Bay of Plenty hospitality sector struggling to fill summer jobs as diners spend nearly $800m in year

Bay diners spent nearly $800 million at local cafés, 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.

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.”

Rotorua restaurateur Ray Singh, owner of Eat Streat's Indian Star. Photo / Andrew Warner

The owner of Indian Star Restaurant in Rotorua, Ray Singh, said the figures from the report were better than in 2020.

“We had the worse year in 2020.”

Singh, who also owns Urban Gusto and Indian Star Express, said domestic and international visitors meant more people were dining out.

“It is looking better, things are improving. It is going to be busy over the summer.”

However, he said, reports of Covid-19 cases were rising again, and it was still a struggle to find staff.

“We can cope with that, but it is a struggle,” he said. “Customers are ready, wanting to give us their business, but finding staff is a major issue at the moment.”

Singh said within the last two-and-a-half years, the Indian Star Restaurant had to operate six days a week instead of seven for the first time due to staff shortages.

“Our chef went on a break and we couldn’t find a replacement or reliever. They need a rest, too.”

But things were improving, and the restaurant was now fully staffed and back to seven days a week, he said.

“We just have to stay positive.”

El Mexicano Zapata Express owner Eduardo Diaz.

El Mexicano Zapata Express owner Eduardo Diaz said nearly $800m spent in the region’s hospitality sector was better than last year and the year before.

“It is a huge improvement.”

Diaz said he had found that 14 to 15-year-olds were keen to work, and had employed a few of that age group at his Mexican restaurant on Amohau St in Rotorua.

But, he said, it was the 19 to early-20-year-old age group that was tricky to employ.

“They are happy to work during the week, but they just don’t want to work on the weekends, and that is what hospitality is all about.”

He said he had also noticed more restaurants popping up, particularly on Amohau St.

Diaz said he had been “very lucky” to have secured dozens of group bookings for Christmas functions and office parties.

“If you have good food, good service, and a good name, you will never struggle. People will come and support you.

“We have to stay optimistic. We have to be positive going forward.”

Restaurant Association Rotorua branch president Sharon Wallace said the year had been “up and down”, but the hospitality industry was “doing well”.

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.”