L3 offers little respite for eateries

A move to level 3 was supposed to make life easier, but for most Taranaki hospitality operators and restaurant owners it won’t provide the much needed relief.

The only way cafes, bars and restaurants are able to open is if they can deal with customers in a ‘‘contactless’’ way, which means selling food online and getting it delivered.

But getting the kitchen up and running is expensive and there is no way of knowing what the demand, if any, will be.

Taranaki Hospitality president and Good Home owner David Stones said moving to level 3 would not make any difference for most hospitality operators in Taranaki.

New Zealand has been at alert level 4 since March 25 and a decision will be made by Government on Monday about whether that status will change, and when.

‘‘It means you can do a little, but most operators won’t open, won’t do takeaways.’’

To get kitchens up and running again is costly and the profit margins might not be there, he said.

‘‘It’s very challenging. It’s now coming down to relationships with landlords and banks. We’re all very lucky to have wage subsidies, but it’s a small part of it. The biggest costs are rent.’’

Hospitality margins are not that great, Stones said.

‘‘The new normal for hospitality will be a little bit different.’’

Nice Hotel owner Terry Parkes said he wouldn’t be able to open until the country moves to level 2.

‘‘It’s terrible. But it’s just one of those things.’’

And when they open it will be different, he said.

‘‘It will be a slow process because people aren’t going to rush and go out [to dinner]. This is a long term thing for us. We won’t be able to afford to have the same staff levels for a start.’’

He has been sponsoring and helping people in the region with fundraising for years and now he’s humbly asking for support when he opens, he said.

‘‘It’s going to be very important to support local.’’

Mark Louis, co-owner of Polpetta, Hour Glass and Our Place in New Plymouth, said they were looking at using Delivereasy for Polpetta.

They went through the process of joining up with the delivery company a few weeks ago, but didn’t use it as New Zealand went straight into level 4.

‘‘So, we’ll utilise that. But we are a wee bit concerned about Hour Glass. You probably wouldn’t think of Hour Glass as somewhere to get a take out. No one will be sitting at home thinking ‘oh yeah we’ll get Hour Glass tonight’.’’

And they won’t be able to open Our Place, he said.

‘‘Even level 2 is going to be really

‘The new normal for hospitality will be a little bit different.’’ David Stones

Taranaki Hospitality president

difficult. One hundred people, that’s a third of our capacity.’’

Crowded House owner Doc van Praagh said he couldn’t open until level 2 status was reached.

‘‘There’s a company that will do deliveries – you pay them a commission – we’re looking at. We might run a small menu and do deliveries. But the set up costs might not be worth it if it’s only for a couple of weeks.’’

He’s been lobbying MPs to get the Government to come to the party, he said.

‘‘It’s tough out there.’’ Venture Taranaki boss Justine Gilliland said the important thing for business was certainty.

‘‘I think what is critical now is knowing the timeframes around those levels, which will allow people to plan.

‘‘We are yet to learn when the nation will be ready to move to level 3 or what level 2 looks like, but can see both challenges and opportunities for businesses in Taranaki under such restrictions.’’