Coronavirus: Auckland’s CBD restaurant sales drop as Alert Level 2 rules bite


Some restaurants in a central Auckland village restaurant cost an average of just $ 100 a day, as sales plummet due to coronavirus alert level 2 restrictions.

Elliott Stables businesses said they were struggling to see the light at the end of the tunnel as they continued to negotiate with their landlord for any type of rent suspension.

Below Alert Level 2, cafes and restaurants must accommodate customers, separate different groups at a social distance, and be served by a member of staff.

The number of people allowed inside cafes and restaurants does not exceed 100 – for Elliott Stables restaurants, it is shared between around 12 of them. Pressure is mounting on the government to move to level 1 as there have been no new cases of Covid-19 for more than a week, and only one active case.

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Now, earning on average only between $ 300 and $ 350 per day at Level 2 – nowhere near “normal” – a business could only really pay for the phone and electricity to “run the business.” “.

“I don’t know if we’ll be here in September.”

Another restaurateur is “really stressed out” and struggles to see the light at the end of the tunnel with an average turnover of around $ 300.

Open seven days a week, another restaurant’s sales averaged $ 100 to $ 200 per day.

“The maximum we’ve made so far is $ 700 to $ 800 in an entire weekend.”

Some Elliott Stables restaurants say Alert Level 2 restrictions have seen their average sales drop.

Ryan Anderson / Stuff

Some Elliott Stables restaurants say Alert Level 2 restrictions have seen their average sales drop.

“I can’t even pay the electric bill right now.”

Therefore, the profit was non-existent – “I don’t even make a profit of 10 cents, let alone $ 1.”

Le Paddock, one of the village-restaurant’s newest restaurants, had already closed, but Le Paris French Eatery was the latest economic victim of Covid-19.

Green MP Chlöe Swarbrick said that one thing that could ease the immediate pressure on dining-room businesses was rent relief.

She said she was told the owner was not particularly keen on offering discounts, leaving owner-operators to take all the pain of Covid-19.

Overall spending in Auckland CBD's hospitality industry has fallen 60% year-over-year, according to Heart of the City.

Abigail Dougherty / Stuff

Overall spending in Auckland CBD’s hospitality industry is down 60% year-over-year, according to Heart of the City.

Landlord Icon Group has already said Thing it had offered rent discounts to tenants and operators who did not wish to extend their leases were offered multiple rent deferral and / or reduction options to help them get back on their feet.

“We are passionate about Elliott Stables and we want to make sure our tenants can return to work and Auckland’s favorite mid-city dining destination returns successfully,” he said.

Restaurant Association chief executive Marisa Bidois said trade was “always difficult” for businesses in Auckland’s CBD.

Many depend on the support of office workers who had not returned to the quiet region.

A recent survey of 65 CBD companies found that 36.92% had significantly lower sales in one week compared to the same time last year.

These companies said managing operations on a single server was the most difficult aspect of Tier 2.

A Restaurant Association survey of 65 downtown businesses found that Elliot Stables aren't the only ones with lower sales.

Ryan Anderson / Stuff

A Restaurant Association survey of 65 downtown businesses found that Elliot Stables aren’t the only ones with lower sales.

To help them survive, 57 of the businesses surveyed said they needed financial assistance with rent to make it through the next three months.

The government cracking down on landlords who still expect full rent would also help their survival, they said.

Heart of the City chief executive Viv Beck said Alert Level 2 had not been a “panacea” for CBD businesses that included the hospitality industry.

Overall spending in the sector was still down 60 percent year-on-year.

Restrictive business environments and declining customer numbers have had a major impact.

“We were hoping there would be a faster transition to Level 1, and urge government agencies and businesses to bring their workers back to the office,” she said.

“With fixed costs yet to be covered and no sign of direct financial support from the government, this is incredibly difficult for many businesses – they are still in survival mode. We understand the security imperatives, but the economic cost is very high – another month is a long time for businesses that are in serious trouble.


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