Steve Armitage: Hospitality NZ CEO on the price increases for alfresco dining

Alfresco dining's coming at a high cost to hospitality owners.  

Outdoor dining fees in Queenstown are being hiked almost 1600%, in some cases costing businesses $51,000 dollars a year. 

Meanwhile, the Tauranga City Council's introducing the fees at $150 per square metre, just below Auckland's highest fee of $154 dollars per square metre.  

Hospitality NZ chief executive Steve Armitage told Mike Hosking that public spaces allow businesses to expand and attract more customers.  

He says businesses aren't arguing against paying fair charges to use public spaces, but can't weather these increases at this current time.  

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
If hospow wasn't hard enough, we now have ourselves in
el Fresco debates. So council's raking it in from business
through outdoor fees. Queenstown there's a claim the outdoor overheads
are more than the restaurant's rent to how long and
having trouble as well. Hospital in New Zealand CEO Steve
Armitage or the Steve Morning.

Speaker 2 (00:15):
Good morning Mike.

Speaker 1 (00:15):
This old sitting on the street. For those of us
who have been around a while, we've argued for this
for the years. Is this just a land slash money
grab for councils who are short of doe at the moment.

Speaker 2 (00:25):
Yeah, I think you've covered over a long period of
time the predicament the local government faces. They've got significant
cross pressures and obviously limited ability to raise revenue. But
you know, public spaces give restaurants, cafes and bars a
chance to expand their businesses and to attract customers. That's
to benefits for the hospitality businesses. So we're not arguing
against paying fair charge to use public space, but a

(00:45):
hospitality businesses just can't weather these increases at this current time.

Speaker 1 (00:50):
Around which is there variability around the country. I mean,
do they make it up as they go along.

Speaker 2 (00:56):
Yeah, there is variability, and as you've highlighted, yeah, obviously
there's been a bit of a focus on hot on it.
But Queenstown's where we're seeing most acutely. And one of
our members the year is highlighted that their annual costs
have gone up from three thousand, two hundred dollars a year,
so more than fifty one thousand. What you know, that's
sixteen one thousand callers correct.

Speaker 1 (01:15):
How many tables and chairs they have on the footpath they.

Speaker 2 (01:18):
Have to sell. They're telling us they're having to sell
another sixty thousand drinks per year just to pay that off.

Speaker 1 (01:26):
For a week.

Speaker 2 (01:27):
Yeah, it's it's hard to get your head around. And
as I say that, there's no there's no approach to
this in a graduated sense. So it's just people are
getting their renewed licenses and being hit with us in
one and it's it's going to hollow out our cities
and town centers and and.

Speaker 1 (01:43):
They don't the councils don't see the value of having
you know, I don't know successful businesses in their area,
et cetera. It's just a money grab.

Speaker 2 (01:53):
It's it's hard to see it in the other way.
But as we all understand the cost pressures that the
local government's facing, they're finding it hard to generate revenue.
But there has to be a common sense approach to this.
You can't just do this in one.

Speaker 1 (02:03):
Day, going look, I know you want to charge me
six bucks for my coffee, but I'm a bit tight
at the moment, say look, I'll give you three and
you go okay. I mean that's not how it works.
You don't just go around, you know, making bills up
depending on what your mood is or what your bank balances.

Speaker 2 (02:19):
No, so it'd be fascinating for you to get the
relevant balances on to explain the process that they've undertaken
you because the consultation has been a pretty.

Speaker 1 (02:26):
Shambolic Okay, all right, we will. Actually it's a very
good challenge. Sam onto it please, counsels, Let's get some
Let's get some Steve Armitage there by the way Hospitality
in New Zealand.

Speaker 2 (02:36):
For more from the Mic Asking Breakfast, listen live to
news talks.

Speaker 1 (02:40):
It'd be from six am weekdays, or follow the podcast
on iHeartRadio.