‘Hanging on by their fingernails’: Hospitality’s fight for survival – The Front Page
New Zealand’s hospitality scene feels like it’s at a crossroads.
On the one hand, cafes, bars and restaurants are battling a brutal mix of rising costs, mounting debts and changing consumer habits.
Venues are closing, owners are exhausted, and many are wondering how much longer they can hang on.
On the other hand, Aotearoa has just taken a historic step onto the global culinary stage, with the launch of its first-ever Michelin Guide and Kiwi restaurants receiving coveted stars.
It’s being touted as a moment that could reshape tourism, attract high‑value visitors, and shine a new spotlight on the talent in our kitchens.
Hospitality NZ’s Kristy Phillips told The Front Page that the industry at the moment is in mixed health.
“It’s that discretionary spend that makes a difference to our businesses, and we’re often the ones who feel the effects first.
“At the same time, it’s not just the cost of living now; it’s those compounding effects that we’ve had over the last few years. So we’re seeing businesses that have been hanging on by their fingertips, and now they’re describing it as hanging on by their fingernails.
“But they’re still there, and they’re still doing their best, and they still want to be part of their community,” she said.
Hospitality closures and liquidations of popular eateries often dominate headlines, and Phillips argues there is not enough attention on what replaces them.
“I think what hurts even more is the fact that there’s often a new business going in or something new coming into the space that’s actually gonna be really exciting and breathe new life into the area, and that doesn’t get enough attention.
“Those people are taking the chance and bringing something that brings a dream to life and to be able to say, ‘Yes, this has closed, but wow, look what’s coming next,’ that’s where some of the focus also has to be,” she said.
A total of 110 hospitality establishments were recognised by Michelin, with one restaurant, Essence in Queenstown, becoming Oceania’s first two-star restaurant.
Another 14 received one star, 35 achieved Bib Gourmand status, and 60 were put on the selected restaurant list.
Parnell’s Tala became the world’s first Michelin-starred Samoan restaurant.
The 14 recipients of one Michelin star were:
- Ahi, Auckland
- Amisfield, Queenstown
- Inati, Christchurch
- Kika, Wānaka
- Jano Bistro, Wellington
- Logan Brown, Wellington
- Mudbrick, Waiheke
- Ortega Fish Shack, Wellington
- Paris Butter, Auckland
- Rātā, Queenstown
- Sherwood, Queenstown
- Tala, Auckland
- Tantalus Estate Restaurant, Waiheke
- Tussock Hill, Christchurch
Listen to the full episode to hear more about:
- Putting NZ on the map
- A halo effect for tourism
- The numbers behind the hype
- The future of hospitality in NZ
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5pm. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.