More restaurants in Christchurch have fallen into liquidation despite figures from the Restaurant Association showing that the industry is growing. However, the local Restaurant Association president is warning of putting “the chicken before the egg.”
The latest high-profile failure is that of Tony Astle, with six of his companies being placed into voluntary liquidation. Restaurants affected include King of Snake and Universo, which is run in the Christchurch Art Gallery.
Astle has been dogged with troubles in recent months. Suppliers have put his businesses on stop credit, and staff have been seen purchasing restaurant supplies at Pak N’ Save and Countdown using the day’s takings. His new bar Chiwahwah has also face multiple delays in construction, although it is not one of the companies now in liquidation.
Local Restaurant Association president Peter Morrison has warned that the city simply isn’t ready for the influx of hospitality openings, and some will inevitably suffer.
"It's like the chicken before the egg,” he said. “We've got too many licences and not enough people. When all the new places were being built we were meant to have a convention centre open [and] a metro sports stadium open. We haven't got the facilities that were promised."