Cuba Street in 2024. Photo: Vera Craig
Wellington businesses say rising rents, rising food prices and parking costs are robbing the CBD of its vitality, leaving customers scarce and businesses struggling.
They say since the COVID-19 outbreak, the atmosphere has become bad, the area is no longer as safe as it once was and more people are choosing to stay away.
Cuba Street has long been known as the vibrant heart of Wellington CBD, bustling with locals and tourists visiting local cafes, shops and bars.
But Ainsley Robinson, manager of Olive, a café and restaurant on Cuba Street, told Checkpoint that the street has changed and has been particularly deserted in recent months, forcing cafes to increase prices and cut staff hours.
“I've been working here for a few years now and when I started it was always busy and now it's like this. Obviously things have calmed down a lot and the streets aren't as busy anymore.”
The cafe usually gets reservations for around 70 people, but in recent months the maximum number of reservations has been 20.
She said with the current high cost of living, people can't afford to go out.
“We've had to cut everyone's hours and we can't afford to go out,” she said. “It's kind of a vicious circle now, because we don't have as many customers, we have to raise the prices of food, which also reduces footfall.”
Olive recently hired more part-time staff because it couldn't afford to allocate multiple employees to full-time shifts.
“It really puts a damper on regulars when they raise prices a little bit. It's crazy that a takeaway mocha is $8, but that's the same everywhere.”
Ainsley Robinson. Photo: Vera Craig
Tisha Grandy, manager of another cafe, Fidel's, on Cuba Street, said the introduction of the Super Gold Card and student discounts had boosted foot traffic but the business was still struggling.
“Everything is more expensive and compared to a lot of the shops down the street we're probably doing okay, but the reality is, when you look at the spreadsheets and stuff, we're just barely staying open.”
She said high parking costs and poor transport links meant getting to the city centre was out of reach for many, and that Wellington had completely changed since she first moved there 10 years ago.
“When things feel really tough, everyone wants to come to the city centre. There used to be free Wi-Fi everywhere,” she said.
“The CBD used to be a really accessible place where people could just hang out if they didn't have a reason to be here. Now people don't come into town unless they have a reason, and that's a real shame.”
Grace Smith, manager of Paper Bag Princess, a second-hand clothing store on Cuba Street, said the CBD was deserted during the day, with many shops closed.
“It really breaks my heart. You walk down Cuba Street and there used to be Everyday Wines and Carly Harris and a few other stores along Cuba Street,” she said.
“They weren't the kind of stores I'd go to, but I used to see them every day on my way to work, and now they're all closed.”
Fidel's on Cuba Street. Photo: Roger Young
Recently, Pandro Bakery, which owned three cafes in the Wellington CBD, announced it would close all of its Wellington cafes after 28 years in business, causing over 20 staff to lose their jobs.
Popular cafe Egmont Street Eatery and florist Yvette Edwards also recently closed.
Smith said safety could also be a factor in keeping people away from the CBD: While she felt safe in the CBD, she has noticed changes, but isn't sure if others feel the same way.
“You just have to be a little more careful in your daily life. It's not like you're going to get attacked or anything like that, it's just different.”
Wellington Chamber of Commerce chief executive Simon Arcus said people working from home, the cost of living and interest rates were contributing to businesses' struggles.
He said businesses in distress should speak up and ask the chamber for help.
He said he wanted the council to put together a compensation package, including rent relief, for businesses affected by construction works in the city.
