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Home / New Zealand

Calling Time: Pubs struggling

By by staff reporters
Wairarapa Times-Age·
8 Nov, 2010 03:00 AM5 mins to read

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Country publicans across Wairarapa say keeping taps flowing is getting harder in the face of deepening recession and growing competition.
Tinui Hotel publican Bruce Andrews describes running a country pub as "impossible".
The Tinui Hotel has been on the market for eight years and in 2008 the owners sold the original hotel building.
Mr Andrews said legal changes, such as Sunday trading and supermarket liquor sales, had created more competition for sole operators, and social changes had had an impact too.
"People are more mobile. Farmers are in town three or four times a week and you've got partners in town.
"There's no need for a local outlet."
Mr Andrews said many country pubs were becoming "venues for townies rather than the locals" and some that called themselves country were in town.
Just a few kilometres away, towards Castlepoint, the Marine Hotel at Whakataki is also on the market, and has been so for three years.
Eketahuna has one pub under management changes and another on the market.
Hotel Eketahuna has recently had a manager leave and has been stripped of signage as part of a Tui rebranding.
Hours have been cut, with the hotel temporarily opening at 4pm.
New signs are expected over the next few days.
Dave Pym, who owns the buildings and land, said the pub had been through a management change and things had been "very quiet". He was running the pub in conjunction with business owner Ash Miller.
Colin Gillott, owner of the Eketahuna Commercial Hotel, said he had been running pubs for 27 years and he and his wife wanted to leave for health reasons.
"Mum's had breast cancer and a lump taken out. I'm a diabetic.
"It's a good little business."
One pub that may be benefiting from increasing mobility is Pongaroa Tavern, run by Guy and Paula Raleigh.
At 60km from the nearest large towns, Pahiatua and Dannevirke, the village was "far enough out that we're a real community", Mrs Raleigh said. Most of the business' customers were locals but others were discovering the location.
Route 52, which the locals called the "Tararua Hill Country Highway" was now fully tar-sealed, almost becoming a tourist route, with accommodation options at Tiraumea and Pongoroa.
The pair run a farm as well as the hotel.
Mr Raleigh said they concentrated on "the three fs - food, females and family" and that was winning with the locals.
"The old days of just beer swilling are over.
"When we moved from 6 o'clock closing to 11 o'clock closing and the behaviour didn't change," Mr Raleigh said.
"We think we're on the right track."
Lake Ferry Hotel owner Maurice Tipoki said this time of year was always tough for publicans.
"From mid-November to December it can be slow, people are looking after their money leading up to Christmas."
He said the smoking ban in pubs, and drink-driving blitzes had also affected businesses throughout Wairarapa.
He was aware of several pubs being on the market.
Mr Tipoki said the hotel was "a headache sometimes" as it was difficult to predict customer numbers.
But he and his wife Mary had other business interests - the Lake Ferry camping grounds and a farm in Whakatomotomo Rd - that helped make the pub viable.
Mr Tipoki said he had considered selling up after 17 years in business at Lake Ferry but Mrs Tipoki "loves the hotel, so as long as she's happy here, I'm happy to stay too".
Michael Shale of Masterton, who has been in the hospitality industry for 40 years, said some of pubs' traditional income streams were drying up.
"There was always something to save pubs, whether dart boards, pool tables, gaming machines, TABs," Mr Shale said.
But he said TAB commission was now "almost nothing", having dropped at the Marquis of Normanby, Carterton, from $1000 a week two years ago to more like $50 now.
Site rentals for gaming machines had also been "dropping drastically".
"So those two factors are making it hard - and the recession, of course."
Mr Shale said supermarkets were using beer as a loss leader, where it could sell for as little as $1 a bottle, compared with $6 in a pub.
"The difference is too great."
But Mr Shale said pubs were still necessary.
"Hospitality is important, not just for the booze but to maintain social cohesion in the community."
For the Wairarapa townships, Trust House chief executive Bernie Teahan said 2010 had been the "worst trading winter in 30 years".
Trust House runs 12 hospitality outlets in Wairarapa, six in Wellington, two in Manawatu and two in Hawke's Bay.
Mr Teahan said trading volumes were down across the board and that had been reflected in brewery profits too.
"There would be very few in the Wairarapa hospitality industry who would say it hasn't been a very difficult winter."
Mr Teahan said competition among businesses was high.
"The sector is overstocked.
"There are too many pubs, cafes and restaurants here in Wairarapa - but that gives choice to customers."
Hotel broker John Dennes of Greytown said hotel owners tended to be shy of letting people know they were on the market.
But he knew the Tinui, Whakataki and Eketahuna Commercial definitely were serious contenders looking to sell.
Mr Dennes said the pricing of a hotel was "driven by the balance sheet, not by romance, by being in the country or close to the beach".

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