20 Minutes with

PAUL BAKER

GM Vivace Espresso Not to be confused with the famous Italian luxury fashion house, this coffee company’s name pays homage to the home of espresso. Vivace is Italian for ‘lively, vibrant, and spirited’. The name is both a nod to the original coffee houses as places of conversation, debate and creativity, and a reference to coffee flavours and characteristics.

Vivace Espresso’s GM, Paul Baker, has been involved in the hospitality trade for over 25 years, like many in the foodservice and hospitality sectors, he has found this latest lockdown period hard and frustrating. We talked to him about some of the specific issues facing suppliers and distributors during these uncertain COVID times.

“It’s been difficult to plan and to keep everyone’s mental state positive with all the decisions from the Government (understandable due to circumstances) on a weekly and daily basis,” noted Baker.

“For the wholesale distribution, I believe this lockdown could be more detrimental than last year, mainly because we have just been through a tough winter period.”

Baker went on to explain that cafés and hospitality outlet’s financial reserves have been or are near exhaustion and that it will be tough if the bounce back isn’t steady and prolonged, and the international borders aren’t open because unfortunately domestic tourists don’t spend the same.

A feeling shared among many hospitality business owners and managers is one of uncertainty, with Baker agreeing that this year’s lockdown has been far more unpredictable than 2020. There were still lessons that could be learnt from last year, however, and Baker and his team assessed their business model and looked at different revenue streams for opportunities.

“We explored the supermarket route but decided against it as it felt like we would lose control on the quality of our coffee with beans sitting in warehouses longer than the recommended ‘use by date’. We decided to explore the e-commerce route, with a rejuvenated brand / image and website and make it more user friendly for customers.”

The new website was designed to allow Vivace Espresso to develop it into a portal for wholesale customers to use. This is stage two of the development which will be launched in summer.

“Since the last nationwide lockdown and subsequent regional lockdowns, we started to roast smaller batches more frequently, so we aren’t holding as much stock on hand. We are encouraging our customers to do the same, and buy more regularly to manage their stock-on-hand levels.”

The lockdown hasn’t been easy, and Baker is not alone in feeling “huge frustration”.

“Financially the support has been okay, but in the short term the resurgence isn’t going to come back to the numbers it was before the lockdown. There needs to be far more support for months going forward. Maybe not just cash support but tax support packages to allow for the difficult resurgence. Last minute changes and enforcement requirements have just added more stress and financial pressures.”

There has been a lot shared regarding the struggle of cafés, bars, restaurants, and venues, but less has been said about the rest of the hospitality engine - those suppliers, roasters, distributors, and producers behind the scenes who have also been highly affected by the closure of foodservice establishments. Baker is worried about the lack of recognition the run-on affect of closed borders will have on the wider sector.

“The locked borders and the lockdowns of domestic customers have a flow on effect to all wholesale suppliers. New Zealand owned suppliers and producers will be impacted more due to the size of an organisation in comparison to international companies and it’s going to be tough to compete. The café owner may be inclined to take the lower quality and price to try and survive - at what cost though? The end consumer is smart and will quickly wise up to this.”

Baker’s advice to hospitality businesses is to try to minimise extra costs where possible and to try and have a positive mindset by looking ahead as spring and summer are just around the corner.

“Look at your business model, work out when people are coming in and measure the return vs cost per hour - it may be wise to limit the hours and minimise staffing levels initially once we are out of lockdown. Look at the cost of staffing before you reopen and consider managing the hourly cost by mixing up the menu so some duties can be done by less skilled workers who can also multi-task and do other duties - think of the American model of a busboy and server mentality.”

Unfortunately, some cafés simply won’t reopen.

“I feel the New Zealand café model will change. Service will be paramount, but staff will be expected to work faster and more efficiently for the higher wage. Business owners need to offer more for experienced and efficient staff,” suggested Baker.

“In Australia it is common to have less staff on for a busier café, but they get paid more and can manage the expected hourly revenue flow in relation to staffing costs. In general, costs have increased for hospitality operators over the past six months with an increase in diary prices, electricity, and staffing to name a few. I feel café operators need to be realistic in their price points - people will pay more for quality and value so don’t scrimp on the quality both on the plate, cup, and the service.”

Baker would really like to see the government recognise the hospitality industry as an essential service, with vaccinations pushed to our front of house staff so the Alert Levels weren’t so detrimental to the industry.

“Changes are going to have to be made, we just need to be open and ready for change. We need the government to talk to the industry, not just one or two people but communicate to us on the front line. Honest discussions need to be had around opening borders for workers and about tax relief whilst borders are closed,” Baker concluded.

“Cafés need to remember we are in the business of offering a release and enjoyment, we can’t be fixated on what has happened, but on how to move forward.”