Martin Hawkins is closing Awanui's Big River Cafe, with the cost of living crisis and state highway closures severely impacting on the business.
Martin Hawkins is closing Awanui's Big River Cafe, with the cost of living crisis and state highway closures severely impacting on the business.
A popular Far North cafe is closing its doors, with the loss of eight jobs, falling victim to the cost of living crisis, tough economic times and the constant state highway closures that have deterred people from heading north.
Martin said at the time that coming from the UK, he could see the potential of Awanui and decided to buy in the Far North town with his Kiwi wife.
‘’It’s a great place with so much potential. We’re going to change the name [of the cafe] back to Big River, which is what Awanui is, and is in keeping with the town’s heritage. This big river was the major port for the Far North and was a real bustling place. It’s a fantastic place and there’s so much more potential to be realised,’’ he said then.
The couple built the cafe up to employ six staff, but now those “brilliant” staff, and the Hawkinses are out of a job.
Martin said while 2023 was “a great year for us”, things had tanked so badly in the past six months that the cafe was no longer viable.
‘’Yes today is our last day. It’s all happened so quickly in the past six months. 2023 was a great year for us, but 2024 came ... but the visitors didn’t. It’s such a shame, but I fully understand the reasons why,’’ he said.
‘’There are the tough economic times, the cost of living crisis means people have to be careful where they spend their money, and a big thing is the Brynderwyns and Mangamuka (State Highway 1) closures. That’s stopped the freight drivers who used to stop in as they came past, many visitors aren’t coming here as a result of the closures and it’s been really tough.’’
He said he appreciated that people had to focus on providing food for their families and that ‘having a nice cup of coffee or sweet slice’ are the things that people have to give up when finances are tight.
‘’In a cost of living crisis like this we [hospitality] are the first people to be cut out of people’s spending, when it comes to putting food on the table. So I totally understand that and appreciate just how hard it is out there.
‘’We didn’t want to do this, but we’ve got no option. We have six staff, plus ourselves, so that’s eight people unemployed and looking for work at a time when there are not a lot of jobs out there.’’
Martin said his staff were brilliant and he also put out a huge thanks to the many loyal customers who had kept the cafe going.
Awanui’s popular Big River Cafe is shutting, a victim of the tough economic times and persistent road closures.
‘’There are so many fantastic people here, but that’s the reality that people have to prioritise their spending at times like this.’’
When asked what the future held for he and Glenys, he wasn’t too sure at this stage.
‘’Unemployment and possibly homelessness. We are now looking for jobs and hopefully there’s something out there for us and our great staff.’’
The cafe closure comes after it was revealed that businesses are doing it tough with the number of company insolvencies in Northland jumping almost eightfold in March from the same time last year, leaving businesses calling for administrators to step in. (Big River Cafe is not in liquidation or insolvent though.)
Figures from the Ministry of Business, Innovation and Employment (Mbie) show the number of company insolvencies with a Northland registered post code was three in March 2023. That jumped to 23 company insolvencies this March.
Affected sectors include civil engineering, construction and trades, pharmaceutical preparation, cleaning and horticultural services, agricultural research and medical general practice.
Of the 23 insolvencies, 13 companies were operating under the umbrella of the same holding company and had entered into voluntary administration rather than receivership or liquidation. Of the other 10 businesses, another three went into voluntary administration, six went into liquidation, and one into receivership.
Voluntary administration is when an administrator is appointed to review and rearrange a business to avoid liquidation, and receivership is when a receiver is appointed by a secured creditor to deal with the secured assets. Liquidation is when a liquidator takes control of a business and its financial affairs to repay debts to creditors.
Northland Chamber of Commerce chief executive Darryn Fisher said the cost of living crisis was “100 per cent” still having an effect. About half a dozen chamber members had chosen to “close up shop or sell, get out of the industry or move overseas”, he said.
‘’Whether it’s fatigue or they’ve had enough ... there’s lots of reasons. It’s definitely tough out there, and it’s going to continue to be for the next six months. Business confidence is probably the lowest I’ve ever seen it. Expect to keep seeing these sorts of numbers.’’
