Wellington’s three Pandoro cafes have announced official closure after 28 years of operation.
A message displayed in the window of the store from director Tony Beazley indicated that it had become increasingly difficult to maintain operations at its three bakeries.
“The economic downturn, customers working from home, the redundancies in the public sector, cycle lanes, and the Wellington City Council are all contributors,” the note stated.
Beazley expressed that it is a sorrowful day for the company as they are forced to lay off over 20 employees across their stores on Willis St., Allan St., and Woodward St.
He mentioned that they had recently attempted to sell the business but were unsuccessful, which ultimately led to the tough decision to close down.
Pandoro Wellington’s closure is part of a broader trend of retail and hospitality businesses struggling in Wellington.
Concord restaurant shut down last weekend. Egmont Eatery announced that it will be finally closing its doors by the end of this month, leaving 15 employees jobless.
Over the past few years, Wellington’s renowned eating and drinking scene has undergone significant changes. Many iconic and high-end eateries have unfortunately been forced to close their doors.
The transition to remote work during the pandemic has led to a decline in foot traffic in the city, coinciding with restaurateurs facing increasing rates and rental costs. Moreover, the Restaurant Association has indicated that the surge in construction activity in the central city has also driven restaurants and cafes to their breaking point.
Wellington branch president Mike Egan shared his thoughts on the situation:
“You would not want to sign a long lease and then suddenly find you have diggers blocking your business for three years,” he said.
“We rely on a great site with foot traffic walking past, and if that suddenly disappears for two or three years because of roadworks, then you’re going to go out of business,” he added.
Business coaching firm Business Changing conducted a survey with 239 businesses and found out that 74% of the participants said the current economy was more challenging for their business than during the COVID years.
Meanwhile, more than 60% stated it was the toughest economic climate they’ve ever experienced while in business operation.
Despite these challenges, Wellington continues to offer a diverse range of dining options. For instance, restaurants like Shanghai Restaurant are highly praised for their quality food and have maintained a loyal customer base over the years. Similarly, The Old Bailey combines a classic Kiwi pub atmosphere with a variety of meal options, catering to both locals and tourists.
The Wellington City Council is also supportive of new food businesses, providing guidance on the necessary permits and licenses required to open a restaurant or café in the city.
