1 00:00:00,120 --> 00:00:02,960 Speaker 1: Coffee debate. That's back what we pay. What we should 2 00:00:03,000 --> 00:00:05,480 Speaker 1: be paying, it has argued, is two different things. By 3 00:00:05,519 --> 00:00:07,720 Speaker 1: the time you deal with your inflation, you'r overheads, you declined, 4 00:00:07,760 --> 00:00:09,560 Speaker 1: but that all that stuff. It should be eight dollars 5 00:00:09,680 --> 00:00:12,559 Speaker 1: eight dollars for coffee flight coffee companies managing director Richard 6 00:00:12,600 --> 00:00:15,440 Speaker 1: Corny is whether it's Richard morning to you to Mike 7 00:00:15,560 --> 00:00:17,560 Speaker 1: A's are going very well? Indeed, what sort of company 8 00:00:17,600 --> 00:00:19,880 Speaker 1: you write your multi outlet company. 9 00:00:20,600 --> 00:00:24,720 Speaker 2: One retail site in central Wellington's But we sell wholesale 10 00:00:25,320 --> 00:00:27,920 Speaker 2: throughout one hundred and dition cafes of this US throughout 11 00:00:27,960 --> 00:00:28,400 Speaker 2: the country. 12 00:00:28,560 --> 00:00:30,600 Speaker 1: Right, So as the wholesale part of the equation, that's 13 00:00:30,640 --> 00:00:32,200 Speaker 1: what keeps you afloat of you with just a bloke 14 00:00:32,240 --> 00:00:34,320 Speaker 1: on a corner selling coffees, would you be gone by now? 15 00:00:35,280 --> 00:00:38,680 Speaker 2: Yeah? Well, generally speaking, with less than we force us 16 00:00:38,680 --> 00:00:42,519 Speaker 2: in architects profit margins, it's pretty hard out there. A 17 00:00:42,560 --> 00:00:47,880 Speaker 2: lot of operators operate the cafes on a vocational basis. 18 00:00:49,159 --> 00:00:51,279 Speaker 2: Obviously there are there others that make try and make 19 00:00:51,320 --> 00:00:55,680 Speaker 2: those business elders. But similarly, the last four years as 20 00:00:55,720 --> 00:00:59,000 Speaker 2: a hospitality operator has been nothing like the previous team, 21 00:00:59,040 --> 00:00:59,560 Speaker 2: that's for sure. 22 00:00:59,640 --> 00:01:03,040 Speaker 1: No, and as yours a Wellington's story for obvious reasons, 23 00:01:03,040 --> 00:01:05,039 Speaker 1: and therefore you might be hurting more than others or not. 24 00:01:06,080 --> 00:01:08,319 Speaker 2: No, I think I think what we're experiencing is quite 25 00:01:08,360 --> 00:01:13,520 Speaker 2: consistent across the country. Definitely, Central Auckland, the inner city 26 00:01:13,640 --> 00:01:18,200 Speaker 2: has with the city rail link and the current organ 27 00:01:18,240 --> 00:01:22,000 Speaker 2: transport works is hurting as much as part of Wellington 28 00:01:22,840 --> 00:01:26,319 Speaker 2: and other major things is we're government was based. So 29 00:01:26,400 --> 00:01:29,600 Speaker 2: certainly not a Wellington unique situation. 30 00:01:30,560 --> 00:01:33,280 Speaker 1: Right if you put it at eight bucks? What do 31 00:01:33,319 --> 00:01:34,279 Speaker 1: you reckon would happen? 32 00:01:35,080 --> 00:01:39,280 Speaker 2: Oh? Yeah, well the market would react, wouldn't it. No, 33 00:01:39,600 --> 00:01:42,959 Speaker 2: it's I don't think dollars are sustainable. I think I 34 00:01:43,000 --> 00:01:46,319 Speaker 2: think what's important for people to understand is that if 35 00:01:46,880 --> 00:01:51,400 Speaker 2: if if cup coffee cup pricing kept up with in 36 00:01:51,480 --> 00:01:55,960 Speaker 2: our example of our rings increases and other overhead increases 37 00:01:55,960 --> 00:01:58,560 Speaker 2: over the last felve years relative to what we were 38 00:01:58,640 --> 00:02:00,320 Speaker 2: charging back in twenty twelve when we are opened, it 39 00:02:00,320 --> 00:02:03,880 Speaker 2: would be eight dollars ninety a cup. Wow. And you 40 00:02:03,920 --> 00:02:05,880 Speaker 2: know I'm not saying that people should be paying eight 41 00:02:05,880 --> 00:02:08,919 Speaker 2: dollars nine yar cup. I think what's important is people 42 00:02:09,000 --> 00:02:12,720 Speaker 2: understand that, you know, a cup of coffee is greater 43 00:02:12,760 --> 00:02:15,680 Speaker 2: than the some of its past and and you know, 44 00:02:16,200 --> 00:02:19,440 Speaker 2: like we've had one hundred and thirty four percent increase 45 00:02:19,480 --> 00:02:22,320 Speaker 2: in our rent since twenty twelve, paying one hundred and 46 00:02:22,280 --> 00:02:26,160 Speaker 2: sixty percent more in wages since twenty twelve, relatively speaking. 47 00:02:26,280 --> 00:02:31,400 Speaker 2: So yeah, it's really the value is got to come 48 00:02:31,400 --> 00:02:36,360 Speaker 2: from somewhere, and fe operators, hospitality operators are certainly needing 49 00:02:36,440 --> 00:02:39,919 Speaker 2: to pass on those costs to you know, to have 50 00:02:40,040 --> 00:02:40,880 Speaker 2: a business. 51 00:02:40,520 --> 00:02:43,600 Speaker 1: And at all, Yeah, you're trapped. It's the problem, aren't you, Richard. 52 00:02:43,600 --> 00:02:45,240 Speaker 1: At the end of the day, you cannot pass on 53 00:02:45,280 --> 00:02:48,280 Speaker 1: the costs that have been thrust upon you. Appreciate your insight, 54 00:02:48,400 --> 00:02:51,200 Speaker 1: Richard Corney, who's Flight Coffee company? And I think he 55 00:02:51,320 --> 00:02:54,359 Speaker 1: was was that a trainer a plane? Difficult to tell 56 00:02:54,360 --> 00:02:56,920 Speaker 1: on the background, but nevertheless he's on the move. For 57 00:02:57,040 --> 00:03:00,000 Speaker 1: more from The Mic Asking Breakfast, listen live to new 58 00:03:00,160 --> 00:03:03,040 Speaker 1: Talk set Be from six am weekdays, or follow the 59 00:03:03,080 --> 00:03:04,560 Speaker 1: podcast on iHeartRadio.