Mike's Minute: Are we over-cafe'd?

We have all seen it. I have seen it a good number of times. 

The café that was exemplary, sold, the new owner changes the menu, brings in a few kids to serve, and then wonders why six months later they are out of business. 

As the hospitality people yet again told their tale of woe, and do not get me wrong, times have been tight and many an outlet has struggled, but as the new numbers got rolled out for the obligatory headline, it is probably time to get a bit honest  about a sector that at times is its own worst enemy. 

In the past 12 months, 2,564 hospitality outlets have closed. That’s an increase of 19%. As a stat it's miserable. 

But ask yourself this: are all the cafes gone? No. 

So is it possible we were over-cafe'd? 

Is part of the problem with hospitality the fact anyone can join? You simply write a cheque, put an apron on, and you are in the hospitality game. 

Do you know what you are doing? Are you interested in excelling or are you looking for an easy job and an easy job for your family? 

Are you providing something new, or better, or different, or just adding to the collection of people who pedal paninis and bowls of cappuccino? 

We talk a lot about the two step, or two stage, economy. Normally it's rural vs urban, Auckland vs Queenstown. 

But there is another two step story: the people who are good at what they do and those who aren't. 

This doesn’t just apply to hospitality. But hospitality is the standout example because it is one of those sectors where anyone can join and you can be anything from exceptional to useless, and a lot of things in-between. 

In 1990 Paul Keating, then Australian Treasurer, famously said this is the recession we had to have. Australia had not known a recession and had always been the lucky country. 

But part of the argument was a recession cleans out the hopeless. It tidies an economy up. 

The strong survive because they hustle and adjust. The weak wither and die and out of the renewal starts something afresh. 

A lot of people liquidating only tells you a fraction of the story and the story is supposed to make you feel bad. 

It shouldn’t. It's life. If you are good and determined and work hard in hospitality or anywhere else, you'll be fine. 

If you are really determined, you will be more than fine. 

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Episode Transcript

Speaker 1 (00:00):
We've all seen it. I mean I've seen it a

(00:01):
good number of times myself personally. The cafe. We all
know the story of the cafe that was exemplary right sold,
new owner changes the menu, brings in a few kids
to serve, and wonders why six months later they're out
of business as the Hospbow people yet again told their
tale of woe. Do not get me wrong. I mean
times have been tight, yes, and many an outlet has struggled.
We know that. But as the new numbers got rolled

(00:22):
out for the obligatory headline that you might have seen,
it's probably time, I think, to get a little bit
honest about a sector that at times is its own
worst enemy. So the numbers in the past twelve months,
two thy five hundred and sixty four HOSPO outlets have close.
That's an increase of nineteen percent. As a stat looks miserable,
but ask yourself this, are all the cafes gone? No,

(00:46):
so as it possible, we were over cafed. As part
of the problem with HOSPO the fact anyone can join.
You simply write a check, put on an apron and
you're in the HOSPOW game. Do you know what you're doing.
Does anyone ask these questions, Do you know what you're doing?
Are you interested in a selling or are you looking
for an easy job and an easy job for your family?
Are you providing something new or better or different or

(01:07):
just adding to the collection of people who pedal paninis
and bowls of cappuccino. We talk a lot about the
two step or two stage economy. Normally it's rural versus urban,
Auckland versus Queenstonne. But there's another two step economy, the
people who are good and the people who aren't. Now
this doesn't just apply to HOSPO, of course, but HOSPO
is the standout example because it's one of those sectors
where one anyone can join, and two you can be

(01:29):
anything from exceptional, too useless, and a lot of things
in between. See in nineteen ninety is thinking about this
The other day nineteen ninety Poul Keating, then Australian Treasurer,
famously said, this is the recession we had to have.
So Australia had not known a recession. That always been
the so called lucky country. But part of the argument
was a recession cleans out the hopeless. It tidy is
an economy up. The strong survive because they hustle, They

(01:52):
adjust the week whither and they die, and out of
that renewal starts something afresh. A lot of people liquidating
only tells you a fraction of the st story, and
the story is supposed to make you feel bad. Of
course it shouldn't, because it's life. If you are good
and determined and work hard in hospital or anywhere else,
you'll be fine. If you're really determined, you'll be more

(02:13):
than fine. For more from The Mic Asking Breakfast, listen
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