'Concerning': Hospitality industry in crisis, survey suggests

July 19, 2024
Restaurant

The hospitality industry is in crisis, a new survey suggests, with businesses across the country reporting a decline in revenue, reduced customer numbers, and deteriorating mental health.

According to a recent survey by the Restaurant Association, 78% of businesses in Auckland and 76% across the country said revenue was "significantly worse" than last year.

A drop in patrons has also hit the industry hard, with 58% of Auckland businesses and 52% of businesses nationwide citing customer downturn as their biggest issue.

A large number of those businesses don't see things getting better. According to the survey, 42% of Auckland and 31% of businesses nationwide believed conditions would "deteriorate" over the next year.

The survey also suggested mental health had "worsened" in the industry, with 66% of businesses in Auckland and 54% nationwide saying it has worsened "as a result of these ongoing pressures".

"The recent closures in our industry exemplify the harsh reality many businesses are facing," Restaurant Association CEO Marisa Bidois said.

Last week, it was announced that high-profile Ponsonby Rd restaurant SPQR, which had been operating since 1992, would go into liquidation and close its doors.

“Many of these establishments serve as cornerstones of our community, hosting countless special occasions and launching the careers of many in our industry," Bidois said.

"These closures serve as stark reminders of the challenges currently confronting the hospitality sector."

She put out a plea to restaurant owners, telling them they were "not alone", and asking them to reach out to the association.

"Despite the tough times, there is still optimism among our members. Together, we can navigate these challenging times and look forward to a brighter future."

Bidois also encouraged the public to support local hospitality businesses in "any way they can".

"Whether it's dining out, ordering takeout, or simply stopping by for a coffee — every bit of support helps keep our industry alive.”

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