You TubeFacebookTwitterflickrGoogle plus
Wednesday, 20 March 2019 07:05 pm

Coffee saves the day as hospitality marks time

May 5th, 2011 | By | Category: Front Page Layout, Latest News, News

SMALL LUXURY: People are moving towards swapping major spending for treats like coffee and a biscuit.

MORE people are doing their eating out at home to save money, although the “lipstick effect” may be easing the pain for the hospitality industry.

Central city cafe Smith the Grocer is one outlet noticing an increase in small luxuries like coffee, as bigger spending on meals declines 

“We have definitely had an increase in coffee sales, and that’s due to us doing more takeaway sales in coffee now,” says Maria di Mattina, who manages inner-city cafe Smith the Grocer.

A new crop of regular customers who only buy takeout coffee has meant Smith the Grocer is hardly feeling the recession, even though sales of meals and alcohol have remained relatively static.

“We’re still doing a good product- it’s gotten busier for us personally.”

Food and beverage services experienced a modest increase of 1.3 percent in sales for the December 2010 quarter.

In comparison supermarket and grocery stores recorded the second-largest growth in the retail trade- up 1.9 percent and 2.4 percent, respectively.

Supermarket and grocery stores are one of the biggest sectors in retail and account for a quarter of annual sales.

Miss di Mattina’s father, Dominic di Mattina, owns Whitby Seafood which has also seen a period of growth.

“As soon as people started getting scared about the recession, our fish and chip shop got a lot busier too,” she says.

Bars, cafes,  restaurants, accommodation and takeaway outlets maintained some growth last year despite the recession.

The hospitality industry’s biggest competition is from the take-home market, says Jeremy Smith, president of Wellington’s Hospitality Association branch.

“There is a renewed interest in cooking at home, with cooking shows and such,” Mr Smith says.

“These days, if people want to do something fancier, they tend to go to the supermarket and entertain at home.”

Hospitality, consumables and apparel still earned more transactions during October 2010 than at that time last year, while the overall retail economy remained flat.

The hospitality industry’s growth fluctuated considerably during 2010, but ended up achieving an average of 6.2 percent improvement over 2009.

Growth has been more stable during this last six months, averaging out at 4.7 percent.

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

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

Leave Comment

You must be logged in to post a comment.

Radio News