Rising business costs and cash-strapped consumers have forced a number of Kiwi hospitality businesses to close their doors.
Auckland's SPQR recently closed its doors for good, following liquidators being appointed to the establishment.
Restaurant Association CEO Marisa Bidois says the last three years have been particularly challenging for the hospitality industry.
"To be frank, we're still in a recovery position. You saw the impacts that Covid had on hospitality, and then shortly after that, many businesses faced weather events - and then we've battled with the cost of living crisis."
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Speaker 1 (00:06):
You're listening to the Sunday Session podcast with Francesca Rudgin
from News Talks EDB.
Speaker 2 (00:13):
Yes, good to have you with us. Now around the country,
we are losing some of our favorite and most iconic
hospitality venues. This week, Auckland's SPQR announced liquidation and have
closed their doors after twenty seven years of business. They
are just one in a long line of closures as
businesses battle rising costs and cash strapped consumers stay at home.
(00:33):
But why is the hospitality industry still struggling so much?
Restaurant Association CEO Marissa Bidoir is with me now. Good morning, Marissa,
more than a hey, why are restaurants and hospitals struggling
so much? Is it COVID? Was that where the damage
was done? Or is it the cost of living crisis
we're dealing with now and people staying at home?
Speaker 3 (00:55):
Look. To be honest, it is a combination of mentioned.
The last three years have been particularly challenging for the
hospitality industry, and to be frank, we're still in a
recovery position. You think about the impacts that COVID had
on hospitality and then shortly after that many of our
businesses faced weather events, and then we've battled with the
(01:18):
cost of living crisis and a downturn of customers. So
it really has been a perfect storm as far as
impacts on our sector go.
Speaker 2 (01:25):
When a recession hits, no matter what industry you're in,
we kind of feel that, you know, if you're in
a good, solid position, you can ride it out. Isn't
that simple for hospitality?
Speaker 3 (01:35):
Look, I think because many of our businesses did take
out loans during COVID to survive some of those more
difficult times, many have carried that debt through into these
challenging sort of economic times now, so that has had
an impact on our businesses as well.
Speaker 2 (01:53):
So many places around the country are being affected. But
when institutions like SPQR in Auckland go into liquidation, it
really hits home how bad the situation is. So what
does our hospo future look like?
Speaker 3 (02:06):
Well, that's a great question, you know, and as you said,
it is absolutely tragic to see some of our iconic
businesses closing. Places like SPQR have had such a huge impact,
you know, within within our sector. Many of our leaders
within the industry right now, you know, head jobs at SPQR.
So it really is it really does affect the psyche
(02:27):
of our industry. I think when we see those, yeah,
iconic businesses close, but what does the future hold for hospitality. Look,
I think there is light at the end of the tunnel.
Our businesses. Many of our businesses are resilient, they're innovative,
and they are working hard right now to you know,
attract customers, to review their the way they're doing their business,
(02:51):
keeping eye on costs. So you know, there are a
lot of things that that businesses are doing right now
to weather the storm.
Speaker 2 (02:58):
Does working from home have an impact? Do you think?
Speaker 1 (03:00):
Mersa?
Speaker 3 (03:01):
Absolutely, That's that's had a big impact on our industry.
Just that customer behavior oral shift has really impacted businesses,
particularly in our cdds. For example, businesses that would rely
on maybe a lunch trade from people grabbing, you know,
a bite to eat during their break, A lot of
that has has really fallen away. So the afterwork strength
(03:25):
thing as well. On a Friday, many businesses have reported that,
you know, they were busier on Fridays, and many, especially
in our city centers, have reported that that's changed and
that really is due to that sort of that behavior
shift and the working from home phenomenon. That we've seen
happen over the last few years.
Speaker 2 (03:43):
It might depend on where you are, but is this
all sort of having an effect on New Zealand's tourism brand?
Is it affect and tourism.
Speaker 3 (03:50):
Look, it's interesting that you say that because we have seen,
you know, our visitor arrivals have flattened. So this is
sort of a challenge coming at our industry, and the
wider tourism industry as well, is basically dealing with lower
than usual visitors coming into the country. And this absolutely
(04:12):
has an impact on our businesses.
Speaker 2 (04:15):
Any good news stories business is coming up with wise
to deal with the challenges of winter and the cost
of living.
Speaker 3 (04:22):
Yeah. Absolutely. Look, honestly, hospitality business owners are some of
the most innovative and committed people I've ever met, and
they are coming up with all sorts of different ways
to weather the storms. I think some of the things
that are going on right now, like I said, people
are reviewing their marketing plans, They're reaching out to their
(04:43):
local communities in some instances, and in fact, I was
speaking to a member the other day. He said he'd
been in hospitality for forty four years and this is
some of the toughest times that he'd ever faced, and
he can pose this email out to his loyal customers saying,
you know, I'd love it if you could support me
during these times. And he had this influx of people
coming into his store just to buy a coffee say hello.
(05:06):
Those are the sorts of relationships, you know, that keep
our businesses alive and hopeful for the future.
Speaker 2 (05:11):
Marissa, just very quickly, I see the Ministry for Priming
Industries is putting a new living on food outlets for
food safety compliance. How helpful is that right now?
Speaker 3 (05:20):
Look, we certainly put in a submission on this, and
we didn't think the timing was great when these submissions
were called for. You know, all of these things add
up on the compliance costs are another pressure on our businesses,
so the timing isn't great.
Speaker 2 (05:37):
Maurissa, thanks so much for your time this morning. Very
much appreciated. That was Restaurant Association CEO Marissa Boudoir, and
I would be keen to hear from you if you
are in the hospitality industry as well. You can text
on ninety two ninety two for more.
Speaker 1 (05:52):
From the Sunday session with Francesca Rudkin. Listen live to
news talks. It'd be from nine am Sunday, or follow
the podcast on iHeartRadio
You're listening to the Sunday Session podcast with Francesca Rudgin
from News Talks EDB.
Speaker 2 (00:13):
Yes, good to have you with us. Now around the country,
we are losing some of our favorite and most iconic
hospitality venues. This week, Auckland's SPQR announced liquidation and have
closed their doors after twenty seven years of business. They
are just one in a long line of closures as
businesses battle rising costs and cash strapped consumers stay at home.
(00:33):
But why is the hospitality industry still struggling so much?
Restaurant Association CEO Marissa Bidoir is with me now. Good morning, Marissa,
more than a hey, why are restaurants and hospitals struggling
so much? Is it COVID? Was that where the damage
was done? Or is it the cost of living crisis
we're dealing with now and people staying at home?
Speaker 3 (00:55):
Look. To be honest, it is a combination of mentioned.
The last three years have been particularly challenging for the
hospitality industry, and to be frank, we're still in a
recovery position. You think about the impacts that COVID had
on hospitality and then shortly after that many of our
businesses faced weather events, and then we've battled with the
(01:18):
cost of living crisis and a downturn of customers. So
it really has been a perfect storm as far as
impacts on our sector go.
Speaker 2 (01:25):
When a recession hits, no matter what industry you're in,
we kind of feel that, you know, if you're in
a good, solid position, you can ride it out. Isn't
that simple for hospitality?
Speaker 3 (01:35):
Look, I think because many of our businesses did take
out loans during COVID to survive some of those more
difficult times, many have carried that debt through into these
challenging sort of economic times now, so that has had
an impact on our businesses as well.
Speaker 2 (01:53):
So many places around the country are being affected. But
when institutions like SPQR in Auckland go into liquidation, it
really hits home how bad the situation is. So what
does our hospo future look like?
Speaker 3 (02:06):
Well, that's a great question, you know, and as you said,
it is absolutely tragic to see some of our iconic
businesses closing. Places like SPQR have had such a huge impact,
you know, within within our sector. Many of our leaders
within the industry right now, you know, head jobs at SPQR.
So it really is it really does affect the psyche
(02:27):
of our industry. I think when we see those, yeah,
iconic businesses close, but what does the future hold for hospitality. Look,
I think there is light at the end of the tunnel.
Our businesses. Many of our businesses are resilient, they're innovative,
and they are working hard right now to you know,
attract customers, to review their the way they're doing their business,
(02:51):
keeping eye on costs. So you know, there are a
lot of things that that businesses are doing right now
to weather the storm.
Speaker 2 (02:58):
Does working from home have an impact? Do you think?
Speaker 1 (03:00):
Mersa?
Speaker 3 (03:01):
Absolutely, That's that's had a big impact on our industry.
Just that customer behavior oral shift has really impacted businesses,
particularly in our cdds. For example, businesses that would rely
on maybe a lunch trade from people grabbing, you know,
a bite to eat during their break, A lot of
that has has really fallen away. So the afterwork strength
(03:25):
thing as well. On a Friday, many businesses have reported that,
you know, they were busier on Fridays, and many, especially
in our city centers, have reported that that's changed and
that really is due to that sort of that behavior
shift and the working from home phenomenon. That we've seen
happen over the last few years.
Speaker 2 (03:43):
It might depend on where you are, but is this
all sort of having an effect on New Zealand's tourism brand?
Is it affect and tourism.
Speaker 3 (03:50):
Look, it's interesting that you say that because we have seen,
you know, our visitor arrivals have flattened. So this is
sort of a challenge coming at our industry, and the
wider tourism industry as well, is basically dealing with lower
than usual visitors coming into the country. And this absolutely
(04:12):
has an impact on our businesses.
Speaker 2 (04:15):
Any good news stories business is coming up with wise
to deal with the challenges of winter and the cost
of living.
Speaker 3 (04:22):
Yeah. Absolutely. Look, honestly, hospitality business owners are some of
the most innovative and committed people I've ever met, and
they are coming up with all sorts of different ways
to weather the storms. I think some of the things
that are going on right now, like I said, people
are reviewing their marketing plans, They're reaching out to their
(04:43):
local communities in some instances, and in fact, I was
speaking to a member the other day. He said he'd
been in hospitality for forty four years and this is
some of the toughest times that he'd ever faced, and
he can pose this email out to his loyal customers saying,
you know, I'd love it if you could support me
during these times. And he had this influx of people
coming into his store just to buy a coffee say hello.
(05:06):
Those are the sorts of relationships, you know, that keep
our businesses alive and hopeful for the future.
Speaker 2 (05:11):
Marissa, just very quickly, I see the Ministry for Priming
Industries is putting a new living on food outlets for
food safety compliance. How helpful is that right now?
Speaker 3 (05:20):
Look, we certainly put in a submission on this, and
we didn't think the timing was great when these submissions
were called for. You know, all of these things add
up on the compliance costs are another pressure on our businesses,
so the timing isn't great.
Speaker 2 (05:37):
Maurissa, thanks so much for your time this morning. Very
much appreciated. That was Restaurant Association CEO Marissa Boudoir, and
I would be keen to hear from you if you
are in the hospitality industry as well. You can text
on ninety two ninety two for more.
Speaker 1 (05:52):
From the Sunday session with Francesca Rudkin. Listen live to
news talks. It'd be from nine am Sunday, or follow
the podcast on iHeartRadio
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