“So maybe the 4.6% doesn’t feel as strong for some businesses … it really is looking at sales growth, it’s not highlighting profitability.
“Even where sales have gone up, costs have as well, so it hasn’t really translated yet into better times.
“But it is showing some momentum, and hopefully we’ll be gaining more as the year goes on.”
Asher Danim, who runs Cafe Jerusalem in Kerikeri with his wife Victoria Denari, said the restaurant was “still surviving”, though times were tough.
“One hundred per cent we are making less money because of all the rising costs,” Danim said.
“What’s left, you pay the staff.
“We didn’t put the prices up, so you make less money, but it’s going okay.
“It’s still going up and down; some weeks are better than others.”
Duke of Marlborough part-owner Riki Kinnaird said times had been “really tough” for a while.
He said while the Christmas and New Year period had been good, with events, functions and international spending, domestic spending had been in decline for the past nine months.
“In winter when there’s no international visitors and fewer events, you can really see that trend continue.
“What we’re seeing now at a normal time of the year when New Zealand is 100% of our income, they’re not spending as much and that’s been going on a while.
“There’s genuine nervousness about the [Middle East] war, people are not as confident, and that reduces the spend.”
Kinnaird said winter was usually quiet but this one seemed worse than normal.
He was looking forward to October, when functions and weddings kicked off, along with the return of international visitors.
“Kiwis believe we’re in a funk.
“There are some industries doing well, like farmers, but your average Kiwi is worried and not spending as much.
“But the Rumble in Russell was amazing; the whole town was full of fun and laughter and people, which shows when there’s an event to focus on, people will spend.”
Duke of Marlborough part-owner Riki Kinnaird says times are “really tough” but October will bring more bookings and international visitors. Photo / Peter de Graaf
The Rumble in Russell is a biennial charity sports event between politicians and local players that raises funds for the Rugby For Life Charitable Trust.
The hospitality industry has faced numerous challenges since the start of the Covid-19 pandemic, including lockdowns, slow-to-open borders and declining domestic spend.
Paired with rising costs for energy, food and insurance, businesses within the sector are facing extra pressure.
That prompted Auckland restaurateur Sean Yarbrough, founder of Broke Boy Taco, to issue an emotional plea for support, saying soaring food costs had left small business owners with little choice but to raise prices.
“There’s never been a worse time to own a restaurant in history than now,” Yarbrough told his 125,000 Instagram followers recently.
“I know some of y’all are p***ed off at me for raising the prices, but I don’t have a choice.”
Waldren said Restaurant Association members wanted “stability” and called on whoever wins the election this year to listen to the hospitality industry.
“The hospitality industry is made up of thousands of small business owners who operate on tiny margins,” she said.
“When costs jump dramatically, there’s nowhere they can absorb them.”
Jenny Ling is a senior journalist at the Northern Advocate. She has a special interest in covering human interest stories, along with finance, roading, and social issues.