't flowed through into
(00:43):
our invoices yet, so we're just sort of keeping a
watching brief to see where it goes. To Really, do you.
Speaker 2 (00:50):
Believe that five percent will be enough.
Speaker 3 (00:53):
At this point in time? I just don't know what
that would be because we've got one supply that's increased
prices by four another one that's five, another one's three
percent surcharge. But we wouldn't have to apply that whole
surcharge to our to our things, because you know, the
goods and services that we buy is only one part
of our cost. So our whole cost base is not
(01:14):
going to go up by five percent sore. Therefore we
wouldn't need to increase all our prices by five percent,
so it would be much more modest than that.
Speaker 2 (01:20):
Okay, we've had a couple of people saying, why don't
you or us or anyone else that's involved in US
and you just put their prices up?
Speaker 3 (01:28):
Well, because then my view is that then that becomes
an enduring price rise that doesn't go back down. So
if if our suppliers are just going to hang us
with a tempree search tempre and price increase, and it
seems fair that we would apply a tempre price increase,
do you reckon that?
Speaker 2 (01:45):
And now I used to frequent that your place quite
a bit where Mary owned it, and I must come
back now that I know you know, now that I
now that you're owning it, and you sound amazing. Do
you think you'll put some people off by putting a
search out if you do it, I'm pretty clear to
say you haven't done it.
Speaker 3 (02:00):
Yeah, So look, undoubtedly some people will not like it.
I know that we do have a very loyal customer base,
and I do think to be very understanding of and
appreciate the challenges that your face as a business, which
is really amazing of them. So I think the majority
would understand if we did decide to do it. But yes,
(02:21):
we're obviously some people would be annoyed and not come.
Speaker 2 (02:24):
Kirstin. We just had a text in saying Nick five,
no problem. Ten percent marginal.
Speaker 3 (02:32):
Yeah, I really don't think it would have to go
that high. So our highest our highest cost is obviously salaries.
So we've got a team of twenty. The salary bills
pretty pretty good for the years, and that's not going
to change. There's no charge on that, right, so we
wouldn't and our rent is not going to go up,
and our insurance isn't going to go up. It's only
going to be our food prices, which is about half
a million dollars a year, which which will incurse them
(02:54):
sort of increase. So we'll just deal with it sensibly.
Speaker 2 (02:58):
Okay, have you spoken to your customers? I mean, of
course you speak to your customer, you speak to everyone
that comes in. Have you said to them, look or
has anyone mentioned it once? The article has been that
they talk to you about it. Yeah.
Speaker 3 (03:08):
There has been a few comments today and mostly really supportive,
but then one lady just said, well, if it was me,
I just put all my prices up. But I just
feel like that it's not quite as fair. So when
and when you've got prices on things like printed menus
and stuff, you can't as easily just pop them up
and down. It's going to go and reprint everything and
(03:29):
carry on. So it would be easier for us if
they could just apply some sort of temperate Searchange, I.
Speaker 2 (03:33):
Totally agree with you, And you know what, I know
as well as you know that once your prices go
up there and coming down, are they.
Speaker 3 (03:38):
No, they never do us? Well, I supply it don't.
Speaker 2 (03:40):
No, they don't. You know, do you reckon that you
could start a trend if you as the one that
started it, do you reckon? I definitely think. I guarantee
that if you actually were the first to start as
hard as it would be, that a whole lot of
other people will follow suit.
Speaker 3 (03:55):
I suspect that's the saying. Everyone's probably waiting to see
who blinks first.
Speaker 2 (03:59):
Yeah, how serious are you about making that decision of.
Speaker 3 (04:05):
That? Will? Probably he's just set for another at least
now a couple of weeks. Our biggest suppliers, the one
that costs the most each month. Haven't pulled the gun yet,
so we're waiting to see what they do. They'll they'll
probably dictate our next move. And I know that they're
planning just to sit quietly until the end of this month,
so we'll stop quietly.
Speaker 2 (04:24):
I read that that was Gilmore's right, Yeah, Gilmour's and
our and our milk supply there are two biggest costs
the months.
Speaker 3 (04:31):
So we'll see what they do.
Speaker 2 (04:33):
Yeah, I mean.
Speaker 3 (04:34):
Sucking it up at the moment. It's pretty painful for them.
Speaker 2 (04:37):
Yeah. Well I think that everyone's sucking it up.
Speaker 3 (04:39):
There.
Speaker 2 (04:39):
You're sucking it up, aren't you. Yeah, well, it.
Speaker 3 (04:41):
Hasn't had us. It hasn't had us yet to be there.
We just know it's coming coming on our next and voices.
Speaker 2 (04:47):
Hey, thanks for joining us this morning. It's great to
talk to you. And I must come back and try
Smith the Grocer's under your ownership.
Speaker 3 (04:54):
Now, do you come back. We'd love to see Okay.
Speaker 2 (04:57):
Thank you, Kirsten, the co owner of Smith the Grocer.
Speaker 1 (05:02):
For more from Wellington Mornings with Nick Mills, listen live
to news tal It'd Be Wellington from nine am weekdays,
or follow the podcast on iHeartRadio,
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