Owner Bianca Nieuwboer told the Rotorua Daily Post the cafe had been part of the city for six years and closing was one of the hardest decisions she had made.
“It wasn’t one single thing that caused it; it was the cumulative effect of rising costs across every part of the business while customers themselves are also under financial pressure.”
According to Stats NZ, food prices increased 4.5% in the year to February 2026, after a 4.2% increase in the year to January 2026.
“We reached a point where continuing simply wasn’t sustainable,” Nieuwboer said.
She said pressure had been building for the past couple of years, but particularly over the last 12 months and the cafe “ran out of options”.
“We’ve done everything we could to adapt, reviewing menus, reducing costs where possible, and working longer hours.
“But there comes a point where you can’t cut your way to profitability and you can’t keep passing the costs on to customers; next minute you’re paying $35 for an eggs benedict.”
Stats NZ data showed restaurant meals and ready-to-eat food prices rose 0.3% in February 2026 compared with January.
Nieuwboer said she never wanted to price the cafe beyond what local families could afford, so “absorbed as much as we could for as long as we could”.
Hello Stranger Cafe closed on August 3 after operating for six years. Photo / Megan Wilson
“Sometimes, despite doing all of those things, the financial reality simply becomes impossible to overcome.”
She said the cafe was “not alone” and knew others were facing the same challenges.
“Hospitality has always been a tough industry. It’s a labour of love, but the last few years have been particularly difficult for independent businesses.”
Ambrosia Restaurant and Bar announced on July 29 it had ceased trading after 17 years in business.
In a social media post, Ambrosia announced the restaurant would not “live to see another day”.
“The lights are out, the taps are dry, the tequila has fallen,” and it had “officially shuffled off this commercial mortal coil”, the post read.
The restaurant thanked customers, staff, supporters and the wider community for their support, saying they had “made the ride unforgettable”.
Ambrosia Restaurant and Bar announced on July 29 it had ceased trading after 17 years in business. Photo / Megan Wilson
Piccalo Cafe announced its closure on August 3.
A Facebook post said its “final coffee” had been poured after years serving customers at the Government Gardens.
“Over the past few years the challenges have become greater than ever,” the post read.
“Rising food costs, increasing wages, utilities, and the many behind-the-scenes expenses have made it incredibly difficult for independent cafes like ours to keep going.”
The post thanked the community for its support and acknowledged pressures facing customers and businesses.
“We also understand that with the cost of living continuing to rise, eating out has become a luxury for many, so every visit truly made a difference.”
Ambrosia and Piccalo’s owners were approached for comment.
Hospitality NZ’s Bay of Plenty branch president and Hennessy’s Irish Bar owner Reg Hennessy said it was always disappointing to see local hospitality businesses close.
“You do feel sorry for the people in businesses because they invest a lot of their lives into it.”
He said businesses had to be willing to make adjustments where needed.
“You’ve got to be fairly good at what you do to run a business in hospitality these days, and you’ve got to know and understand what you’re doing.
Hospitality NZ’s Bay of Plenty branch president and Hennessy’s Irish Bar owner Reg Hennessy. Photo / Kelly Makiha
“What we did last week isn’t necessarily what we’re going to do next week, so you have to be very confident in the product you put out.”
Despite the closures, Hennessy said he was looking forward to a “long and busy” summer with tourists returning to Rotorua.
Rotorua Business Chamber chief executive Melanie Short said the chamber was “saddened” to hear of the closures.
“The loss of three hospitality businesses within a matter of days is confronting for our community and reflects the ongoing challenges facing the sector.”
Short said businesses continued to “grapple” with rising operating costs and reduced consumer spending.
She said the closures indicated trading conditions remained difficult across many sectors.
“We know local businesses are working tirelessly to adapt and remain resilient, but as these recent closures demonstrate, some are simply unable to withstand the ongoing challenges.”
Kaitlyn Morrell is a journalist for the Bay of Plenty Times and Rotorua Daily Post. She has lived in the region for several years and studied journalism at Massey University.