Northland hospitality sector set to bounce back after ‘tough’ few years

Restaurateur Lloyd Rooney is optimistic about the upcoming summer. Photo / Michael Cunningham

Northland’s hospitality industry may have recorded the worst second-quarter result of all New Zealand, but the region’s restaurateurs are confident this will be the summer they’ve been waiting for.

New figures from the Restaurant Association of New Zealand highlighting regional performance show Northland had a dismal second quarter this year compared with the rest of New Zealand.

The data, collected by Stats NZ, shows Northland had only 0.7 per cent growth in sales, with a 5.1 per cent decline compared with the previous quarter.

That’s compared with the total New Zealand growth rate of 9.8 per cent in the second quarter, with a slight 0.3 per cent increase compared with the previous quarter.

It’s also in stark comparison to other tourist areas, which experienced substantial sales growth, such as Kaikōura (37 per cent), Queenstown (30 per cent) and the West Coast (22 per cent).

Restaurant Association chief executive Marisa Bidois said the recovery of the hospitality industry was still “facing challenges”.

Adverse weather had “significantly affected” revenue this year, which compounded longer-term difficulties such as worker shortages and changes in worker visa accreditation requirements, which “must be addressed”.

Bidois said it had been particularly “tough” for Northland businesses, due to repeated state highway and local road closures caused by severe storms, along with a slow recovery from Covid-19.

“While it’s been slower for Northland, that revival will come, and people have high expectations for the summer,” she said.

“There’s optimism, which is great to see in the businesses.

“Obviously, it’s been a tough few years for businesses in general, but overall they are feeling like this summer should be a good trading period.”

Restaurateur Lloyd Rooney said The Quay wasn’t too affected by the bad weather earlier this year, but his other restaurants The Cove and The Dune, which relied on holidaymakers, were "impacted significantly".

Restaurateur Lloyd Rooney said he had seen “a lot of variation” across his Northland restaurants, which include The Quay and No 8 at the Town Basin in Whangārei, The Cove in Waipū and The Dune in Mangawhai.

While The Quay wasn’t too affected by the bad weather that ripped through Northland earlier this year, The Cove and The Dune, which relied heavily on holidaymakers, were “impacted significantly”.

“When we have a big storm come through, we have the ‘storm-is-coming mode’, where everyone goes into hibernation.

“Then you get the storm and everyone ducks further for cover, then there’s the aftermath.

“Every time we get a weather event the impact on business is two or three weeks of lost trade.

“There’s a mentality around the weather event, they [customers] go into survival mode, it really affects those businesses, particularly those relying on good weather.”

Rooney said there was “no question” it had been a challenging time for the hospitality sector this year, which was also affected by a slowdown in the economy.

He ensured his staff understood customers were spending their hard-earned money when they choose to eat out and “it’s our job to give them a good time, and the best service and food”.

Restaurant Association chief executive Marisa Bidois said adverse weather had “significantly affected” hospitality business revenue this year.

“People are crying out for some lovely weather and to get out and enjoy themselves. If the weather is good, I’m optimistic.

“But we also need people with income in their pockets. The two need to collide.”

Atrocious weather has lashed Northland numerous times this year.

Apart from Cyclone Gabrielle, which closed SH1 at the Brynderwyns, either partially or fully, for nearly three months, wild weather hammered Mangawhai, bringing slips, flooding and more road closures.

The summer of storms followed staff shortages caused by Covid-19 restrictions and immigration policies.

Duke of Marlborough part-owner Riki Kinnaird said the industry still had challenges but things were getting back on track.

Duke of Marlborough part-owner Riki Kinnaird said the industry still had challenges but things were getting back on track.

“No one could have predicted the impact [of the pandemic] on tourism and hospitality. You’ve got to make it up as you go.

“It wasn’t that long ago we got out of vaccinations and lockdowns.

“It’s comforting we’re seeing normal winter trade.”

Kinnaird, who also co-owns Charlotte’s Kitchen in Paihia, said he was confident “this will be a good, normal summer”.

“It feels like we’re getting back to a normal curve and cycle.

“For the first time in 3½ years, we can plan, which is a big deal.”

Bidois said business owners continued to be concerned about future conditions.

Employers wanted to see more done to tackle inflationary pressures. While menu pricing had increased, businesses’ rising costs were a result of increased labour costs and a 12.5 per cent surge in food prices during the 12 months to June.

Bidois urged the new National government to “collaborate in building a focused pathway for revitalising and positioning the hospitality sector for the future”.

Jenny Ling is a news reporter and features writer for the Northern Advocate. She has a special interest in covering health, food, lifestyle, business and animal welfare issues.