\u201cWe\u2019ve done everything we could to adapt, reviewing menus, reducing costs where possible, and working longer hours.<\/p>\n
\u201cBut there comes a point where you can\u2019t cut your way to profitability and you can\u2019t keep passing the costs on to customers; next minute you\u2019re paying $35 for an eggs benedict.\u201d<\/p>\n
Stats NZ data showed restaurant meals and ready-to-eat food prices rose 0.3% in February 2026 compared with January.<\/p>\n
Nieuwboer said she never wanted to price the cafe beyond what local families could afford, so \u201cabsorbed as much as we could for as long as we could\u201d.<\/p>\n
Hello Stranger Cafe closed on August 3 after operating for six years. Photo \/ Megan Wilson<\/p>\n
\u201cSometimes, despite doing all of those things, the financial reality simply becomes impossible to overcome.\u201d<\/p>\n
She said the cafe was \u201cnot alone\u201d and knew others were facing the same challenges.<\/p>\n
\u201cHospitality has always been a tough industry. It\u2019s a labour of love, but the last few years have been particularly difficult for independent businesses.\u201d<\/p>\n
Ambrosia Restaurant and Bar announced on July 29 it had ceased trading after 17 years in business.<\/p>\n
In a social media post, Ambrosia announced the restaurant would not \u201clive to see another day\u201d.<\/p>\n
\u201cThe lights are out, the taps are dry, the tequila has fallen,\u201d and it had \u201cofficially shuffled off this commercial mortal coil\u201d, the post read.<\/p>\n
The restaurant thanked customers, staff, supporters and the wider community for their support, saying they had \u201cmade the ride unforgettable\u201d.<\/p>\n
Ambrosia Restaurant and Bar announced on July 29 it had ceased trading after 17 years in business. Photo \/ Megan Wilson<\/p>\n
Piccalo Cafe announced its closure on August 3.<\/p>\n
A Facebook post said its \u201cfinal coffee\u201d had been poured after years serving customers at the Government Gardens.<\/p>\n
\u201cOver the past few years the challenges have become greater than ever,\u201d the post read.<\/p>\n
\u201cRising 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.\u201d<\/p>\n
The post thanked the community for its support and acknowledged pressures facing customers and businesses.<\/p>\n
\u201cWe 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.\u201d<\/p>\n
Ambrosia and Piccalo\u2019s owners were approached for comment. <\/p>\n
Hospitality NZ\u2019s Bay of Plenty branch president and Hennessy\u2019s Irish Bar owner Reg Hennessy<\/a> said it was always disappointing to see local hospitality businesses close.<\/p>\n \u201cYou do feel sorry for the people in businesses because they invest a lot of their lives into it.\u201d<\/p>\n He said businesses had to be willing to make adjustments where needed.<\/p>\n \u201cYou\u2019ve got to be fairly good at what you do to run a business in hospitality these days, and you\u2019ve got to know and understand what you\u2019re doing.<\/p>\n \u201cWhat we did last week isn\u2019t necessarily what we\u2019re going to do next week, so you have to be very confident in the product you put out.\u201d<\/p>\n Despite the closures, Hennessy said he was looking forward to a \u201clong and busy\u201d summer with tourists returning to Rotorua.<\/p>\nHospitality NZ\u2019s Bay of Plenty branch president and Hennessy\u2019s Irish Bar owner Reg Hennessy. Photo \/ Kelly Makiha<\/p>\n