The Restaurant Association claimed 1000 businesses in the industry had been lost since the start of the pandemic, and many will disappear if the Government doesn't provide more subsidies and tax breaks.
Chief executive Marisa Bidois said many businesses reopened in Auckland yesterday, but they were putting on a brave face for customers.
“Since the beginning of the pandemic in March 2020, there has been an estimated net loss of over 1,000 hospitality businesses in Aotearoa, representing approximately 13,000 jobs.
“Following the return to alert level 4 in August 2021 we expect the fallout to be significantly higher over the next three to six months,” said Bidois.
Auckland moved to level 3 on Wednesday, 22 September, allowing many hospitality businesses to resume trading via pickup and delivery. Kiwis in other parts of the country had been slow to return to normal, despite restaurants being open, albeit with reduced capacity.
Bidois said many reports have shown trade is slower than previous level 2s, and it would be great if the community could support local eateries by dining out.
To encourage that and to help tide them over, the Restaurant Association released the 'Future of Hospitality Roadmap' - ideas to prevent another thousand businesses from going under.
Stage one of the Roadmap focused on reopening and set out the immediate steps needed to support the full reopening of the sector over the short-term, in line with broader COVID-19 pandemic developments.
One idea included the extension of the wage subsidy to include businesses affected under level 2. While businesses can apply for the subsidy at level 2 if any other part of the nation is at level 3 or 4, when Auckland moves to level 2, no one will be eligible for a subsidy despite the ongoing financial difficulties hindering the hospitality sector.
The Restaurant Association also asked Finance Minister Grand Robertson for a 'reopening payment' that would help businesses order stock, set up, and reopen.
Bidois also suggested a 'lockout subsidy' based on a venue's typical sales at level 1 or the number of full-time employees, a 'food waste minimisation' payment, up to $20 meal subsidy for customers who dine out or vouchers, and GST-free dining.
Bidois said the industry had met with Robertson and other officials and presented its ideas.
