Mrs Waqanimaravu said the bar industry in Rotorua was competitive but the owners all knew each other and were quite friendly. She didn't believe there was an oversupply of bars in the area.
"Seismic was a restaurant and bar, not just a bar. You have the nightclubs for the younger people but we were targeting the 30-plus age group who tended to have more of a disposable income.
"Closures are part of the business but this is an end of an era, especially for a place where we were so passionate about. We had some good times and are still friends with many of the people we met while working there."
She said the key to any successful business was to focus on the people. "People make the place. If you don't have any people there, it's just an empty shell.
"Having the right staff is also important. We had people that were green, had no hospitality experience, but we were patient and took the time training them and providing them with professional development. The key is customer service, whether it's making sure there is a clean glass on the table to ensuring you're providing quality food. It's all important."
Rotorua Chamber of Commerce chief executive Roger Gordon said hospitality was a challenge but the majority of owners were running successful businesses.
"They have to understand their business, be aware of the current environment and learn to adapt their processes quickly to any changes," Mr Gordon said.
Winter months were traditionally slower for bars and restaurants with low numbers of domestic and international tourists visiting the city, he said.
The Shed owner Reg Hennessy could not be reached for comment.
