Restaurants ride shotgun & raise $370k for cyclone relief –
Hospitality businesses across the country hosted the nation’s biggest dinner party on Monday March 20, raising $370k in support of those impacted by Cyclone Gabrielle.
Masterminded by Al Brown and supported by the Restaurant Association, 157 businesses across the country took part, with 6,600 diners purchasing tickets.
Restaurants from Northland to Stewart Island cooked up a two course menu with proceeds going directly to those impacted by the cyclone.
Thirty-five per cent of the proceeds will also go directly to hospitality communities impacted by the recent weather events. The remaining 65 per cent of the funds will be split equally across the 5 X mayoral/relief funds in Gisborne, Hawkes Bay, Coromandel, Auckland and Northland
“I couldn’t be more stoked with how Cooking Up A Storm came together. It just started to snowball, driven solely by goodwill, compassion and charity. It made me realize that when adversity and pain appear out of nowhere, balancing that out and riding a shotgun will always be empathetic and generosity,” said Al Brown.
Restaurant Association CEO Marisa Bidois added “the stories both from our hospitality whanau and people in the affected areas have been devastating. Hospitality is what we do best so being able to support those who have been impacted by hosting people in our venues is the perfect way for us to give back.”
“We’re so proud of the way our communities came together and look forward to handing the funds over to those who desperately need them.”
Hospitality businesses that wish to apply for the fund can do so by completing an online form here https://www.restaurantnz.co.nz/hospitality-cyclone-grants-application/
SME concerns grow as risk of recession continues –
A nationwide survey of 1,000+ SME owners, directors and managers from across New Zealand by MYOB has highlighted the ongoing impact of inflation and the Reserve Bank’s efforts to control it are taking its toll on local businesses.
Based on recent inflation increases, more than a third (38%) of local SME leaders could only sustain their business for up to six months before they would need to dip into their personal finances or seek additional finance, according to new data from the 2023 MYOB Business Monitor.
A third (33%) of local SME decision-makers who respondents to the survey are ‘quite’ or ‘very’ concerned about the impact increasing interest rates will have on their business’ finances, and just over a fifth (21%) say their current cashflow levels are poor or very poor, while 44% say they are satisfactory and 35% say their cashflow levels are good.
On average, SMEs estimate their business overheads, such as rent and electricity, have increased by over $1500 per month in the last year, with just 13% of SMEs saying they haven’t seen their costs increase in the past 12 months.
MYOB spokesperson, Jo Tozer, explains that inflationary pressures continue to dampen SME confidence, which has remained stubbornly low over the past year.
“Across the country, SME leaders have pointed to rising inflation and the high cost of living generating the most pressure, with three quarters saying it was having the biggest impact on their level of confidence,” said Jo. “Likewise, the other major influences on SME confidence are also inflation-related, including the cost of fuel (64%) and rising interest rates (61%).”
“As a result, confidence levels among SMEs have remained largely unmoved since our last Business Monitor in March 2022, but these are worryingly close to the historic lows we saw immediately after the outbreak of the COVID-19 pandemic,” Jo adds.
More than two-thirds (69%) of local SMEs believe the New Zealand economy will decline in the next 12 months, one percentage point more than the same time last year (2022: 68%), with 30% believing that decline in economic activity will be significant. Just 16% of SME decision-makers expect the economy to improve – the same proportion as seen in the 2022 Business Monitor, and 13% believe it will remain the same.
Low growth and constrained profitability
“Tough trading conditions and falling consumer confidence have also seen local SMEs struggle to achieve revenue growth over the last year, and profitability in the last quarter has become particularly constrained,” said Jo.
Just over one-in-five (22%) local SMEs saw their revenue improve over the 12 months to March 2023, while more than a third (34%) saw revenue decline. The majority – 43% – say their year-on-year revenue has remained static.
The past quarter has also seen profitability restricted. Forty-five percent of SMEs report that their business has become less profitable over the last three months, while 41% say it has stayed the same. In contrast, only 13% of SMEs say their business has become more profitable over this time.
“In this sort of low growth environment, where businesses are dealing with increasing cost pressures, SMEs are finding themselves with dwindling cash reserves, and becoming more vulnerable to a growing number of external shocks – from natural disasters to a downturn in the economy,” Jo explains.
“With these risks and pressures in mind, heading into the new financial year is a good opportunity for SMEs to review their fundamentals – cashflow, debt levels and the stock they are carrying – and use this as a time to reset their business for a tighter market . Working with their accountant, bookkeeper or financial advisor now to start putting in place strategies could prove vital to their survival if there was further downturn in the economy.”
Risk of recession growing
On top of the most recent StatsNZ GDP data showing the economy shrank by 0.6% in the final quarter of 2022, the falling profitability and revenue amongst SMEs could also point to a possible contraction in activity for the first quarter of 2023.
According to MYOB’s Business Monitor, recession warnings are flashing red for the SME community, with 80% polled saying they are concerned about the risk of the New Zealand economy entering a recession in 2023. If this occurs, the survey insights show it could generate a wave of cost-cutting among SMEs, which will further limit local growth.
When asked what changes they would make to their business plans or operations if New Zealand was to enter a recession, the Business Monitor insights revealed:
- 38% would implement strict cost controls across the business
- 29% would dip into personal savings to keep trading
- 18% would reduce marketing spend to save money
- 14% would freeze wages/salaries
- 14% would need to increase the time they take to pay bills and suppliers
- 11% would close the business altogether
“This is a critical moment for many local SMEs, as they face the risk of recession with very little in the way of resources to give them a buffer against a major downturn in trade. Rampant inflation, a significantly disrupted supply chain and recent extreme weather events have all taken their toll on SME reserves – particularly in sectors like agriculture, hospitality and retail,” says MYOB’s Jo Tozer.
“SMEs give a lot to our local communities and they are going to need a great deal of support this year, so we’d encourage policy makers to give this careful consideration before implementing any changes which could add to the already growing range of costs to SMEs. For the rest of us Kiwis, if it is within your means, please continue to buy local to support our diverse and valuable network of small and medium businesses.”
Active NZ market a beacon for hotel investors says JLL –
The momentum in the hotel sector has been carried through into 2023, with the value of deals that have gone unconditionally this year, already passing $100 million and are currently under negotiation.
Having transacted the record $170 million sale of Auckland’s Stamford Plaza late last year, now refurbished and re-opened as the JW Marriot Auckland, JLL Director Hotels & Hospitality Nick Thompson says the active New Zealand market is once again a beacon for investors seeking stable, long-term performance.
“Through the first quarter of this year, we’ve already seen five major deals go unconditional for a combined total of over $100 million – and there’s more to come. While other commercial sectors are still encountering headwinds, hotels continue to perform strongly with rebounding international tourism fueling their desirability both domestically and internationally.”
The most recent of these deals transacted by JLL is the purchase by Distinction Hotels Group of the 253-room Mount Cook Hotel Collection, consisting of the Mackenzie Country Hotel, Heritage Gateway Hotel and Countrytime Hotel in Twizel and Omarama.
Geoff Thomson, owner of Distinction Hotels Group, says the return of international visitors was a key factor in acquisition, and a growing influence on activity up and down the country.
“More tourists back on our shores is great news for the hotels and hospitality industry. Adding three well-positioned assets to our portfolio in the South Island is exciting and we’re looking forward to integrating the Distinction Hotels brand into the beautiful Mackenzie District.”
JLL head of Debt Advisory, Mark Farrands, says counter-cyclical activity in the hotel and accommodation sector is supported by appetite from the funding market remaining strong.
“At the end of 2022, we received a very strong response from the funding market for a well-occupied student accommodation asset, with 15 lenders providing attractive indicative terms across a range of banks and non-banks, both onshore and offshore. Hotels and accommodation, especially in New Zealand, is a market segment that has performed better and better since 2022 when the rest of the market slowed down.”
According to a Real Capital Analytics report, JLL was the most active broker in the capital markets sector across New Zealand in 2022, transacting over NZD$500 million. The analysis also placed JLL as the top-ranked hotel broker in New Zealand based on sales volume, and the top broker for hotel transactions across all of Asia Pacific.
McPlant nuggets premiere in Germany –
The world’s first plant-based nuggets at a McDonald’s restaurant will be available in Germany’s 1450 outlets today, replacing the vegan burger.
Also new on the menu is the McPlant Burger. It replaces the vegan burger and the Fresh Vegan TS, and McDonald’s has emphasized the plant-based characteristic of the nuggets and patties, avoiding the vegan designation.
This makes Germany the first country market with plant-based nuggets on the menu boards. According to the company, this is also the first time a plant-based alternative has been available in a Happy Meal.
McDonald’s and Beyond Meat worked together to create the new plant-based nuggets and tested them in nine restaurants in Stuttgart in August. The nuggets are made from peas, corn, wheat and tempura breading. Beyond Meat has also had a chicken substitute available in restaurants since mid-2021, when the company rolled out its revamped recipe.
In addition, the McPlant Burger, which is already available in Austria, the UK and the Netherlands, among other countries, is now permanently on the menu in Germany.
With the two new products, McDonald’s, and manufacturers Beyond Meat, aim to appeal primarily to flexitarians. This is because their market share is growing steadily in the German population. For the product launch, the company actively involved guests in the development in a broad-based market test.
The McPlant nuggets are said to be a real alternative to Chicken McNuggets in terms of taste.
The McPlant burger with the Beyond Meat patty is also based on pea protein in combination with processed cheddar cheese, tomatoes, lettuce, pickles, onions, sandwich sauce, ketchup and mustard, and is claimed to be able to convince even die-hard McDonald’s fans .
The burger replaces the Fresh Vegan TS or Veganburger on the menu and no longer bears the vegan label. This is because animal products such as eggs and milk are used in sauce and cheese sandwiches.
Guest wishes and transparency first
To distinguish the plant-based nuggets from the chicken nuggets, they come in a drop shape that is not found in the classic nuggets.
To publicize the new McPlant products, staff will be distributing free sample portions in McDonald’s restaurants in Germany from February 22 to March 01, 2023. From 02 to 05 March 2023, McDonald’s fans and registered users of the McDonald’s app will then have the chance to win one of 100,000 coupons each to try the McPlant Burger and McPlant Nuggets for free.
Food experts meet to judge New Zealand’s finest produce –
Michelin-star chef Pim Techamuanvivit is joining internationally renowned New Zealand chef Peter Gordon and 25 local food experts to judge the Outstanding NZ Food Producer Awards in Auckland this week.
More than 290 locally harvested, grown and made food and drink products will be assessed on Tuesday 21 and Wednesday 22 February at Gordon’s restaurant, Homeland, known as The Food Embassy for Aotearoa and the Pacific Islands.
Born and raised in Bangkok, Pim (pictured above right), took a circuitous route through the world of food from blogging (her blog Chez Pim attracted more than 250,000 views a month), to make award winning jams.
In 2014 Pim opened her first restaurant, Kin Khao in San Francisco, receiving a Michelin star in 2015.
A few years later she opened Nari, her second San Francisco restaurant.
Nari quickly made it onto many Best Restaurant lists including those by the New York Times, the San Francisco Chronicle and Esquire Magazine. In 2018, she took over Nahm at the Como Metropolitan in Bangkok as the executive chef. Nahm has retained a Michelin star every year since.
With her Kiwi partner, she also enjoys spending time in Auckland and the organizers of the Outstanding NZ Food Producer Awards are delighted she’s joining the judging panel to sniff, taste and assess food from Aotearoa this year.
Cumin Spiced Wild Tahr Pies, Wild Venison Bressola, fresh crayfish, Jalapeno Kombucha and Organwurst Sausages, locally made ice cream, cheese, drinks and gluten-free products are among the New Zealand foods being judged.
Outstanding NZ Food Producer Awards Gold, Silver and Bronze medal winners will be announced on Tuesday 21 March 2023 with category champions and special award winners announced at the Champions Party 2023 on Tuesday 18 April at the Glasshouse in Morningside, Auckland.
Contingency planning essential says NZ Events Association –
The New Zealand Events Association (NZEA) says the cancellation of multiple events at short notice is heartbreaking for organizers and concertgoers alike, but says it is a timely reminder of the necessity for emergency contingency plans.
“Just when things seemed to be getting back to normal for the events industry, it started raining and hasn’t stopped,” says Elaine Linnell, General Manager, NZEA.
“It’s devastating for all our members as the cancellation of major events has a knock-on effect which is hitting hard. It also demonstrates the necessity for emergency plans – after all, this is New Zealand and the unexpected can occur at any time thanks to Mother Nature.”
“Deciding on a cancellation is always difficult and takes into account multiple considerations including loss of revenue, disruption to travel plans and other arrangements for ticket holders, difficulty in communicating clearly with all stakeholders, including suppliers, and potential reputational damage (which can result if the event goes ahead in bad weather or is canceled, and the weather reflects).”
But the one overriding concern is the safety of everyone concerned. “Cancellations are always a minefield and it’s upsetting for everyone,” Linnell says. “That’s why having a plan is essential, whether you’re organizing Elton John, or running the local Jazz in the Park.”
The NZEA’s top tips include:
1. have a plan
Always plan for the possibility of cancellation or postponement. If the weather changes, you’ll be ready to communicate effectively with vendors, suppliers, ticket holders and even transport providers. Health and safety is paramount, and communicating plans early helps everyone understand what needs to happen. Working together is key; arrange an alternate date ahead of the planned fixture if possible, and include venues, talent, and suppliers in the planning for the second calendar entry.
2. Get insured
Loss of profits is among the biggest concerns with event cancellations or postponements. A lot of work goes into every event, and delaying or stopping the show is a huge waste of effort. An insurance policy provides some peace of mind, with several companies available to cover your event. Organize well in advance of your fixture.
3. Communication is key (from start, to finish, with everyone)
Well ahead of your event, be sure to include cancellation clauses in all vendor/supplier/talent contracts so everyone knows what to expect. If a cancellation is necessary, prompt and efficient communication across your supply chains is just as important as fast and efficient communication with your ticket holders.
Update your website and social media platforms, send emails and/or text messages, and send push notifications on the event app (if applicable). Get everyone on board with a consistent message: your talent, suppliers and vendors will get the word out. Answer their questions and be specific. People want reasons for cancellation or postponement, they want to know about refunds, and they want information about new dates, times and venues.
4. Provide clear reasons for cancellation or postponement
Before sending any messages, clarify why the event isn’t going ahead. Severe weather is a safety hazard; wind and flooding can compromise the venue, interrupt transport, and crowd control can become difficult or impossible. Explain ‘why’ concisely so everyone understands the necessity for action with safety as the top priority.
5. Reflect and assess
Regardless of whether the cancellation or postponement went well or not, take the opportunity to evaluate your response. Determine what went right and why with the same vigour as assessing what went wrong. Use it as a learning experience; we can’t prevent natural disasters or significant weather events, but we can change how we respond to them. Include suppliers and vendors in your assessment, and even consider reaching out to ticketholders with a follow-up survey. Your customers have views and expectations, understanding them is important to help create a better customer experience, even if the weather has ruined the fun.
“Planning ahead is the name of the game,” says Linnell. “Nobody wants to see an event canceled, but we all want to get home safely and we all have to accept that we live in an unpredictable world. Bad things do happen, but that’s how we deal with them that determines our success.”
Te Pūkenga- Facing into the challenge of change –
By Peter Winder
Chief Executive of the New Zealand Institute of Skills and Technology, Te Pūkenga
Biography
Peter Winder was officially appointed Chief Executive of the New Zealand Institute of Skills and Technology, Te Pūkenga, in December 2022 after guiding the network through a reset and realignment as Acting Chief Executive since July of that year. Mr Winder has been involved at a governance level in the tertiary education sector for several years, including the establishment board of Te Pūkenga, and brings a wealth of experience in managing large and complex organisations.
Facing into the challenge of change
As a reader of Hospitality Business, you will know more than most about the challenges the last few years have presented; the hospitality and related service sectors have had a rough time of it. You’ll appreciate the year ahead will come with its own hurdles.
If you’ve heard of Te Pūkenga, you’ll more than likely know that it’s an organization that has also faced – and will face – significant challenges. Like you, we confront these and actively seek the opportunities and innovations needed for us to thrive. And, like you, we do so with those we serve in mind.
In bringing together the vast experience and expertise of the network of polytechnics and industry training organizations, Te Pūkenga is on track to become Aotearoa New Zealand’s premier vocational education provider.
We have already started to leverage the many areas of best practice that sit in parts of the country and make them accessible to every employer, apprentice, workplace trainee and classroom ākonga (learner). Our mahi involves collaborating with the Ringa Hora (Services) Workforce Development Council to ensure that we develop the best outcomes for the learner and their whānau, our communities, the employer and industry.
Add to this the integration and expansion of the world-class online and distance options operating successfully within our network, and the options and opportunities for you are limitless. Leveraging these properly and well will take time and effort, but Te Pūkenga is committed to investing both to get the right outcomes.
We continue to work closely with industry, including those employers who are already engaged with local campuses and our workplace training divisions, and will involve industry and business associations, iwi, communities and all relevant stakeholders.
One of the leaders of this work is someone you may know: Andrew McSweeney, who led our ServiceIQ industry training division for many years, is now in my senior leadership team as Deputy Chief Executive of Learner and Employer Experience and Attraction.
There are already benefits flowing from the creation of a national network and cross-division groups. One example is the availability, should it suit your business, of free confidential counseling for workplace trainees and apprentices anywhere in the city, helping you look after the wellbeing of your people.
Employers are set to reap more during 2023 and beyond. While ākonga is at the center of all that we do, we know that, for on-the-job training especially, the employer and operation of the workplace are key. This is also recognized by the government.
The change in funding for vocational education has redressed the balance to better support in-work training and apprenticeships, resulting in the ability to increase the support for learners and the capability of staff.
What does this mean for you?
· You will see more proven workplace best practices.
· You will start to see more and better employer-focused innovation in on-the-job training, with appropriate and effective integration of workplace, campus and online options and solutions, including the use of micro credentials and just in time training.
· You will have more support as you upskill employees, whether straight from school or seasoned in a role and ready to take their career to the next level in your business; we have the ability to deliver the training needed to support career pathways for people.
· You will discover that the former polytechnic or industry training people – our Te Pūkenga people – that you already rely on to provide help, expertise and advice, will be able to give you access to more options and solutions than ever before. For example, if you want to get training for office staff as well as kitchen staff, you now have a one-stop shop.
That’s just the start.
As noted, there will be challenges to overcome as we work to achieve our shared vision. We know what many of the challenges are. We also know that there will be some that we didn’t see coming.
In every case, we will be looking for the opportunity – for you, your people, and all those with a stake in vocational education in Aotearoa New Zealand.
Lofty as that might sound, it is grounded in doing what is right and best for all businesses and enterprises across the country – in hospitality and every other sector. After all, without strong employers, there is less demand for talented employees, with an obvious impact on vocational education.
In delivering better value for you, Te Pūkenga will succeed.
Ngā mihi nui ki a koutou katoa.
Peter Winder
Tumuaki | Chief Executive
Te Pūkenga – New Zealand Institute of Skills and Technology
Virtual Reality comes to Christchurch –
Christchurch is to host the 29th ACM Virtual Reality Software and Technology (VRST) symposium in October 2023.
Over 300 delegates are expected for the three-day program at Te Pae Christchurch Convention Centre. The interdisciplinary conference, secured by academic lead Professor Rob Lindeman, Director of University of Canterbury’s HIT Lab NZ will include Virtual Reality (VR) and Human-Computer Interaction (HCI), engineering, science, design, psychology, education, medicine and gaming experts .
ChristchurchNZ Head of Business Events, Megan Crum says the city is a premier business events hub with modern new infrastructure set in an inspirational destination.
“We are delighted to be welcoming international VR software and technology experts to our smart city. They will find a vibrant innovation ecosystem and a wealth of talent and knowledge to share in this beautiful South Island location,” he said.
Ōtautahi Christchurch, home to the University of Canterbury HIT Lab NZ, celebrated 20 years as a world leader in mixed-reality research and development this year.
Professor Lindeman says the conference will allow the Christchurch VRST community to host experts from around the globe, creating a valuable platform for discussion and connection, and an opportunity to showcase their thought leadership globally.
“The HIT Lab NZ focuses on helping support people in carrying out their work and leisure tasks. New Zealand companies and organizations regularly come to us, asking how immersive technologies can help them in providing solutions to real problems. Whether it’s Fire and Emergency (FENZ), SnowSportsNZ, or for-profit companies, our students and staff love working on impactful projects.”
“As well as the HIT Lab NZ, Ōtautahi Christchurch also boasts a strong video game and creative culture, with several independent and medium-sized companies, and an open sharing vibe around embracing the future together,” he says.
“We look forward to sharing knowledge and networking with the international community, who was quick to jump at the chance to come to Christchurch next year. Christchurch ticks all the boxes as a progressive, forward-thinking city, easily accessed through Christchurch International Airport, with the opportunity to explore the region after the event,” he said.
Tourism New Zealand General Manager New Zealand & Business Events, Bjoern Spreitzer says:“This is a great win for New Zealand, bringing high-quality visitors to our shores who will explore Aotearoa and share their expertise and build networks with our local specialists in the growing VR field.”