Russell Gray: Hospitality world class in NZ

By Russell Gray

NZ Herald·

16 Feb, 2018 09:00 PM5 mins to read

New Zealand's hospitality sector is in good shape says Hospitality NZ Auckland president Russel Gray. Photo/123RF

Every time I go overseas, and I travel regularly to look at new trends in hospitality and food and beverage, I come back really heartened and convinced again that what we do here in New Zealand is world class.

Tourism is booming and Auckland has positioned itself as a burgeoning international city with an amazing food and beverage offering.

We are blessed with a large number of restaurants in New Zealand, especially in Auckland.

Hospitality here is a thriving industry and the market will determine the rate of growth of our restaurants and bars.

The reality is that those who don't have robust systems and plans in place will struggle and fall by the wayside.

But the good operators with forward planning and solid foundations will flourish.

Our night-time economy alone in Auckland is worth $6 billion per annum.

So we, as hospitality leaders, need to work hard in ensuring that this is being protected -
and it's not always easy to predict what will happen next.

There's nothing more permanent than change, as demonstrated by the surprise final election result.

We have to be concerned with respect to the potential of rising costs of business with changes to the employment laws and wage rates.

Hospitality NZ Auckland president Russell Gray. Photo/Norrie Montgomery.

As well as changes to the immigration laws, because the latter is vital to hospitality.

So we need to do the best we can with the cards we've been dealt and ensure we do not look backwards in the rear vision mirror.

We need to focus positively and proactively on the future and continue to grow a vibrant hospitality scene in Auckland – that will be the envy of many other cities.

Destination Management

Whilst New Zealand is great at destination marketing, we are not as good at destination management.

One of our biggest international cruise ships docked in port on Christmas Day, but nothing was open in Auckland so tourists were stuck with nothing to do in our great city.

How much tourism spend are we missing out on? Why the disconnect?

You've got to better understand what to do with the people once they arrive here.

Our goal should be to exceed the needs and wants of all the people journeying into New Zealand.

Let's agree on an overall value proposition that focuses on these tourists.

We need to work well and proactively with local agencies to ensure that we participate in the management of the growing tourist market and stay in tune, and well connected.

America's Cup – Catalyst for change

The America's Cup provides a stunning opportunity to ensure maximum leverage is achieved and a real step-change made and legacy created.

Think of waterfront redevelopment incorporating America's Cup syndicates moored alongside a multi-event multi-purpose international stadium.

And if you think back to the development of the Viaduct around previous America's Cup wins, it's a good reminder that anything is possible.

If you want to leave a legacy you need to create a vision.

Hospitality needs to join forces and be part of driving the change – to ensure this legacy.

We've got this huge opportunity with economic development, we need to grasp it with open arms.

Local government, central government, sponsors, corporates, businesses, individuals alike, need to come together to facilitate this change.

I was involved in the early stages of the new stadium in Dunedin in 2005 to 2007, and everybody said it couldn't happen, that the city couldn't afford it.

But they are all enjoying the benefits that have ensued since.

Forsyth Barr Stadium is now home to international concerts and sporting events in Dunedin, creating tourism, jobs and opportunities that would not have otherwise emerged.

Emirates Team New Zealand training. Photo/ACEA 2017/photo.americascup.com

Disruption and Technological Change

We have certainly seen a lot of disruption to many industries lately, including the Auckland restaurant scene.

It's a highly competitive industry, and we are not immune to disruption, so it's about embracing new technology and different ways of doing things.

All it takes is a company like Uber Eats to emerge, and boom, we are all changing the way we run our businesses.

As restaurant owners we are under scrutiny like never before through social media and reviews. Nowadays every customer has become a food critic.

We are relying less and less on traditional food media reviewers and more so on our customers' reviews/experiences on dining through social media.

And every day we are reacting and continuously improving due to the growing needs and demands of a consumer who has become very savvy.

And online bookings have presented a massive shift in the way we interact with customers.

Auckland's Viaduct Harbour. Photo/Doug Sherring

Compliance – Ensuring The Show Never Stops

If we have a look at what's happening in Sydney, they changed their lockout and licensing laws and despite being warned of the dramatic negative impact – they did it anyway.

And now they are regretting it.

The Sydney City Mayor, Clover Moore, is working through the major negative effect it's had on Sydney as an international city.

This can massively affect the economy, growth in jobs, GDP and international reputation.

So we are delighted that our hospitality sector support of Auckland Council's Local Alcohol Policy was successful in ensuring that the appeal from police and health authorities did not succeed, and a positive, sensible outcome prevailed.

What is probably not known is the amount of money it takes to fight something like that.

Money that hospitality businesses have to personally contribute.

As I look forward I can see a time where we are over the plethora of CBD construction and roading disruption.

We are building positively towards our America's Cup defence and enjoying world class waterfront facilities with world class hospitality.