Working from home impacting Tauranga’s local businesses

The Government’s push to get more workers back into their offices will help struggling city centre businesses, a hospitality business owner says.

But Tauranga City Council says allowing flexible working practices keeps costs down for ratepayers.

Public Service Minister Nicola Willis has announced that she wants to see more public servants coming into their workplaces.

“It allows for face-to-face conversation, the sharing of skills and experience and relationship building,” Willis said in a statement.

Elizabeth Cafe and Larder co-owner Connie Richards said workers in her building are encouraged to come to work in the office. Photo / Mead Norton

“If the pendulum swings too far in favour of working from home, there are downsides for employers and employees.

“That’s even before we consider the effects for the CBD retailers, restaurants and cafes.”

Tauranga City Council general manager of corporate services Alastair McNeil said the council supported a mix of on-site and remote work depending on practical realities.

“The number of staff working from home varies day-to-day.

“Our flexible work practices reflect the varied roles we have here at the council and the services and outcomes we deliver for our community.

“Flexible working is also an important element of our commitment to keeping costs down for ratepayers,” McNeil said.

Tauranga City Centre. Photo / George Novak

Some Tauranga businesses were experiencing repercussions from working from home becoming normalised.

Crown and Badger pub owner Jessica Rafferty said city workers drove most of the hospitality trade.

“Tauranga’s CBD, hospitality in particular, struggles due to a range of factors, but working from home is definitely one aspect.”

Friday lunch periods at the Crown and Badger used to be busy enough that Rafferty would put extra staff on.

“Now that people are working from home on Fridays, you don’t get that weekend buzz that you used to get.

“The trade is not there to support the staff we have on-site.”

She said the more people that were in the city centre, the better.

Crown and Badger owner Jessica Rafferty pictured in 2019. Photo / George Novak

“Tauranga needs more people working and living in town. More feet on the pavement is always going to help business,” said Rafferty.

Connie Richards, who co-owns Elizabeth Cafe and Larder, said a large influx of her business came from workers in nearby areas.

The cafe drew its customers from the office workers within the building, other nearby CBD workers and the public.

“Predominantly it’s from the people above us, we do get a few from other businesses but the majority would be from upstairs.

“I feel like, especially in our building, they’re encouraged to come to work at the offices.

“If there are people, then there’s foot traffic and more things are happening, the town looks busy so more people are likely to come over,” Richards said.

Rohit Bhardwha, restaurant manager at Grindz Cafe, said he believed fewer workers from surrounding office buildings were frequenting cafes.

“If people are working from home, they won’t be coming into the cafe.

“You lose your regular guests, you don’t see them for a while because they’ve started working from home,” Bhardwha said.

He said he thought the Government’s push to get more workers back into their offices would be good for everyone.

“It would be good for business and good for the people who are used to working from home, they need to get a little fresh air.”

Matt Cowley, chief executive of Tauranga Business Chamber, said hybrid working differed from a flexible working arrangement.

Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / George Novak

“It’s occasional, rather than seen as an entitlement,” said Cowley.

He said the Government’s direction was a positive move for city centre business, while also ensuring working from home was on an exceptional basis.

“This will help public agencies be more effective, and build stronger team cultures.”

The Government has asked the Public Service Commissioner to communicate working-from-home expectations to public service chief executives and has issued revised guidance about working-from-home arrangements.