My Account
Peter Quinn loves what he does, but it does not pay the bills.
Hospitality businesses in Mahurangi are putting on a brave face but fear repeated moves into alert level 3 lockdown will cripple their businesses – some of them for good.
Warkworth’s Q Café owner Peter Quinn succeeded in keeping his restaurant open during level 3 for contactless food and beverage sales at the door, but takings each day were typically down 60 per cent.
“If I was sensible I would close the doors right now – that would probably be the best option for me,” he says.
“I love what I do, but love does not pay the bills.”
Mr Quinn says he managed to survive by laying off staff, reducing opening hours and taking a pay cut to keep more money in the business. He says his staff earn more money than he does.
He thinks his business could possibly survive further lockdowns, but only because his wife continues to earn money as a teacher.
Susan Vize, owner of Chocolate Brown, The Oaks Cafe in Warkworth, and Bayside Bistro in Snells Beach, says they experienced a 75 per cent drop in revenue under level 3 and it will be impossible to continue if there are continued rises in alert levels.
“Financially, we can’t take it any more,” she says.
Like Q Café, Ms Vize’s various restaurants have kept going with contactless sales.
“We stay open to provide a service but also to meet some of the costs, because we are not getting any relief from the bank or the landlord,” she says.
Ms Vize also highlights the psychological strain – with staff who worry about their ability to pay their bills, many of whom are on minimum wage, and the stress of dealing with a few troubling customers who struggle to adapt to changing rules when alert levels change and vent their frustration on staff.
The sudden jump into alert levels also creates headaches, since it takes time to figure out what government assistance is available.
“Because it has happened so quickly, it gets very confusing,” she says.
Other café owners were more reluctant to talk about their situation, with many failing to respond to Mahurangi Matters enquiries. One café manager in Wellsford, who asked not to be named, says her business also kept going with contactless sales during level 3, but trade had been extremely light and the café could likely be out of business with continued jumps in alert levels.
Meanwhile, Leigh Eats owner Rachael Jackson says given her business is primarily a takeaway, it has not been as hard hit as cafes. However, trade dropped off by about 40 per cent under level 3 and the business may need to lay off staff if there is continued yo-yoing between alert levels.
Following Auckland’s re-entry into level 3 on February 14, the Government announced a new Resurgence Support Payment for affected businesses.
Firms that experience a 30 per cent drop in revenue over a seven-day period are eligible. Each business receives $1500 plus $400 per employee, up to a total of 50 full-time employees.
Previously, Resurgence Support Payments were assessed over a 14-day period.
Further assistance for businesses can be found on the Government’s Covid-19 website, https://covid19.govt.nz
