Wellington's original Kaffee Eis store in Oriental Bay is closing its doors.
This Sunday after 16 and a half years of serving beach goers coffee and gelato, the Kaffee Eis chain will drop its first link for good.
While many would expect the closure to be Covid-19 related, owner KarlTiefenbacher said the rise in minimum wage is the main culprit.
"Costs keep on climbing. If you look at it over the last five years minimum wage has risen from $14.75 to 20 bucks, but I don't believe my staff are any better off.
"The cost of rent and everything else has skyrocketed. We focus on the cost of wages but I think the cost of living is a serious issue and there's not enough effort being put in to address that and hold down prices."
Owner Karl Tiefenbacher said he is closing the Oriental Bay store due to the rise in minimum wage. Photo / Supplied
Tiefenbacher said the planned reopening of the Oriental Bay Rotunda has also meant the store is operating on borrowed time.
"With our business, location is everything. While we've done pretty well out of Oriental, the rotunda is set to have a kiosk which will make our store unviable.
If you're across the road where everyone is and there's an option not to have to cross over to here, I don't think quality would prevail."
An artist's impression of the Oriental Bay Rotunda. Photo / Supplied
Having built up a loyal customer base, he says frequent friendly faces will be the biggest loss.
"It's our first store so there's obviously a bit of sentiment around that.
"We still have customers that have been coming in for the whole 16 and a half years that we've been open, they've been incredibly loyal. That's the saddest part for me, so many loyal customers we won't be able to continue looking after."
ACT Party small business spokesman Chris Baillie said it's a great example of the effects the Government's policies are having on small businesses.
"It doesn't surprise me at all and it makes me really sad. Constantly businesses are being hit with a rise in minimum wage, new holidays, more sick days, and businesses just don't know what to expect next."
Despite Tiefenbacher now operating four other Kaffee Eis stores throughout the capital, he said he only ever intended to have one.
"We were making gelato in the back and it meant producing it on an as-you-go basis, so I was doing 70 hour weeks in 40C heat. I couldn't really get anyone else to work in those types of conditions.
"We set up with a little factory which meant more distribution and a second store.
"Suddenly restaurants started coming to us for gelato and it's just really organically grown ever since."
Tiefenbacher noted, however, the dramatic shift in hospitality work ethic over the 16 and a half years the chain has been operating.
"There's been a change in attitude in terms of more and more entitlement being expected by staff. It makes me nervous saying that because I have so many wonderful workers, but there's definitely been a change in ethic as we've gone along."
Despite Duck Island Ice Cream and Ben and Jerry's both entering the market on Cuba St, he said it only makes for more friendly competition.
"There's more and more competition around but our Cuba St store is having some of its best numbers ever. It's booming. There will always be competition but If you do things well there's always going to be a certain amount of loyalty I think."
