Pandoro is one of a number of Wellington businesses which is shutting up shop for good. Photo: RNZ / Kate Green
A hospitality group says Wellington businesses are suffering from the effects of a decline in foot traffic, and customers with less money to spend.
Pandoro's three Wellington stores closed on Friday becoming the latest in a string of closures of both hospitality and retail venues in the capital.
There have been more than 6500 job cuts announced among government agencies in line with government orders to downsize.
On Wednesday, Egmont Street Eatery announced it would be closing its doors at the end of September, after nine years in business, saying the current economic climate had created huge challenges and changes to its business.
Meanwhile, Wellington florist Yvette Edwards is also closing after seven years on Tory Street.
Hospitality New Zealand spokesperson Sam MacKinnon said some businesses were finding it very tough right now.
"Probably the lack of certainty at the moment that is really really getting to people, I think it's a question around when's the light at the end of the tunnel.
"I think during that Covid period there was a sense that we're all in it together and now it kind of feels a little bit different in terms of that trading environment."
But some hospitality venues had been able to lean on their regulars, he said.
"I know of venues that have built a really strong focus in community around their offering whether that's through pub quizzes or discounts if you're buying pastry with your coffee or whatever the case may be and those guys tend to be doing okay."
MacKinnon said other businesses, many reliant on foot traffic, had told him it had been tougher lately than during the Covid pandemic.
The economic downturn and government job cuts had curbed spending, but a change was in sight, he said.
"We're starting to see some of those green shoots come through with OCR [official cash rate] cuts and heading into summer and hopefully a number of households having their interest rates drop that will lead through to being able to spend a bit more money out in the community and in hospitality venues."
MacKinnon said there were still tough times to get through, and his advice to businesses was to ask for help early.