Extended lockdown could be “final nail in the coffin” for struggling businesses

Auckland’s move to level 3 restrictions is likely to be extended beyond the initial three days first posited, after a number of new cases have been identified overnight. 

The extension, which is expected to cost Auckland $450 million a week according to Stuff, will be disastrous to the hospitality industry – likely to mark the end for many operators in the sector, according to Hospitality New Zealand.

“In light of Auckland’s move to level three… and the strong likelihood that this lockdown could be extended beyond the three days, bars will have to pour their kegs down the drain and restaurants will be working out what fresh produce can be saved – it’s not as simple as turning the lights off and locking the doors,” said Hospitality New Zealand chief executive Julie White. 

“The industry has already faced significant challenges in continuously adapting their services at each alert level, leaving many operators with reduced profit and increasing debt.”

And without any certainty around when the sector can return to business as usual, hospitality is in dire need of more targeted support.

“The government must provide urgent relief packages and allocate some funding from its $14 billion Covid response and recovery fund to the hospitality sector,” said White. 

While the hospitality sector is in trouble, it is far from the only industry struggling with the sudden shift to lockdown. Workplace advisor Employsure said it has been five months since the country went into “the strongest level of lockdown this country has ever seen”, and business owners shouldn’t forget that.

“Some businesses are only now getting back on their feet,” Employsure senior employment relations advisor Ashlea Maley said.

“Employers should use this as a learning opportunity in the event of another sudden lockdown, to work out what their situation is and how they can overcome it.

“We don’t know if [the lockdown] will extend past the three day cut off point or not, so it’s up to employers to be prepared… It could be the final nail in the coffin for a number of small businesses.”

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