New Zealand's capital is facing a hospitality crisis as the fuel shortage drives away diners and increases the cost of produce, with one restaurant reporting selling a single meal during an entire evening service.
The economic damage beyond just transport is becoming clear, Stuff reports, as Wellington businesses face both reduced foot traffic and soaring costs for ingredients that must be trucked into the city.
This is the real economic cost of the fuel crisis that gets missed in the headlines about petrol queues. Small businesses are getting hammered.
The fuel shortage has hit Wellington particularly hard due to the city's limited refining infrastructure and dependence on trucked supplies. When fuel gets scarce and expensive, people stop driving into the city for discretionary activities like dining out. At the same time, restaurants face higher costs for produce, seafood, and other ingredients.
One restaurant owner told Stuff they sold exactly one meal during an entire Friday night service - traditionally one of the busiest shifts of the week. The kitchen was staffed, ingredients prepared, tables set. One customer showed up.
That's not sustainable. Even with reduced operating hours and skeleton staffing, restaurants have fixed costs: rent, insurance, minimum staffing levels. When revenue drops to near zero, businesses close permanently.
Wellington's hospitality sector was already struggling before the fuel crisis. The city's central business district has faced declining foot traffic as more people work from home. Commercial rents remain high even as vacancy rates climb. The fuel crisis is pushing already-marginal businesses over the edge.
The government in Wellington has announced emergency fuel supplies and expedited shipping, but that doesn't help restaurants that have already lost weeks of revenue. Many won't survive long enough to benefit from improved supply.
This shows how vulnerable New Zealand's economy is to fuel disruptions. The country imports all its refined petroleum products after closing its only refinery. When global supply chains hiccup, feels it immediately.
