Hammerheads restaurant, which occupies a prime spot in Auckland's Okahu Bay, has gone into liquidation. Photo / Janna Dixon
Hammerheads restaurant, which occupies a prime spot in Auckland's Okahu Bay, has gone into liquidation. Photo / Janna Dixon
Auckland may be gaining a reputation as a place where the food matches the attractiveness of the location but making a seafood restaurant work on the waterfront still seems to be a struggle.
Confirmation this week that Tamaki Drive landmark Hammerheads is beyond salvage comes barely a year after another waterfront institution, Kermadec, went under.
Both specialised in seafood, both were long-established in the famously difficult upmarket dining sector - Kermadec lasting 20 years and Hammerheads 25.
Both made the most of spectacular settings: Kermadec overlooking the Viaduct basin and Hammerheads enjoying sweeping views - the setting sun a great place to contemplate the moored boats of Okahu Bay, the sparkling Waitemata Harbour and the city skyline.
Visitors have long wondered why a city with such natural assets is not awash in waterfront joints serving up freshly-caught morsels from the Hauraki Gulf: Hammerheads' demise leaves just a handful, despite the rising tide of eating-out newcomers.
Hammerheads went into liquidation last month after Inland Revenue moved against it, after its long-term owners had failed to find a buyer. Liquidator Craig Sanson of PWC is not yet able to say how much is owed.
Closure of the heritage-listed venue with its signature arched windows raised not a ripple of nostalgia in the social media. While the menu and prices aimed high, its heyday as a destination for local movers and shakers was the late-90s. Since then, competition has surged and trends have changed.
Owners Paula Sheahan, Doug Neesham and Janine Baker tried long and hard, employing name chefs and front-of-house staff over the years. The venue's Facebook page suggests it retained many seafood devotees. Able to seat 180 indoors, it did weddings and functions - but size may have proved as much a curse as a blessing, industry players suggest.
Over time, reviews drifted towards the "food failed to match the majesty of the view" variety. A fire in 2011 led to a refurbishment and critics were highly impressed upon its re-opening. But, subsequently, both food and service standards were found wanting at times.
I don't think [Hammerheads] did anything wrong; they were probably just a victim of being a standalone operation."
Though fine-dining remained the focus, they introduced quick lunches and a bar menu. It was always a mystery why weekend traffic would queue on Tamaki Drive for the Mission Bay cafe strip (from where views of the harbour are obscured) while Hammerheads' deck had seats to spare.
But industry players believe a range of challenges slowly overwhelmed the venue.
Restaurant Association Auckland branch president Krishna Botica says while the waterfront is unbeatable when its warm and sunny, Auckland is often windy and wet - "and when it's cold and raining people will go local". And big venues can't vary staff levels according to the weather - "HR costs can make it a difficult game for these larger premises."
Seafood is seasonal and pricey, and margins can be thin, adds Botica of Prego and Cafe Hanoi fame.
"Seafood is hard to get right. You can throw your heart and soul into a place and there are no guarantees."
Hospitality NZ Auckland President Kevin Schwass reckons the development of eating and drinking precincts didn't help. "People now don't say they're going to a particular restaurant but to a particular area like Ponsonby or the Viaduct," Schwass says. "They'll have a drink in one place and go and eat somewhere else."
Some new precincts such as Wynyard Quarter and Federal St have benefited from "supportive" landlords while breweries are bankrolling several new entrants.
"Aucklanders and New Zealanders don't realise how blessed they are with good restaurants now," Schwass says.
"I don't think [Hammerheads] did anything wrong; they were probably just a victim of being a standalone operation."
