1
00:00:00,080 --> 00:00:02,160
Speaker 1: So you might have noticed of late in the spending numbers,

2
00:00:02,160 --> 00:00:04,960
Speaker 1: although many are still struggling. The hospital sector seeing a bump.

3
00:00:05,000 --> 00:00:08,360
Speaker 1: Their annual report shows record sales of fifteen point nine billion,

4
00:00:08,360 --> 00:00:11,520
Speaker 1: takeaways up three point two percent to four point four billion, cafes,

5
00:00:11,560 --> 00:00:13,960
Speaker 1: restaurants up zero point three percent to seven point eight billion.

6
00:00:13,960 --> 00:00:17,360
Speaker 1: International visitor spending our climb nine point two percent now

7
00:00:17,400 --> 00:00:20,200
Speaker 1: to eighty six percent of pre COVID. Marissa bidwires the

8
00:00:20,239 --> 00:00:22,240
Speaker 1: CEO of the Restaurant Association, and is with us.

9
00:00:22,239 --> 00:00:23,599
Speaker 2: Good morning, Good morning, Mike.

10
00:00:23,840 --> 00:00:25,959
Speaker 1: How do we argue two different things? You argue that

11
00:00:26,000 --> 00:00:28,000
Speaker 1: things are tight, they're strained, and yet you're pulling in

12
00:00:28,040 --> 00:00:29,600
Speaker 1: record money. How do we explain that?

13
00:00:30,920 --> 00:00:33,519
Speaker 2: Well, Look, as you've mentioned, we've seen record sales for

14
00:00:33,560 --> 00:00:36,559
Speaker 2: the year, but that doesn't necessarily mean record profits. The

15
00:00:36,600 --> 00:00:39,400
Speaker 2: one point four percent revenue growth that we've seen has

16
00:00:39,479 --> 00:00:43,200
Speaker 2: really been eroded by rising costs. Food prices are at

17
00:00:43,200 --> 00:00:46,400
Speaker 2: four point six percent, wages continue to climb, and insurance

18
00:00:46,440 --> 00:00:48,519
Speaker 2: and rent have all gone up as well. So while

19
00:00:48,560 --> 00:00:51,080
Speaker 2: the numbers look good on paper, margins are tighter than

20
00:00:51,080 --> 00:00:52,400
Speaker 2: ever for most operators.

21
00:00:52,520 --> 00:00:54,760
Speaker 1: We have seen those spending increase in hospow for the

22
00:00:54,840 --> 00:00:57,040
Speaker 1: last couple of months. There's something going on there. Do

23
00:00:57,040 --> 00:00:59,040
Speaker 1: you know what it is? Is it tourism or is

24
00:00:59,040 --> 00:01:00,880
Speaker 1: it locals just fed up and they want a sandwich

25
00:01:00,880 --> 00:01:01,280
Speaker 1: in the beer.

26
00:01:02,240 --> 00:01:05,240
Speaker 2: Look, from what we're seeing, it is an uptick in

27
00:01:05,280 --> 00:01:08,160
Speaker 2: tourism numbers, which is such a positive sign for our

28
00:01:08,200 --> 00:01:10,120
Speaker 2: industry and very much welcomed.

29
00:01:10,720 --> 00:01:13,440
Speaker 1: Is it the immigrant issue as well, in the sense

30
00:01:13,480 --> 00:01:16,520
Speaker 1: that are we over hospited? In other words, people come

31
00:01:16,520 --> 00:01:17,800
Speaker 1: to the country and they go and I'm going to

32
00:01:17,800 --> 00:01:19,920
Speaker 1: buy myself a cafe, whether they know what they're doing

33
00:01:20,040 --> 00:01:20,240
Speaker 1: or not.

34
00:01:21,319 --> 00:01:24,000
Speaker 2: Look, I think, you know, hospitality is a very accessible

35
00:01:24,040 --> 00:01:26,640
Speaker 2: business model, but I think that's what makes it dynamic.

36
00:01:26,760 --> 00:01:30,240
Speaker 2: That's why as a consumer of hospitality, you know, you're

37
00:01:30,280 --> 00:01:33,039
Speaker 2: in a great position. There's lots of people wanting to

38
00:01:33,040 --> 00:01:37,080
Speaker 2: open businesses, try creative, you know sort of business models,

39
00:01:37,280 --> 00:01:41,360
Speaker 2: So it really is great for consumers. However, it does

40
00:01:41,440 --> 00:01:44,600
Speaker 2: mean that there is some risk with that business model.

41
00:01:44,640 --> 00:01:47,760
Speaker 2: That's why we always encourage people to seek business advice

42
00:01:47,800 --> 00:01:49,840
Speaker 2: before opening the doors.

43
00:01:50,040 --> 00:01:53,160
Speaker 1: People still seem to be piling in though, don't they.

44
00:01:53,680 --> 00:01:57,360
Speaker 2: Well, look it is we are seeing some subdued numbers

45
00:01:57,360 --> 00:02:01,240
Speaker 2: in terms of diners. Your household budgets at Raine. But

46
00:02:01,320 --> 00:02:03,840
Speaker 2: people are still dining out. They're just adjusting the way

47
00:02:03,760 --> 00:02:08,440
Speaker 2: they're dining out, spending a bit less, grabbing the shared plates.

48
00:02:08,520 --> 00:02:11,600
Speaker 2: They still want to dine out. Kiwi's love Hospit and

49
00:02:12,400 --> 00:02:15,640
Speaker 2: that's why our industry continues to keep moving forward.

50
00:02:15,760 --> 00:02:17,840
Speaker 1: There's also a luck story, isn't there If you're near

51
00:02:17,840 --> 00:02:20,040
Speaker 1: the CRL in Auckland, if you're not in the tourist

52
00:02:20,120 --> 00:02:22,880
Speaker 1: area like Queenstown. You know what I'm saying. If you're

53
00:02:22,960 --> 00:02:25,160
Speaker 1: in the wrong place, you've got trouble and there's not

54
00:02:25,200 --> 00:02:26,160
Speaker 1: a lot you can do about it.

55
00:02:26,720 --> 00:02:29,040
Speaker 2: Absolutely, and we've seen that. We've seen, you know, some

56
00:02:29,200 --> 00:02:33,360
Speaker 2: regions have been hit harder. Our CBDs are struggling as well.

57
00:02:33,480 --> 00:02:35,560
Speaker 2: We haven't seen the sort of foot traffic get back

58
00:02:35,639 --> 00:02:39,120
Speaker 2: to pre COVID levels yet. So look, there is it's

59
00:02:39,200 --> 00:02:41,320
Speaker 2: a two feed economy in a lot of ways. There

60
00:02:41,320 --> 00:02:44,079
Speaker 2: are some areas that are doing very well and others

61
00:02:44,080 --> 00:02:44,840
Speaker 2: that are struggling.

62
00:02:44,919 --> 00:02:48,560
Speaker 1: All right, Marissa appreciating Marissa Bidwell, chief executive of the

63
00:02:48,600 --> 00:02:52,480
Speaker 1: Restaurants Association. For more from the Mic asking Breakfast listen

64
00:02:52,560 --> 00:02:55,480
Speaker 1: live to news talks. It'd be from six am weekdays

65
00:02:55,720 --> 00:02:57,760
Speaker 1: or follow the podcast on iHeartRadio