Quarterdeck, one of the Merivale venues in Narooma, was open for extended hours during the Christmas and new year period to meet demand. Photo: Steven Woodburn.
In recent years visitors to Narooma have commented on how few businesses open over the Christmas and new year holiday period.
This year someone posted a complaint on social media about the cost of their meal from a takeaway outlet that was open and paid staff penalty rates.
Do businesses close over that period because they do not have enough staff? Perhaps they cannot afford to pay penalty rates because there is not enough demand?
Some Narooma business owners shared their perspectives with Region on what it is like running a hospitality business amid staff shortages, rising costs, and customers adapting to cost-of-living pressures. All were passionate about providing a good service to locals and visitors alike.
All Merivale’s food and beverage venues were open with extended hours to meet the seasonal demand except Queen Chow which is closed for renovations.
Victor Lopes Costa, Merivale’s venues manager in Narooma, said there was strong demand, with many international and interstate visitors for the first time in years.
“Several people asked artificial intelligence (AI) what to do on the way between Sydney and Melbourne and our venues came up,” Mr Costa said.
He said there was a public holiday surcharge at The Inlet and Quarterdeck, but not at Lynch’s where it was normal trading.
Mr Costa said staff availability was a major challenge, so the extra pay was an incentive for them to work rather than spend their public holidays with friends and family.
He said they only received one or two complaints about the public holiday surcharge.
Merivale’s approach is to be consistent and honest, making it clear there is a public holiday surcharge.
“When visitors come to our venue and pay a surcharge, they expect good service, so we go out of our way to ensure it is a great experience for them. That is our way of dealing with it.”
Narooma Ice Creamery Cafe was as busy as ever at lunchtime on 2 February. Photo: Marion Williams.
Kristy Beecham, owner and manager of the popular Narooma Ice Creamery Cafe, has been in the business for 25 years.
She too opens for extended hours during the whole holiday period, so is stretching her staff. Fortunately, former staff help out, otherwise it would not be possible.
She said she chose to close on Christmas Day because that was her time with her family.
In the past she had opened the cafe on Boxing Day but everyone was arriving in Narooma late that day. Given she would have to pay public holiday rates all day, she decided to remain closed.
She said there was enough demand to pay the penalty rates if only some businesses opened, “but there is not enough demand if everybody opens”.
Chris Westoll ran his passenger service over the Christmas and new year period. He said it was very busy and as a one-man operation, he struggled to meet demand.
“Being the only passenger service in town, you have to give people the service,” Mr Westoll said.
He did not charge penalty rates over the Christmas period, although he did on New Year’s Eve, his busiest day of the year. “People just want to be able to get home.”
There is usually quite a crowd of people outside Narooma Ice Creamery Cafe waiting for their takeaway orders. Photo: Marion Williams.
Malcolm Baddeley runs Mal’s BBQ Boats as a tourism operation, and builds and repairs boats.
He took a different approach.
Rather than increasing his hire rates during the busy season, he reduced the hire rates for the quieter morning period by $20.
“We had people lining up,” Mr Baddeley said. “I am booked out solid every morning before 9 am because $20 is $20 and it gives us more work.”
Having been in business so long, Ms Beecham has seen the hospitality industry become increasingly tough.
“Insurances have doubled, electricity bills are ridiculous, surcharges on all card payments, fuel levies on top of your deliveries, and freight has doubled since COVID,” she said.
Wages have also gone up, meaning higher superannuation contributions and payroll tax.
She said GST was a killer in the industry.
“We pay GST on a few things like packaging, soft drinks and cleaning products, so those are the only things we can claim back,” Ms Beecham said. “Because we are dealing with fresh food and making it into meals, we have to pay GST on all that.”
She said the cafe, which opens 6 am seven days a week, was busy year-round. It is well-supported by locals and by sports clubs passing through knowing the cafe is consistently open early.
“I am lucky to shut my business maybe four days a year – Christmas Day, Boxing Day, and Anzac Day out of respect,” Ms Beecham said.
Mr Westoll said people should not complain about businesses being closed because they do not know the situation. “Sometimes they can’t get staff, or they may be sick.”
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