Owner of the Funky Duck Cafe Dave Hill said increased costs across the board alongside very low numbers of customers has them in a tough spot. Photo / Bevan Conley
Owner of the Funky Duck Cafe Dave Hill said increased costs across the board alongside very low numbers of customers has them in a tough spot. Photo / Bevan Conley
Hospitality businesses across the Whanganui district are noticing a significant drop-off in customers since moving into the red light setting.
And with Omicron expected to continue its spread after a record 446 community cases were announced by the Ministry of Health yesterday, , the future looks gloomy for hospitality businessesin Whanganui.
Funky Duck Cafe owner Dave Hill said his business was down about 40 per cent since moving into the red setting, with the future not looking much better.
He referenced the lack of tourists, inflationary pressures giving locals less money to spend as well as the move to red all adding up to the downturn in profit.
The idea of closing for up to 10 days if a staff member tested positive was a harrowing one for Hill, saying closing the doors for good would not be off the cards.
"The red light has definitely put fear into people. I think the Government has made a huge blunder by moving to red light."
He discredited claims from modellers that New Zealand could be facing thousands of daily Omicron infections by Waitangi weekend.
"We are down in the low hundreds. It has put a lot of fear into people. It is very contagious, but we have high vaccination rates and I think the Government has gone way over the top."
He said all of his suppliers had increased their costs by at least 10 per cent, and the Whanganui District Council had also upped its rates and rent.
Kirsty Hill, from The Mothered Goose in Bulls, said they've seen a significant decline in customer numbers all summer.
Being right at the connection of State Highway 1 and 3, Hill said the majority of their customers were travellers passing through.
They had noticed a lot fewer people travelling this summer.
"Over Christmas, we did get a bit of a pick-up, but not to the extent that it normally would be.
"I think it is a mixture of things. I think there are less people actually going out and about. Two, being where we are, we normally get international travellers and constant traffic from the commercial side and that has just disappeared. That is a big chunk of our business."
Hill said they were in the midst of an ownership takeover, with the current Covid landscape only adding additional pressure.
"We currently have five staff. If someone was to test positive, it would affect our entire business because four of us work every day."
Chief executive of the Whanganui Chamber of Commerce Helen Garner said locally owned retail and hospitality businesses are in dire need of support right now as customer numbers have declined significantly in recent weeks.
Whanganui Chamber of Commerce chief executive Helen Garner said small businesses are hurting and are in dire need of support. Photo / Bevan Conley
"The reality is we are not going to places where people congregate as we hurry up and wait for the much-touted Omicron pandemic to sweep through our region. Our small business owners are hurting and it's not their fault.
"These are good operators who have done everything right, been resilient, pivoted their businesses, stood by their staff – all the things we have expected them to do. After two years of doing all that, they are now faced with the prospect of having failing businesses."
With winter approaching, traditionally a quieter time of the year for local retail and hospitality businesses, Garner said she was increasingly worried for some of their members and their livelihoods.
"We need the Government to step up now and provide support and a change in policy settings to help our regional hospitality industry make it through the next six to eight months.
"We can all do our bit to help, and we implore our community to support local wherever they can."
Springvale Cafe owner Lyn Crawford said life had been quieter since moving into red.
"It has been a lot slower, there has definitely been a drop-off in business under the red light. Times are really tough at the moment."
She said it hurts having to pay someone to be at the door solely checking vaccine passes, but their customers certainly appreciated the measures they have in place.
"We look at a lot of other businesses that aren't doing it. There are a lot of food places that aren't doing it properly and I find that difficult to stomach. We are confident we are doing it properly."
Lyn Crawford, owner of the Springvale Cafe, would like to see more financial support for hospitality businesses. Photo / Bevan Conley
Crawford has tried to figure out ways of splitting the staff into teams in an effort to avoid closing if a staff member was to test positive.
"It's not possible. We are seven days a week, and too many staff we can't split into two teams. There's too much of a crossover."
According to the Ministry of Health website, a decision regarding a store or site closure should be made on the advice of a public health official based on information including the extent of the exposure, the type of service you provide and how many staff members are affected.
The idea of closing due to a positive case is "really concerning", said Crawford.
"It's basically like having another lockdown. It will happen quick and we will have all our food wasted. To be honest, every time we have gone into lockdown we have had a $20,000 loss from food. The bigger you are, the harder you fall.
"It would just represent another lockdown to us. It is a real concern for us and we are trying to put procedures in place. We are sitting here thinking it will happen and there isn't a lot we can do about it."
While there are subsidies to ensure staff continue to be paid if the business did have to close due to a positive Covid case, Crawford said it isn't enough.
She would like to see additional financial support given to hospitality businesses.
"There is no other help. I think there should be more support. We have 195 seats usually and we are only allowed 100 people under red, that's half our turnover. That is a huge hit to take each time."
