1 00:00:05,600 --> 00:00:06,040 Speaker 1: Kielda. 2 00:00:06,120 --> 00:00:09,200 Speaker 2: I'm Chelsea Daniels and this is the Front Page, a 3 00:00:09,280 --> 00:00:17,799 Speaker 2: daily podcast presented by the New Zealand Herald. It's tough 4 00:00:17,840 --> 00:00:21,760 Speaker 2: out there for New Zealand's hospitality industry. The rising cost 5 00:00:21,800 --> 00:00:24,240 Speaker 2: of living in the past few years has seen everyone 6 00:00:24,360 --> 00:00:28,080 Speaker 2: tightening their belts, and the skyrocketing cost of food in 7 00:00:28,120 --> 00:00:32,920 Speaker 2: particular has been cutting into people's disposable income, with overheads 8 00:00:32,920 --> 00:00:35,600 Speaker 2: increasing at the same time as patrons are cutting back 9 00:00:35,640 --> 00:00:38,440 Speaker 2: on their spending. It's no wonder we've seen a series 10 00:00:38,479 --> 00:00:41,960 Speaker 2: of beloved bars and restaurants closing their doors for good. 11 00:00:43,880 --> 00:00:46,959 Speaker 2: So what's next for the industry and how can these 12 00:00:47,000 --> 00:00:51,080 Speaker 2: businesses adapt to changing times. Today on the Front Page, 13 00:00:51,120 --> 00:00:55,320 Speaker 2: we're joined by Herald Deputy Lifestyle Editor Johanna Thornton and 14 00:00:55,480 --> 00:01:00,160 Speaker 2: aut Hospitality and Tourism professor David Williamson to talk about 15 00:01:00,200 --> 00:01:02,240 Speaker 2: the state of the sector and where. 16 00:01:02,000 --> 00:01:03,240 Speaker 3: It needs to go from here. 17 00:01:06,800 --> 00:01:09,440 Speaker 2: Johanna, can you run us through some of the restaurants 18 00:01:09,440 --> 00:01:11,640 Speaker 2: that have closed down so far this year? 19 00:01:11,760 --> 00:01:14,640 Speaker 3: Unfortunately there might be a few, too many to name. 20 00:01:15,080 --> 00:01:17,240 Speaker 4: Yeah, there's a few. I mean, I suppose the biggest 21 00:01:17,319 --> 00:01:20,880 Speaker 4: or the most shocking was Espequre, which closed in July 22 00:01:21,080 --> 00:01:24,880 Speaker 4: after thirty two years. We had Madame George on Kodunghappy Road, 23 00:01:24,880 --> 00:01:27,200 Speaker 4: which was a huge loss. It's one of weba's top 24 00:01:27,200 --> 00:01:30,920 Speaker 4: fifty restaurants last year. There was also Floor on k 25 00:01:31,120 --> 00:01:32,960 Speaker 4: Road as well, which is a cute little wine bar. 26 00:01:33,800 --> 00:01:37,920 Speaker 4: Homeland is closed down. Orphan's Kitchen Omni which is a 27 00:01:37,920 --> 00:01:42,640 Speaker 4: little yakatory spot on Dominion Road. Stanley of Winebar and Milford. 28 00:01:43,280 --> 00:01:45,760 Speaker 4: We also had Conch which was more sort of a 29 00:01:45,800 --> 00:01:49,960 Speaker 4: bar and restaurant, the Wine Cellar and Tiger Burger is 30 00:01:50,000 --> 00:01:51,040 Speaker 4: another one that's closed. 31 00:01:51,280 --> 00:01:53,680 Speaker 3: God, there's so many. What have some of the reasons 32 00:01:53,720 --> 00:01:54,960 Speaker 3: been behind their closures? 33 00:01:55,520 --> 00:01:58,160 Speaker 4: There's a few and Madame George said it was the 34 00:01:58,240 --> 00:02:01,840 Speaker 4: economic downturn. Danleyev said that there were a host of 35 00:02:01,880 --> 00:02:06,040 Speaker 4: reasons like the pandemic with events and strained economic conditions, 36 00:02:06,680 --> 00:02:09,560 Speaker 4: and I actually saw the Restaurant Association reported in a 37 00:02:09,600 --> 00:02:12,720 Speaker 4: recent survey that the main challenges businesses are citing is 38 00:02:13,160 --> 00:02:14,280 Speaker 4: just customer downturn. 39 00:02:14,760 --> 00:02:18,320 Speaker 2: David, from your years of experience in the hospitality industry, 40 00:02:18,600 --> 00:02:21,400 Speaker 2: is this spate of closures unusual or is it kind 41 00:02:21,400 --> 00:02:22,440 Speaker 2: of par for the course. 42 00:02:22,960 --> 00:02:26,640 Speaker 5: It's sort of hard to differentiate that it is an 43 00:02:26,760 --> 00:02:27,720 Speaker 5: unusual time. 44 00:02:27,840 --> 00:02:29,279 Speaker 6: I'm not sure that number. 45 00:02:29,000 --> 00:02:32,639 Speaker 5: Of closures is particularly different, but I think what is 46 00:02:32,680 --> 00:02:36,240 Speaker 5: different is that people are really struggling in this sector, 47 00:02:36,320 --> 00:02:39,680 Speaker 5: and I think we're going to see more closures coming through. 48 00:02:40,200 --> 00:02:42,240 Speaker 5: I was talking to a couple of veterans from the 49 00:02:42,280 --> 00:02:46,720 Speaker 5: industry recently and they were adding to that suggestion of 50 00:02:47,280 --> 00:02:51,160 Speaker 5: what's really going on is not just the difficulties right now, 51 00:02:51,639 --> 00:02:55,600 Speaker 5: but the history of really impactful changes over the last 52 00:02:56,040 --> 00:02:59,400 Speaker 5: sort of period since COVID. So you have to understand 53 00:02:59,400 --> 00:03:02,799 Speaker 5: that this industry, you know, was shut down or massively 54 00:03:02,840 --> 00:03:05,840 Speaker 5: disrupted for a number of years through COVID, when the 55 00:03:05,880 --> 00:03:09,440 Speaker 5: boarders shut they had huge staff shortages. Then you have 56 00:03:09,560 --> 00:03:12,120 Speaker 5: those weather events. Just as we're coming out of COVID 57 00:03:12,120 --> 00:03:14,800 Speaker 5: and starting to recover from that, we get smashed with 58 00:03:14,880 --> 00:03:18,080 Speaker 5: weather events, which was really impactful on the industry. And 59 00:03:18,200 --> 00:03:20,920 Speaker 5: then you have, yeah, the high inflation, cost of living. 60 00:03:21,400 --> 00:03:24,440 Speaker 5: People have a lot less discretionary income to spend on 61 00:03:24,480 --> 00:03:27,639 Speaker 5: things like restaurants, cost of goods. For these industries that 62 00:03:27,760 --> 00:03:31,440 Speaker 5: record highs, they are paying top interest rates on any 63 00:03:31,480 --> 00:03:32,520 Speaker 5: debt they're holding. 64 00:03:32,960 --> 00:03:35,080 Speaker 6: There's perceptions of higher crime in. 65 00:03:35,120 --> 00:03:37,760 Speaker 5: The inner city for people in Auckland who are coming 66 00:03:37,800 --> 00:03:41,000 Speaker 5: in to dine out at night. So you know, there's 67 00:03:41,040 --> 00:03:43,400 Speaker 5: an awful lot going on and it's just been one 68 00:03:43,520 --> 00:03:48,600 Speaker 5: challenge after another. So a lot of these businesses are small, standalone, 69 00:03:48,760 --> 00:03:52,839 Speaker 5: own or operated businesses. They don't have huge amounts of 70 00:03:53,040 --> 00:03:57,480 Speaker 5: capital reserves to survive periods like this. So it's not 71 00:03:57,520 --> 00:03:59,720 Speaker 5: so much a question I think of, gosh, why are 72 00:04:00,040 --> 00:04:02,240 Speaker 5: staurants going down? At the moment, it's a question of 73 00:04:02,280 --> 00:04:05,320 Speaker 5: how on earth are they not going down given you know, 74 00:04:05,440 --> 00:04:08,240 Speaker 5: the conditions that we've had over the past few years. 75 00:04:11,720 --> 00:04:14,520 Speaker 1: For decades, Aucklanders have enjoyed a long lunch in the 76 00:04:14,600 --> 00:04:17,120 Speaker 1: sun at Ponsomby Institution SPQR. 77 00:04:17,600 --> 00:04:18,320 Speaker 7: But now the. 78 00:04:18,320 --> 00:04:21,520 Speaker 1: Doors are shout and that's a liquidation, owing creditors over 79 00:04:21,640 --> 00:04:25,960 Speaker 1: two million dollars, yet another casualty of rising costs and 80 00:04:26,000 --> 00:04:27,960 Speaker 1: people keeping their wallets firmly shut. 81 00:04:32,080 --> 00:04:35,920 Speaker 2: Johanna, can you explain to us what happened with SPQR 82 00:04:36,080 --> 00:04:36,720 Speaker 2: in particular? 83 00:04:36,960 --> 00:04:39,280 Speaker 4: Yeah, well, I mean, I suppose the announcement seemed pretty 84 00:04:39,320 --> 00:04:41,680 Speaker 4: dramatic when they said they were closing in July, but 85 00:04:41,839 --> 00:04:44,440 Speaker 4: I think it had definitely, you know, the quality of 86 00:04:44,480 --> 00:04:47,000 Speaker 4: the food maybe had dropped off in recent years and 87 00:04:47,040 --> 00:04:48,880 Speaker 4: it wasn't sort of the hottest spot to be anymore 88 00:04:48,880 --> 00:04:51,640 Speaker 4: where it had been in the past, and owner Chris 89 00:04:51,760 --> 00:04:54,120 Speaker 4: Rupe just released a really brief statement saying that he 90 00:04:54,240 --> 00:04:56,880 Speaker 4: was really sorry for the current situation and sort of 91 00:04:56,920 --> 00:05:00,200 Speaker 4: encourage people to get out there and support hospitality. It 92 00:05:00,200 --> 00:05:02,440 Speaker 4: turned out they were placed into liquidation with the business 93 00:05:02,440 --> 00:05:05,280 Speaker 4: owing more than two million in land revenue and it 94 00:05:05,320 --> 00:05:08,760 Speaker 4: owes over one hundred thousand two staff in unpaid wages 95 00:05:08,800 --> 00:05:11,960 Speaker 4: and holiday pay. And then The Herald also reported that 96 00:05:12,080 --> 00:05:16,640 Speaker 4: the business that Ownsespecure withdrew nearly one point four million 97 00:05:16,880 --> 00:05:18,920 Speaker 4: from the business before it went into liquidation. So I 98 00:05:18,960 --> 00:05:21,000 Speaker 4: think we're going to hear a lot more about that story. 99 00:05:21,240 --> 00:05:23,920 Speaker 3: It is quite jarring when some of our favorite places close. 100 00:05:24,040 --> 00:05:27,120 Speaker 2: Hey, I mean Peter Gordon's Homeland closed this year's citing 101 00:05:27,120 --> 00:05:30,720 Speaker 2: issues with renewing its lease. How often is an issue 102 00:05:31,000 --> 00:05:33,400 Speaker 2: like that to blame for a space taking on a 103 00:05:33,440 --> 00:05:34,040 Speaker 2: new life. 104 00:05:34,120 --> 00:05:36,719 Speaker 4: Well, I mean I heard that the problem with Homeland 105 00:05:36,880 --> 00:05:40,440 Speaker 4: was there's a massive new retirement village going in there 106 00:05:40,440 --> 00:05:43,200 Speaker 4: called Cracker Bay. So I think the development of that 107 00:05:43,279 --> 00:05:47,000 Speaker 4: whole West Haven area didn't include keeping homeland there, So 108 00:05:47,440 --> 00:05:49,719 Speaker 4: I'm not sure how often you know a lease is 109 00:05:49,760 --> 00:05:50,159 Speaker 4: to blame. 110 00:05:50,360 --> 00:05:52,640 Speaker 5: Yeah, I think there's a whole range of problems like 111 00:05:52,680 --> 00:05:56,200 Speaker 5: that that certainly would finish off a lot of places. 112 00:05:56,560 --> 00:06:00,520 Speaker 5: But yeah, again, I think it's a more complet and 113 00:06:00,680 --> 00:06:05,880 Speaker 5: a multifaceted number of pressures which brings these organizations to 114 00:06:05,960 --> 00:06:08,760 Speaker 5: the edge of collapse. I think what is interesting is 115 00:06:09,040 --> 00:06:11,760 Speaker 5: it's such a resilient and it's such an innovative industry. 116 00:06:11,800 --> 00:06:15,719 Speaker 5: I often describe restaurants that's extremely nimble, and so you know, 117 00:06:15,800 --> 00:06:19,360 Speaker 5: at the moment where you have these raally difficult trading conditions, 118 00:06:19,800 --> 00:06:24,159 Speaker 5: hospitality shows up as an area where businesses do suffer 119 00:06:24,200 --> 00:06:28,400 Speaker 5: and go down, but when conditions pick up, hospitality is 120 00:06:28,440 --> 00:06:31,479 Speaker 5: also the first industry to recover. We sort of go 121 00:06:31,600 --> 00:06:35,719 Speaker 5: into recessionary times quicker and lower, but we've come out 122 00:06:35,720 --> 00:06:39,400 Speaker 5: of them faster and higher. So it's a very nimble industry. 123 00:06:39,640 --> 00:06:42,400 Speaker 5: And Ram's just pointed out in their last report that 124 00:06:42,480 --> 00:06:47,960 Speaker 5: you know, there is nineteen thousand, five hundred and eighteen 125 00:06:48,000 --> 00:06:51,520 Speaker 5: restaurants still in New Zealand. It's the largest number we've 126 00:06:51,560 --> 00:06:54,440 Speaker 5: ever had in the country. The growth has very flat 127 00:06:54,480 --> 00:06:57,760 Speaker 5: since twenty twenty three, only zero point one percent growth 128 00:06:57,760 --> 00:07:02,080 Speaker 5: and restaurant numbers. But you know, it's not an existential crisis. 129 00:07:02,360 --> 00:07:05,159 Speaker 5: We're not going to certainly run out of restaurants, but 130 00:07:05,360 --> 00:07:08,920 Speaker 5: it is a very real crisis for the people who 131 00:07:08,960 --> 00:07:11,840 Speaker 5: are running these businesses. And there is a risk that, 132 00:07:11,960 --> 00:07:13,760 Speaker 5: you know, if we don't get out and support these 133 00:07:13,800 --> 00:07:18,040 Speaker 5: businesses and think about how we can address the pressures 134 00:07:18,040 --> 00:07:20,840 Speaker 5: that they're facing, that we could lose some more really 135 00:07:20,840 --> 00:07:23,600 Speaker 5: good operators. And it is a loss, it's a social loss. 136 00:07:23,680 --> 00:07:26,240 Speaker 5: We love these places to go out and enjoy the product. 137 00:07:26,680 --> 00:07:28,800 Speaker 5: We have some of the best restaurants in the world. 138 00:07:28,880 --> 00:07:31,800 Speaker 5: You know, we just got eight of our restaurants, including 139 00:07:31,920 --> 00:07:35,840 Speaker 5: the top thousand restaurants in the world by least last 140 00:07:35,920 --> 00:07:38,280 Speaker 5: year in twenty twenty three. We have some of the 141 00:07:38,320 --> 00:07:41,880 Speaker 5: best food, some of the best wine, world class restaurants, 142 00:07:41,920 --> 00:07:44,480 Speaker 5: great places to go, and we just need to be 143 00:07:44,560 --> 00:07:48,640 Speaker 5: careful that, yeah, we don't let these economic conditions damage 144 00:07:48,640 --> 00:07:53,120 Speaker 5: this industry to the point that it could really cost 145 00:07:53,200 --> 00:07:56,480 Speaker 5: us both in terms of tourism and our social enjoyment. 146 00:07:58,480 --> 00:08:01,840 Speaker 8: The Restaurants Associations report into the state of the set 147 00:08:01,880 --> 00:08:04,520 Speaker 8: does show sales are up a five point eight percent 148 00:08:04,600 --> 00:08:08,560 Speaker 8: to nearly sixteen billion dollars. The number of outlet's across 149 00:08:08,560 --> 00:08:11,760 Speaker 8: the country only rose by zero point one percent. That's 150 00:08:11,800 --> 00:08:14,520 Speaker 8: just an extra twenty seven nationwide. 151 00:08:14,760 --> 00:08:17,040 Speaker 5: Definitely going out less, they probably won't splurgs in the 152 00:08:17,080 --> 00:08:19,840 Speaker 5: same wine, or you know, they won't have that extra cocktail. 153 00:08:19,960 --> 00:08:21,960 Speaker 8: Pretty Much every single cost that we would have has 154 00:08:22,000 --> 00:08:24,520 Speaker 8: gone up over the last few years. So whether it's rent, 155 00:08:24,560 --> 00:08:26,840 Speaker 8: whether it's staff, whether it's food, every part of the 156 00:08:26,880 --> 00:08:30,080 Speaker 8: cafe business has gone up. We need to raise I'll 157 00:08:30,120 --> 00:08:31,360 Speaker 8: turn over by about fifty percent. 158 00:08:33,040 --> 00:08:35,360 Speaker 2: We mentioned some of the numbers of restaurants there, David, 159 00:08:35,440 --> 00:08:38,800 Speaker 2: is there perhaps an issue also with us having more 160 00:08:38,880 --> 00:08:41,280 Speaker 2: restaurants than our population can sustain? 161 00:08:41,360 --> 00:08:43,280 Speaker 3: Perhaps, and some of these closures. 162 00:08:42,960 --> 00:08:46,800 Speaker 2: Are just a course correction to a more sustainable hospitality environment. 163 00:08:47,160 --> 00:08:50,200 Speaker 5: There is an argument that I've made around that, saying, yeah, 164 00:08:50,240 --> 00:08:54,400 Speaker 5: that perhaps we don't need I always use the example 165 00:08:54,440 --> 00:08:56,960 Speaker 5: of I walk up High Street and Lawn Street to 166 00:08:57,000 --> 00:09:00,600 Speaker 5: the university here, and I counted one time thirty food 167 00:09:00,600 --> 00:09:03,480 Speaker 5: outlets on those two streets, and I was going, you know, 168 00:09:03,559 --> 00:09:07,320 Speaker 5: if that was halved, would that be a social problem. Obviously, 169 00:09:07,320 --> 00:09:10,119 Speaker 5: it's a problem for the people who run these businesses 170 00:09:10,160 --> 00:09:13,000 Speaker 5: without a doubt, but it could be a correction. We 171 00:09:13,160 --> 00:09:16,960 Speaker 5: could be oversupplied. One of the veteran restauranteurs I was 172 00:09:16,960 --> 00:09:20,440 Speaker 5: talking to recently had just come back from overseas, and 173 00:09:20,600 --> 00:09:23,120 Speaker 5: I myself was lucky enough to get overseas, and we 174 00:09:23,120 --> 00:09:27,440 Speaker 5: were both commenting on the fact that, you know, New York, Milan, London, 175 00:09:27,600 --> 00:09:29,800 Speaker 5: some of these cities that we're lucky enough to visit 176 00:09:30,200 --> 00:09:35,839 Speaker 5: have these huge populations and fantastic infrastructure to support a. 177 00:09:35,840 --> 00:09:38,160 Speaker 6: Really vibrant industry sector. 178 00:09:38,720 --> 00:09:41,680 Speaker 5: And yeah, perhaps in New Zealand we've got too many 179 00:09:41,720 --> 00:09:45,400 Speaker 5: restaurants and not enough people. But I think more importantly, 180 00:09:46,200 --> 00:09:51,559 Speaker 5: we're basically constructed an economy which is proving very difficult 181 00:09:51,600 --> 00:09:56,920 Speaker 5: to support things like hospitality, things like retail, things like 182 00:09:57,000 --> 00:10:00,320 Speaker 5: our arts sector. If people don't have money, you know, 183 00:10:00,440 --> 00:10:02,679 Speaker 5: we've got a real cost of living crisis, and people 184 00:10:02,679 --> 00:10:04,840 Speaker 5: don't feel like they've got money in their back pocket 185 00:10:04,880 --> 00:10:09,080 Speaker 5: to spend, it's very difficult to maintain a vibrant hospitality 186 00:10:09,440 --> 00:10:14,319 Speaker 5: and arts and retail scene. So we need some guidance 187 00:10:14,360 --> 00:10:17,760 Speaker 5: from I think political areas as well to try and 188 00:10:17,760 --> 00:10:20,640 Speaker 5: build an economy that will support these types of industries. 189 00:10:31,480 --> 00:10:33,600 Speaker 3: There's also the going out culture as well. 190 00:10:33,640 --> 00:10:36,959 Speaker 2: Hey, Johannah, do you think COVID and all these lockdowns 191 00:10:36,960 --> 00:10:38,920 Speaker 2: have really changed the way we go out? 192 00:10:39,440 --> 00:10:41,400 Speaker 4: Well, I mean, for me, it's made me go out more. 193 00:10:41,600 --> 00:10:42,840 Speaker 4: You know, I really want to get out there and 194 00:10:42,840 --> 00:10:45,200 Speaker 4: support restaurants, and I really missed not being able to 195 00:10:45,200 --> 00:10:47,400 Speaker 4: dine out when we couldn't. But I do think that 196 00:10:47,440 --> 00:10:49,559 Speaker 4: for a lot of people, they're reserving dining out for 197 00:10:49,600 --> 00:10:52,120 Speaker 4: special occasions, which is fair enough. And we get a 198 00:10:52,160 --> 00:10:55,079 Speaker 4: lot of feedback at Viva Magazine that, you know, people 199 00:10:55,160 --> 00:10:57,040 Speaker 4: really want to know that something's great before they'll go 200 00:10:57,080 --> 00:10:58,800 Speaker 4: out and take a risk. And I think that's where 201 00:10:58,920 --> 00:11:01,440 Speaker 4: sort of our restaurant reviews really come into play there, 202 00:11:01,480 --> 00:11:03,319 Speaker 4: because people can kind of know that they're going to 203 00:11:03,360 --> 00:11:05,160 Speaker 4: have a fantastic time if they're dropping a lot of 204 00:11:05,200 --> 00:11:06,480 Speaker 4: money on a dinner out. 205 00:11:06,880 --> 00:11:09,600 Speaker 2: I'm always checking those reviews, by the way before I 206 00:11:09,679 --> 00:11:12,520 Speaker 2: go out, So I'm definitely one of those people. It's 207 00:11:12,720 --> 00:11:14,239 Speaker 2: not all bad news. 208 00:11:14,000 --> 00:11:14,200 Speaker 3: Is it. 209 00:11:14,200 --> 00:11:17,120 Speaker 2: You've recently, Johannah done a story on some of the 210 00:11:17,160 --> 00:11:19,160 Speaker 2: restaurants that have actually opened this year. 211 00:11:19,400 --> 00:11:21,559 Speaker 4: Well, that's the thing. I mean, I'm actually blown away 212 00:11:21,640 --> 00:11:24,720 Speaker 4: by how many new restaurants open every year and just 213 00:11:24,760 --> 00:11:26,640 Speaker 4: this year there were twenty on my list. So we 214 00:11:26,720 --> 00:11:30,040 Speaker 4: had San Ray on Pontsby Road, which is from the 215 00:11:30,080 --> 00:11:34,160 Speaker 4: team that brought us Kasidor Restaurant. We've got Bodega Delian Bistro, 216 00:11:34,280 --> 00:11:37,160 Speaker 4: which is also on Pontsby Road. There's a new amazing 217 00:11:37,200 --> 00:11:41,079 Speaker 4: little French wine bar in Birkenhead called on Pinard. Maybe 218 00:11:41,080 --> 00:11:43,880 Speaker 4: the most ambitious new opening of the year is Queen's Rooftop, 219 00:11:43,920 --> 00:11:46,000 Speaker 4: which is this amazing rooftop bar on top of one 220 00:11:46,080 --> 00:11:50,080 Speaker 4: Queen Street. And also in that building is Advia restaurant 221 00:11:50,080 --> 00:11:54,080 Speaker 4: from chef Gareth Stewart, which opened in January. There's more. 222 00:11:54,120 --> 00:11:56,360 Speaker 4: There's First Mates, Last Laugh, which is due to the 223 00:11:56,400 --> 00:12:00,760 Speaker 4: Tabron's new glamorous spot in West Haven opening this week 224 00:12:00,760 --> 00:12:03,080 Speaker 4: at the Marriott Hotel. But I think a lot of 225 00:12:03,440 --> 00:12:05,760 Speaker 4: things that these places have in common is that they're 226 00:12:05,800 --> 00:12:09,120 Speaker 4: actually from restaurant tours who maybe already have a restaurant 227 00:12:09,200 --> 00:12:11,000 Speaker 4: or they've got the backing of a hotel, so there's 228 00:12:11,040 --> 00:12:13,439 Speaker 4: a bit more of the knowledge and sort of money 229 00:12:13,480 --> 00:12:15,840 Speaker 4: behind them, which is quite an interesting trend I'm seeing. 230 00:12:16,400 --> 00:12:20,720 Speaker 2: What do you think hospitality needs to adapt and survive 231 00:12:20,880 --> 00:12:21,880 Speaker 2: or is it fine as it is? 232 00:12:22,000 --> 00:12:24,160 Speaker 6: David No, I think yeah. 233 00:12:24,160 --> 00:12:26,720 Speaker 5: From a lot of the conversations I've had with practitioners, 234 00:12:26,760 --> 00:12:30,400 Speaker 5: there's this real feeling that these conditions are driving a 235 00:12:30,520 --> 00:12:34,280 Speaker 5: need for innovation and fundamental change in the way that 236 00:12:34,440 --> 00:12:37,880 Speaker 5: hospitality businesses run. I think you made a great point 237 00:12:37,920 --> 00:12:40,800 Speaker 5: there about the upper end. There are always new restaurants 238 00:12:40,840 --> 00:12:44,680 Speaker 5: coming in and the upper end of the markets doing 239 00:12:44,760 --> 00:12:48,160 Speaker 5: quite well still people going out for special occasions, but 240 00:12:48,240 --> 00:12:52,920 Speaker 5: that kind of middle area every day dining out thinking oh, yeah, 241 00:12:52,960 --> 00:12:54,319 Speaker 5: I don't want to cook tonight, so I think I 242 00:12:54,400 --> 00:12:56,559 Speaker 5: might just go out and have something to eat. That's 243 00:12:56,600 --> 00:12:59,439 Speaker 5: where it's really struggling. And there's been some made changes 244 00:12:59,480 --> 00:13:03,400 Speaker 5: around your people drink. Working from home has affected to 245 00:13:03,520 --> 00:13:08,160 Speaker 5: lunch trade, transport issues. So I think in order to 246 00:13:08,200 --> 00:13:11,640 Speaker 5: be really successful in this type of environment in the future, 247 00:13:11,640 --> 00:13:15,080 Speaker 5: there may be a fundamental need to move more towards 248 00:13:15,120 --> 00:13:21,280 Speaker 5: that casual, reasonably priced, fast turnover dining where perhaps you 249 00:13:21,520 --> 00:13:24,280 Speaker 5: are getting people to come through your place and do 250 00:13:24,480 --> 00:13:27,840 Speaker 5: three or four sittings in a night, moving those tables, 251 00:13:27,880 --> 00:13:31,520 Speaker 5: turning those tables over to really maximize how you're going 252 00:13:31,559 --> 00:13:34,280 Speaker 5: to get your revenue through the door, while the upper 253 00:13:34,400 --> 00:13:38,640 Speaker 5: end can do the formal three hour meal, high cost, 254 00:13:38,840 --> 00:13:43,680 Speaker 5: great reviews, really expensive thing. Well, that middle range I 255 00:13:43,679 --> 00:13:46,319 Speaker 5: think really has to think about moving into that space. 256 00:13:46,600 --> 00:13:49,200 Speaker 6: When I was in Milan, that everyday's space. 257 00:13:49,200 --> 00:13:52,679 Speaker 5: People living in apartments there eat out all the time, 258 00:13:53,120 --> 00:13:54,320 Speaker 5: and they will go and. 259 00:13:54,240 --> 00:13:57,040 Speaker 6: Have a casual meal it's reasonably priced. 260 00:13:56,760 --> 00:13:58,880 Speaker 5: And then leave within an hour, and then next person 261 00:13:58,920 --> 00:14:01,640 Speaker 5: will come in and move on to that table, and 262 00:14:01,679 --> 00:14:04,920 Speaker 5: so wondering whether that will be something that needs to 263 00:14:04,960 --> 00:14:06,120 Speaker 5: be really explored. 264 00:14:06,480 --> 00:14:07,680 Speaker 6: But I think people are. 265 00:14:07,559 --> 00:14:10,840 Speaker 5: Going to have to have really sharp skills in terms 266 00:14:10,840 --> 00:14:13,600 Speaker 5: of pricing and keeping an eye on costs. It's not 267 00:14:13,679 --> 00:14:17,079 Speaker 5: only that costs are going up dramatically, but also they're 268 00:14:17,120 --> 00:14:19,760 Speaker 5: really variable, and so if you don't have a razor 269 00:14:19,800 --> 00:14:24,480 Speaker 5: sharp eye on adjusting your menu pricing as costs move around, 270 00:14:24,680 --> 00:14:27,160 Speaker 5: you can get wiped out really quickly. I think people 271 00:14:27,160 --> 00:14:28,800 Speaker 5: are going to have to be innovative about how they 272 00:14:28,800 --> 00:14:31,880 Speaker 5: think about alcohol sales. Those have gone down a lot. 273 00:14:31,920 --> 00:14:34,560 Speaker 5: People aren't drinking as much as they used to, So 274 00:14:34,600 --> 00:14:37,280 Speaker 5: how do you innovate around that? You know, and as 275 00:14:37,400 --> 00:14:40,160 Speaker 5: Danny Mayro I said that the curse of restaurants is 276 00:14:40,160 --> 00:14:43,680 Speaker 5: it's not one big thing, it's a thousand little things. 277 00:14:44,000 --> 00:14:48,440 Speaker 5: It's like a eight sided Rubik's cube. You're constantly moving 278 00:14:48,480 --> 00:14:50,760 Speaker 5: and trying to adapt to the market and the changes 279 00:14:51,160 --> 00:14:54,920 Speaker 5: going on, and it's very, very tricky. So I have 280 00:14:55,160 --> 00:14:59,160 Speaker 5: absolute faith that the industry is going to innovate, survive, 281 00:14:59,520 --> 00:15:02,720 Speaker 5: and come through really well. Of places go out, new 282 00:15:02,760 --> 00:15:06,240 Speaker 5: places come in. And I guess one really exciting thing 283 00:15:06,800 --> 00:15:09,480 Speaker 5: is that you employment's up seven point three percent in 284 00:15:09,520 --> 00:15:11,880 Speaker 5: the sectors, so those really brutal. 285 00:15:11,720 --> 00:15:13,440 Speaker 6: Staff shortages are starting to. 286 00:15:13,480 --> 00:15:17,600 Speaker 5: Weaken and we're seeing our whole new generation coming in 287 00:15:18,000 --> 00:15:20,800 Speaker 5: to fill those roles, and that will really help with 288 00:15:21,040 --> 00:15:23,720 Speaker 5: consistency and getting on in the future. 289 00:15:25,960 --> 00:15:30,200 Speaker 7: The top challenge currently for our businesses is customer downturn, 290 00:15:30,560 --> 00:15:33,160 Speaker 7: so that sort of a start contrast with last year 291 00:15:33,320 --> 00:15:36,480 Speaker 7: it was rising costs. A recent survey from our members 292 00:15:36,640 --> 00:15:40,160 Speaker 7: around how they're faring in twenty twenty four told us 293 00:15:40,160 --> 00:15:43,440 Speaker 7: that around seventy eight percent of them are worse off 294 00:15:43,440 --> 00:15:46,240 Speaker 7: this year than they were last year, when in twenty 295 00:15:46,280 --> 00:15:48,600 Speaker 7: five things will start to get better. Well, that's another. 296 00:15:48,400 --> 00:15:53,680 Speaker 3: Question, Jehannah, what do you think needs to happen? 297 00:15:53,920 --> 00:15:56,680 Speaker 4: Well, I mean I think that restaurants already are trying 298 00:15:56,720 --> 00:15:58,800 Speaker 4: really hard to adapt. I mean many of them do 299 00:15:58,960 --> 00:16:02,000 Speaker 4: sort of pop ups, labs events, you know, they do 300 00:16:02,120 --> 00:16:04,960 Speaker 4: special menus or set menus. I'm noticing a lot of 301 00:16:04,960 --> 00:16:07,080 Speaker 4: restaurants opening for lunch on the weekend. You know, they're 302 00:16:07,080 --> 00:16:09,920 Speaker 4: really trying to provide something new for their diners, or 303 00:16:09,920 --> 00:16:13,360 Speaker 4: they're totally changing their business model, like for example, Sid 304 00:16:13,400 --> 00:16:16,800 Speaker 4: Satowat earlier this year announced that he was scaling back 305 00:16:16,840 --> 00:16:19,560 Speaker 4: the fine dining restaurants Sit at the French Cafe and 306 00:16:19,600 --> 00:16:21,320 Speaker 4: turning it into a Nie, which is more of a 307 00:16:21,320 --> 00:16:23,800 Speaker 4: modern Pan Asian restaurant where you can drop in for 308 00:16:23,840 --> 00:16:26,160 Speaker 4: a you know, an entrain, a cocktail or have a 309 00:16:26,160 --> 00:16:29,040 Speaker 4: big meal, and then turning Sit at the French Cafe 310 00:16:29,120 --> 00:16:32,280 Speaker 4: into a smaller restaurant and reverting it back to the 311 00:16:32,280 --> 00:16:34,920 Speaker 4: French Cafe. So people are trying to adapt and try 312 00:16:35,000 --> 00:16:37,120 Speaker 4: new things to see what will work. So I think 313 00:16:37,120 --> 00:16:39,520 Speaker 4: we just got to watch the space really and. 314 00:16:39,440 --> 00:16:43,000 Speaker 3: There's real rise. Actually I'll end on this on social media. Hey, 315 00:16:43,080 --> 00:16:43,880 Speaker 3: I'm on TikTok. 316 00:16:43,920 --> 00:16:46,000 Speaker 2: I spend way too much time on tech talk, and 317 00:16:46,080 --> 00:16:48,600 Speaker 2: I know I'm probably too old to be spending. 318 00:16:48,280 --> 00:16:49,520 Speaker 3: So much time on TikTok. 319 00:16:49,720 --> 00:16:53,400 Speaker 2: But I get so many good restaurant recommendations from people 320 00:16:53,640 --> 00:16:55,800 Speaker 2: on tech talk, and I've noticed around the corner from 321 00:16:55,800 --> 00:16:58,440 Speaker 2: my house there's a cafe and I was wondering why 322 00:16:58,480 --> 00:17:02,600 Speaker 2: there were lines outside every Saturday and Sunday, and it's 323 00:17:02,640 --> 00:17:05,560 Speaker 2: because it was on TikTok. David, do you think that 324 00:17:05,560 --> 00:17:08,880 Speaker 2: that's really something quite fun and exciting for the industry? 325 00:17:09,280 --> 00:17:09,920 Speaker 6: Absolutely? 326 00:17:10,040 --> 00:17:12,440 Speaker 5: Yeah. I mean, you know, word of mouth has always 327 00:17:12,480 --> 00:17:17,720 Speaker 5: been the absolute driver of great success in restaurants, and 328 00:17:17,800 --> 00:17:21,040 Speaker 5: the technology that shares that word of mouth will change 329 00:17:21,080 --> 00:17:24,040 Speaker 5: and has changed, but that's really how it's always worked, 330 00:17:24,080 --> 00:17:26,639 Speaker 5: and now it will always work. People sending out the 331 00:17:26,640 --> 00:17:28,679 Speaker 5: word that this place is great, you need to go 332 00:17:28,760 --> 00:17:31,159 Speaker 5: and check it out. And yeah, I mean there's a 333 00:17:31,240 --> 00:17:33,160 Speaker 5: number of places as I walk up the town where 334 00:17:33,200 --> 00:17:36,640 Speaker 5: you see lines. New Zealanders aren't renowned for lining up 335 00:17:36,640 --> 00:17:39,000 Speaker 5: for things, but when you get it right and their 336 00:17:39,040 --> 00:17:42,040 Speaker 5: high quality and their priced right, and they have that 337 00:17:42,359 --> 00:17:45,160 Speaker 5: buzz around them, it's really exciting to see that people 338 00:17:45,240 --> 00:17:46,840 Speaker 5: are willing to line up and wait. 339 00:17:46,680 --> 00:17:48,800 Speaker 6: To get the product. It's super exciting. 340 00:17:49,080 --> 00:17:51,280 Speaker 3: Is that something you've noticed as well, Johannah. 341 00:17:51,000 --> 00:17:53,240 Speaker 4: Yeah, I mean Instagram is definitely a go to for meat, 342 00:17:53,320 --> 00:17:55,639 Speaker 4: for finding out new places to eat and drink, and 343 00:17:55,680 --> 00:17:58,320 Speaker 4: I think it really fills that gap where, you know, 344 00:17:58,400 --> 00:18:00,480 Speaker 4: some of these bigger restaurants are the ones maybe get 345 00:18:00,480 --> 00:18:02,600 Speaker 4: written about in magazines or online, but you know, the 346 00:18:02,600 --> 00:18:04,560 Speaker 4: little cafe or the little hole in the wall or 347 00:18:04,560 --> 00:18:07,520 Speaker 4: the little noodle shop. I think Instagram or TikTok, like 348 00:18:07,560 --> 00:18:09,680 Speaker 4: you say, is a really great place to shine a 349 00:18:09,720 --> 00:18:10,919 Speaker 4: light on those guys. 350 00:18:11,400 --> 00:18:19,960 Speaker 3: Thanks for joining us, guys. That's it for this episode 351 00:18:20,040 --> 00:18:21,200 Speaker 3: of the Front Page. 352 00:18:21,480 --> 00:18:24,600 Speaker 2: You can read more about today's stories and extensive news 353 00:18:24,640 --> 00:18:27,280 Speaker 2: coverage at enzed Herald dot co dot nz. 354 00:18:28,040 --> 00:18:29,680 Speaker 3: The Front Page is produced. 355 00:18:29,280 --> 00:18:32,280 Speaker 2: By Ethan Siles with sound engineer Patty Fox. 356 00:18:32,720 --> 00:18:34,080 Speaker 3: I'm Chelsea Daniels. 357 00:18:34,640 --> 00:18:37,600 Speaker 2: Subscribe to The Front Page on iHeartRadio or wherever you 358 00:18:37,640 --> 00:18:41,000 Speaker 2: get your podcasts, and tune in tomorrow for another look 359 00:18:41,119 --> 00:18:42,280 Speaker 2: behind the headlines.