By LIBBY MIDDLEBROOK
New bars and restaurants in central Auckland are as common as cappuccino.
The problem is that they seem to vanish as quickly as the milky froth on top.
A study into Ponsonby, Herne Bay and Devonport bars, cafes and restaurants has found few businesses survive longer than a decade.
Just 21 per cent of the licensed premises trading in 1990 were still dishing out drinks and serving food last year, says researcher and urban geographer Alan Latham.
"It's a nasty, nasty business to get into if you don't know what you're doing," he said. "It takes an enormous wad of money to have any chance of survival."
The Foundation for Science, Research and Technology funded the two-year project, which focused on urban culture development in the three suburbs. Dr Latham found the number of licensed and unlicensed bars, clubs, cafes and restaurants almost doubled from 64 in 1990 to 121 in 1999, 90 of which were licensed.
But only 19 licensed premises, or 21 per cent, survived the decade (trading under the same name) while 26 trading in 1990 closed before the end of the decade.
Not surprisingly, restaurant expert Jonny Cortizo said increased competition was responsible for the casualty rate, following freer liquor licensing laws in 1989.
The study found the median ownership across the 1990s for defunct businesses was just 20 months.
Earlier this year, Devonport, Ponsonby and Herne Bay sat behind the Viaduct Basin like frumpy bridesmaids as new eateries and bars swiped almost 40 per cent of their business.
Mr Cortizo believed stricter drink-driving laws had also deterred suburbanites from travelling into central Auckland, meaning a big loss in turnover for eateries and bars. People preferred to eat closer to home.
While new entrants frequently failed, Mr Cortizo said pricey fine dining restaurants had been the big losers over the past decade.
Consumer attention had shifted towards a new community of casual eateries, featuring a combination of bar and restaurant.
"The fine dining European restaurants have definitely suffered, so many people are using ethnic restaurants now, too."
Asian eateries have been sprouting up everywhere, offering consumers cheaper food and the option of BYO. Mr Cortizo said they generally had lower running costs, including cheaper ingredients and cutlery.
The general manager of Ponsonby Rd's Prego, Krishna Botica, said cheaper running costs ensured the survival of many ethnic restaurants in areas like Ponsonby, where annual leases could cost around $160,000.
A Ponsonby Rd veteran, Prego was set up in 1986, carving a niche market out of the film and television community.
Ms Botica said the Italian-style restaurant, which had changed ownership once in the past 14 years, developed a loyal customer base, producing "consistent, well-prepared food."
Herne Bay's Vinnies, another 1990s survivor, said the fine dining restaurant was successful thanks to its loyal customer base. Keeping ahead of the latest food trends and "constantly" reviewing its operation ensured repeat business.
The general manager of Ponsonby Rd's Tuatara, Marco Alkousch, said large restaurants needed to generate turnover of at least $1.5 million to stay afloat. He believed many new market entrants did not have the cash or the commitment to survive long-term.
Meanwhile, Mr Cortizo said consumers' wallets were fatter, thanks to the competitive nature of the industry. "Restaurants are terrified to put up their prices."
Survival is tough on the restaurant trail
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