You TubeFacebookTwitterflickrGoogle plus
Monday, 20 May 2019 10:41 pm

High food prices push restaurants to deliver

Sep 24th, 2009 | By | Category: Front Page Layout, Latest News, News

Reka Cafe Barista Kath Reedy: cheap and cheerful fare has keept business strong

Reka Cafe Barista Kath Reedy: cheap and cheerful fare has keept business strong

A HUTT  restaurateur says a “survival of the fittest” attitude has seen his restaurant right during the recession, despite continuing rises in the cost of food.

Figures from Statistics New Zealand released earlier this month show the cost of food increased 4.6% in the year to August 2009, following a 10.6% rise for the year to August 2008.

One of the groups contributing to the rise is restaurant meals and ready-to-eat food, which Statistics NZ says are up 3.7% in 2009, after only a 0.5% rise in the year to August 2008.

But James Hutton, owner of Café Reka in Lower Hutt, says the key to surviving is to keep customers coming back by absorbing the growing cost of groceries and produce rather than passing them on in higher prices.

A “recession friendly menu” with nothing over $30 and promotional events combined with buying direct from growers, using more seasonal produce and pruning back staff hours have kept his business strong.

Statistics for the month of August suggest a slowing in the rate of increase in the Food Price Index, with the cost of fruit and vegetables dropping 3.3% compared to a 0.6% rise in July and a 2.8% rise in June.

But Selina Sok, owner of Buzz Restaurant and Cafe on Waterloo Rd, says she has also lowered her prices despite not seeing a reduction in her overall weekly bills.

“It’s too soon. Suppliers probably don’t want to drop it down just yet, to have to put it back up later,” she says.

She noticed a dip in price of avocados, however, which Statistics NZ says dropped by 25%, down from $3 or $4 per avocado in July to $1 in her last bill.

Ms Sok, whose restaurant uses an average of 30 avocados a week in their Kiwi Cafe style fare, says the cheaper price has been helpful.

Tags: , , , , , , , , , , , , , , , , , , , , , , ,

is is a former Whitireia Journalism student.
Email this author | All posts by

Leave Comment

You must be logged in to post a comment.

Radio News