Bay diners spent nearly $800 million at local cafes, restaurants, and bars in the year to September as hospitality revenue bounces back, new data shows. Photo / Getty Images
Thousands more hospitality staff are needed to fill summer jobs as diners spend more, but staffing levels remain the same.
The latest Restaurant Association Hospitality Report revealed the Bay of Plenty’s hospitality sector achieved $798 million of sales in the year ending September 2022. That was an increase of 8.5 per cent - or $62m - from 2021, and higher than the $621m spent in 2020 when the Covid-19 lockdown happened.
But despite increasing spend, the number of employees in the region has stayed at 7900 since 2020. The hospitality industry is predicted to need another 30,000 employees to fill summer jobs nationwide, and local business owners say finding summer staff has been a “struggle”.
The association’s report showed Bay diners spent $184.7m between January and March 2022, 0.9 per cent less than the same period in 2021. They spent $205.1m between April and June, 4.2 per cent more than $196.8m in 2021.
The biggest growth was $210.6m spent between July and September, 31.4 per cent more than $160.3m in 2021.
Restaurant Association chief executive Marisa Bidois said the industry saw a sales increase of 7.7 per cent over the previous year nationally, which was a positive result after a challenging period.
Bidois said the Bay of Plenty was slightly ahead of nationwide sales, posting revenue increases of nearly 9 per cent.
“The rate of growth in hospitality over recent years has been impressive, and until the Covid-19 outbreak, the industry was booming.
“With the return of visitors to our shores and no trading restrictions, we are optimistic about the summer months.”
However, Bidois said it was no secret the largest challenge the industry faced was meeting workforce demands.
“The industry is predicted to need another 30,000 employees to keep up with the pace of growth over the summer period.”
Bidois said despite an increase in the number of outlets in the Bay - 1092 in 2020, 1113 in 2021, and 1173 in 2022 - employee growth numbers for the region had remained static, which was a concern.
“While the association has placed additional focus on the training and development of New Zealanders, with only 3.3 per cent unemployment, it is essential that we can access the talent we need to run our businesses, and in many cases help grow the industry as a whole.”
Owner of But First Dessert in Tauranga Adele De’Arth said 2022 had been full of “ups and downs”.
De’Arth recently celebrated one year since opening her dessert restaurant and bar on Devonport Rd.
“It has been really great meeting all of the people who have become our regulars.”
But, she said, there had been some “major struggles” with roadworks in Tauranga’s CBD, the perception of where the city centre was headed, and the Elizabeth Towers still under construction.
“It definitely hasn’t quite happened how we had hoped.”
It had also been tricky finding staff, she said.
While many people from outside of New Zealand were applying, Kiwis did not seem to want to snap up the jobs, she said.
“For roles we know we are paying decent money for, no one is applying, which is a real shame because hospitality is a great job.
“It is frustrating, especially when you have good staff leaving for good reasons.”
One of her employees was leaving to start her own business, she said.
“I am so happy for her but it is going to be hard to replace her. It could take months. That is terrifying.”
Despite the struggles, De’Arth said she was “super proud” of her team.
“It is tough out there. But to be able to have stayed open and reach our goals and milestones just makes me so proud.”
She said she hoped to see people take the opportunity to dine out this summer and take advantage of no Covid disruptions.
“Thank you to everyone who has shared our sweet dream. You have kept us going.”
Tauranga’s Elizabeth Cafe and Larder co-owner Connie Richards said 2022 had been another “emotional rollercoaster”.
“It was just hard. I felt like everything was against us,” she said. “Covid, staff shortages, the increase in food, just everything. It has been relentless.”
But, she said, she was looking forward to enjoying the busy summer and festive season.
“This is our busiest time of the year. People are getting out and about.”
Richards said, while others were struggling to find staff at this time of year, they had been “extremely lucky” being able to fill their summer job roles with a couple of “loyal” university students who were home for the holidays and looking for work.
She hoped 2023 would bring more hope for the hospitality industry and thanked everyone who had dined out this year.
“You are the reason those of us who have survived, have survived.”
Restaurant Association Rotorua branch president Sharon Wallace said the year had been “up and down” but the hospitality industry was “doing well” at the moment.
Wallace said finding staff was tricky and the industry needed to change the way it operated in terms of offering the right support for employees to retain them long-term.
Looking forward, Wallace was optimistic about the summer season.
“With the number of visitors expected to come to Rotorua over the summer, that is a good indication of good things to come,” she said. “There is light at the end of the tunnel.”