Covid 19 coronavirus: Rotorua hospitality sector confidence on the up

Deepak Kundal (left) and Baljit (Lucky) Singh have just opened their new Eat Streat establishment The Beer Garden. Photo / Andrew Warner

A Rotorua hospitality president says the sector is coming "back with a vengeance" after a summer that left several establishments "screaming out for staff".

And with the cafe and restaurant industry's revenue expected to rise to $6.6 billion nationwide over the next five years, some are saying business confidence is on the up.

But some eatery owners at the coalface are careful not to be too optimistic, saying regular lockdowns and no sign of the border opening are putting pressure on their post-Covid recovery.

According to new data from IBISWorld, the cafes and restaurants industry, while expected to be permanently changed by the pandemic, is anticipating an 8.4 per cent rebound in 2021-22, while the fast food and takeaways food services are expecting a 7.5 per cent rebound.

Both business confidence and consumer sentiment were expected to become positive in 2021-22, IBISWorld senior industry analyst Matthew Barry said.

However, short-term lockdowns are expected to weaken the sector's performance this year, particularly in Auckland where 41 per cent of cafe and restaurant establishments are.

Restaurant Association of New Zealand Rotorua president Sharon Wallace anticipates the industry is going to come back with a vengeance. Photo / File

Restaurant Association of New Zealand Rotorua branch president Sharon Wallace said the hospitality sector had not been as severely impacted by Covid-19 as originally anticipated and she expected it to "come back with a vengence" as the pandemic subsides.

"There were a lot of people who expected the hospitality industry to take a significant dive after Covid but we're a resilient bunch who have been able to adapt and innovate.

"We are going into our quieter months now but over summer we were slammed to the point where several establishments have been screaming out for staff.

"The demand has been high post-Covid, there's a real vibe from locals that they want to come out and support their favourite cafes and restaurants."

Wallace said Covid-19 had been a "huge learning curve" for the industry but many were coming out the other side stronger, with better customer service and a willingness to try new things.

This is backed up by IBISWorld reports which show businesses are anticipated to retain more cash on hand to survive difficult operating conditions and more establishments are offering online meal delivery services, which proved to be a lifeline during times of social distancing restrictions.

Hygiene has also been identified as an obvious focal point for eateries.

Barry said, "A greater focus on hygiene is expected to persist well beyond the Covid-19 pandemic. In addition to necessary sanitation practices, businesses will likely take greater steps to ensure that consumers see this cleaning take place to restore demand for in-house dining."

He said professional training and accreditation for hospitality workers on safe food preparation and delivery were projected to become more commonplace over the next five years.

Pig and Whistle Historic Pub and Capers Epicurean owner Gregg Brown. Photo / File

Pig and Whistle Historic Pub and Capers Epicurean owner Gregg Brown said those on the frontline were more focused on looking day to day, rather than long-term projections.

"The near future is a little murky from where I'm sitting. For every person who says there's going to be a bounce-back, another says this is going to be our new normal.

"The lockdowns certainly crucify us but the positives going forward, I understand the conference numbers are up, accommodation bookings are up, the events are coming back pretty thick and fast and I think, reading between the lines, the Government is working hard on an Australian Pacific Island bubble.

"Those things give me confidence that in the near future we may be coming out of the worst of it."

Brown was confident the industry would start to see changes in coming months, though said that was dependent on no more lockdowns.

"I know we are over the hump, we just have to get through the next few months."

Brown also said it was important to note that "while we are blaming Covid for the downturn in numbers, we also have a real homeless issue and negative crime statistics".

"I don't want to focus on those but we have to ask what effect those factors are having on our visitor numbers."

Deepak Kundal (left) and Baljit (Lucky) Singh have just opened their new Eat Streat establishment The Beer Garden. Photo / Andrew Warner

Eat Streat business owner Deepak Kundal co-owns Leonardo's, CBK and the street's newest addition, The Beer Garden.

He said there were good days and bad for hospitality owners in this new trading environment but "as long as we can survive, I am happy".

"Before Covid it was awesome but we've had to adjust to this new normal and at least we know everybody is in the same boat.

"Locals want to support us and we are so appreciative of them but it can be hard because Kiwis like to go out after work or eat early and now we're not having that later rush of international tourists to balance the night out."

Kundal said the reliance on Auckland tourism meant every lockdown there hurt the hospitality industry in Rotorua but he was hopeful conferences in winter and more events towards the end of the year would help bolster business.

"It's the unpredictability that's hurting us at the moment. We treat our staff like family and it's hard not being able to guarantee them enough hours.

"That uncertainty has made finding and retaining good staff difficult.

"Every day is a guessing game. Some are busy, some are not. But I am 110 per cent sure there will be a bounce-back. It's just whether those in hospitality are able to survive however long it takes to get there."