Cost of living crisis, recession no barriers for these new Whangārei businesses

There’s was no fear or loathing for Beer & Loathing owners James Sinclair, Sam Tarrant and Tim Bell when it came to opening their new business. Photo / Denise Piper

The cost of living crisis is biting, more businesses are going into receivership and consumer confidence is down: 2024 was not exactly the ideal time to start a business. But new Northland business owners say they saw a need and decided to go for it, though they admit they’re probably a little crazy. Northern Advocate reporter Denise Piper caught up with a selection of them.

The recession made sisters Kylie Makaea and Kelly Chapman plan conservatively when setting up their new Northland business, Lil Nana’s Cafe in Kensington.

They initially planned to offer their traditional Māori and Pasifika food only at night from Thursday to Saturday.

But after being “blown away” by customer demand when they opened in early October, the whānau-led business quickly pivoted to opening for lunch from Mondays to Saturdays, on top of the three-night-a-week dinner serice.

Makaea believes the cafe’s recipe for success comes from offering something different in Whangārei, where only one other eatery sells hāngi and none offer a wide selection of traditional Pasifika food.

The sisters learned traditional cooking from their Māori nanas and Makaea’s Nuiean and Cook Islander husband. Their mother and auntie make all their baked goods on-site, while Makaea’s mother-in-law was flown-in from the islands to ensure the Pasifika food met the mark.

The women who taught Makaea and Chapman to cook are given a nod, not only in the name Lil Nana’s but also through a wall inside the cafe on which their photos are proudly displayed.

The family connections don’t stop there: All of the staff are whānau, from their children working behind the counter to cousins who are called in to help when it is busy.

“We’re lucky we have a big whānau,” Makaea said. “If we’re all for each other succeeding, we all help out.”

Both women have also always cooked for their large family and spent their lives around food. Chapman also has a history of working in hospitality – including at Two Double 7 LunchBar, Poroti Tavern and Kamo Club – while Makaea previously worked as a healthcare assistant.

Sisters Kelly Chapman and Kylie Makaea believe Lil Nana’s Cafe in Kensington is hitting the mark with its traditional Māori and Pasifika food. Photo / Denise Piper

Despite the cost of living crisis, the business has certainly met its niche, with food selling out most days, Makaea said.

“For us, it’s about a whānau coming and having a full puku and not having to pay big amounts.”

More is more when Beer & Loathing opens its doors

Opening the American-style bar Beer & Loathing on Whangārei’s Vine St was all about adding a vibrancy to Whangārei’s nightlife, according to one owner, James Sinclair.

The new bar, which opened in former McMorrissey’s in late August, is owned by Sinclair, Sam Tarrant and Tim Bell.

Words like “recession” strike no fear in the hearts of Sinclair and Tarrant, who also opened Whangārei bar and eatery AstroBoy in the middle of Covid red-light restrictions in early 2022.

In fact, the growing success of AstroBoy helped spur the owners to branch out, Sinclair said.

Beer & Loathing owners Tim Bell, James Sinclair and Sam Tarrant are adding to the action in Whangārei’s CBD. Photo / Denise Piper

“100% we thought about the recession, but we could gauge from our business that there’s hope that we’re coming out of it.”

Beer & Loathing is also about improving the choice for customers and adding to the action in town, he said.

“Even though we’re opening competing businesses, we want more space for people to go to, otherwise they don’t come out at all,” he said.

“Hospitality is also a relatively recession-proof business. Maybe gone are the days of big corporate lunches, but the community want a reason to be out and meeting people.”

Beer & Loathing offers plenty of events to engage, with something on virtually every night it is open, including live music, stand-up comedy and karaoke.

Sinclair’s parents used to own popular venue Killer Prawn and his uncles used to own McMorrissey’s. Coming back to the former Irish bar was like coming full-circle, he said.

But while the recession has not caused too many obstacles, the bar did struggle to get its liquor licence before opening, despite the owners never having any alcohol-related issues at AstroBoy, he said.

Whangārei District Council’s strict closing times – which means al fresco dining has to stop at 10pm and the bar has to close at 1am – also places restrictions on expanding, Sinclair said.

Another restriction is the ability to get good staff, and he wished more Northlanders considered hospitality as a career.

“When I was growing up, it was a viable career move. I saw my uncles being successful with it and it looked like a good way to live your life, even though it’s taxing.”

Despite the restrictions, Beer & Loathing is doing well so far and looking ahead to more events, such as a street party on February 8.

Clove on Cameron meets need for unique women’s fashion

Lisa Coradine says she noticed a gap in the market for personal styling when she decided to open Clove on Cameron in Whangārei. Photo / Denise Piper

Lisa Coradine admitted it was a girls’ weekend which inspired her to start woman’s clothes store Clove on Cameron in the former Loftie lifestyle store on Whangārei’s Cameron St.

“They all said, ‘You should do it’ ... It felt like there was a bit of a gap in the market.”

Clove on Cameron provides upmarket women’s fashion, gifts and jewellery. As well as a unique range, one-on-one personal styling help is on offer for those who need assistance.

Coradine said while she knew times were tough when she opened in June, she accepted things are always tough in business.

The real estate agent has previously run a party-hire business, as well as a florist’s shop which bloomed despite the difficulties of Covid restrictions.

“I started Cheers Party Hire in my garage with 100 knives and forks ... I sold Cheers six weeks before Covid and sold the florist’s last year [2023].”

Coradine said Clove on Cameron is going well, although a lack of parking and lack of thriving shops nearby are bugbears.

“It has been really well-received. It will take a while to see any profits but it’s definitely holding its own,” she said.

“People do like to have a nice shopping experience, and we [offer a mid-range] price point.”

Plans for the future include running more in-store events, such as shopping evenings and ladies’ nights.

Finding an unmet need key to success, NorthChamber president says

NorthChamber president Tim Robinson said there is always opportunity in business and recessions can sometimes reveal a new need or niche.

“I applaud anyone opening a brick-and-mortar store, but if they’ve done their research and got a product that nobody else has, it’s still okay to open in these times.”

While some landlords may offer discounts to attract new tenants, other new businesses may struggle to get a start-up loan from a bank, he said.

But those who have enough capital to start are in a good position, Robinson said.

“Sometimes starting a business in tough times can be an advantage: number one, you’re fulfilling a market need now. Number two, you’re putting yourself ahead of the market.”

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years’ experience in journalism and is passionate about covering stories that make a difference.