Local food delivery company struggling against competition
Getting food delivered to the door has become a huge business, and in one New Zealand town the competition between two operators has led to complaints to the Commerce Commission. Nelson's Yummi food delivery business launched a decade ago but in recent years it has struggled. Two years ago another Kiwi-owned nationwide company, DeliverEasy, Yummi began losing clients. Yummi founder George Evans spoke to Melissa Chan-Green.
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NZ Herald
2 days ago
- NZ Herald
Government should cut GST on food if it's worried about butter price – Fran O'Sullivan
The Finance Minister did not need to call Hurrell in to reaffirm that global dairy prices are at a high and that this would inevitably spill over to higher farmer returns and, in turn, boost regional and finally national economies. (That's the plus side you didn't hear about before the meeting). Or that any notion of Fonterra slashing its own margins was not going to happen. They are thin when compared with the margins applied by supermarkets to dairy products, and she knows it. The upshot is that Willis did seek explanations from Hurrell over the co-operative's pricing, which she of course accepted. Within days, she was talking up Fonterra and the surging global prices on the Mike Hosking show as a plus – as indeed they are when it comes to the impact on the New Zealand economy. Hurrell subsequently made it clear his company is not moving to a two-tiered pricing system: an export price geared to global prices and a subsidised price for domestic consumers. There was more besides. It was sensible for Fonterra to shut the issue down quickly. It currently has its consumer brands business on the market. Any suggestion of a move to a two-tiered system would be a complication to that sales process or indeed an IPO of that business if that ultimately turns out to be the Fonterra board's preferred option. But while there was an element of the performative to the Beehive shenanigans, it does underline how much 'cost of living' issues are a lightning rod when it comes to sparking domestic dissatisfaction with the Government. Willis later described her meeting with Hurrell as 'constructive and engaging', underlining the fact that Fonterra does not control retail prices and that the final price is set by supermarkets, whose contracts and pricing strategies vary. This was more grist to Willis' campaign against what she claims are supermarkets profiteering at the expense of consumers. Already, she has been working to reduce the barriers to entry for other competitors. Willis has been encouraged that the Commerce Commission has taken a case against grocery giant Foodstuffs North Island and Gilmours Wholesale to court over what it believes is cartel conduct. The regulator said civil proceedings would be filed against the big grocery suppliers under the Commerce Act and Grocery Industry Competition Act (GICA). Foodstuffs 'strongly denies' any unlawful conduct. The Commerce Commission has also levelled criminal charges against retailer Noel Leeming over what it claims is a misleading price-matching promotion. The company 'firmly' maintains it had not committed an offence and would vigorously defend itself against multiple charges of misleading customers under the Fair Trading Act. Put that to one side. Prices have escalated on multiple fronts: dairy products, meat and some fruits; electricity and gas, rates, insurances. But they have decreased on others: mortgage and loan interest rates, and some fuels. There is little point in trying to jawbone prices down. In many respects, the answer lies with Willis. If she is overly concerned, she could wipe the 15% GST from particular food items. This is the case in Australia, where its 10% GST does not apply to meat, fish, produce, cheese and eggs, plain milk and cream, bread, butter and other spreads, bottled water, tea and coffee, cooking ingredients and oils, or infant formula. In Britain, most foods are zero-rated. Many European countries have reduced value-added tax rates for food, typically running at 5%-7%. Basic foods are exempted in Singapore, there is an 8% rate in Japan, and in the United States some states exempt various food items from sales tax. The upshot is that New Zealand verges on being an outlier in this area. Any changes to the GST regime would, however, have an impact on how New Zealand's tax regime is perceived as being neutral. Farmers are not the enemy. There is much to celebrate from our rural sector, which will deliver nearly $60 billion in export earnings this year. The fixation on rising prices has also overly consumed the Prime Minister, who frequently talks about 'cost of living issues'. But this is not going to be solved in the medium term. The upshot is that, short of any intervention by the Government, consumers will just have to suck it up.
Otago Daily Times
2 days ago
- Otago Daily Times
Customer service manager's focus
New Ascot Hotel executive manager Oytun Cevik at the hotel. PHOTO: TONI MCDONALD Ascot Hotel's new executive manager Oytun Cevik is no stranger to making beds or carrying luggage. However, the industry was much more than making beds, he said. Developing a great customer experience should be the industry's end goal. "You have to put yourself in the guest's shoes." Being greeted with a smile and staff building a rapport with customers as soon as they walked through the door was key. The diversity of hospitality required flexibility to its demands, Mr Cevik said. Besides the nation's attractive scenery, he believed New Zealand had a unique hospitality culture that was attractive to international visitors. "I think Kiwi hospitality is something that you really need to come and experience ... It's definitely down to earth. Friendliness and welcoming, that's what brings people back." Capturing repeat business was core to the industry's survival, he said. After graduating in Turkey with honours in tourism and management, he moved to the United States to work in the housekeeping department at the 1415ha, 300-room Chateau Elan Winery and Resort in Georgia. His New Zealand industry experience started in Queenstown where he met his future wife, Southland-born Emma. Industry doors continued to open to the couple and their two daughters, Ruby, 9, and Scarlet, 12 — offering new opportunities on the hospitality management ladder which led to his Ascot Park Hotel executive manager role. He always believed a move back to the South Island would be part of their future where they would be closer to family, he said. He had done the hard yards in housekeeping, front office, food and beverage service and accounts. "You don't become a GM [general manager] for a hotel overnight — you have to start from scratch." While he was no micro-manager, he was still happy to pitch in and make beds and clean bathrooms if it was required. 'Being a GM is not something that you always do from behind the desk. You have to be really ready with multiple hats throughout the day ... you have to be really flexible with what you do around the hotel. "It's hospitality — wherever it's required, you need to step in and do it with the team." Meeting people from different cultures and backgrounds was a part of the industry he particularly enjoyed. "It's embedded into Ascot Hotel ... that's what I love about coming to work every day and sharing things with my team and what they're achieving every day." Invercargill Licensing Trust (ILT) chief executive Chris Ramsay said Mr Cevik's record of success across all his previous positions had the ILT executive team excited for the future of the Ascot Park Hotel. The role was a highly contested position which attracted international interest from a range of highly skilled and experienced hotel managers, he said. "Oytun stood out throughout the process, having built a career in hotels that started in America at the Chateau Elan Winery and Resort Atlanta and has included major hotel brands across New Zealand." - By Toni McDonald
RNZ News
3 days ago
- RNZ News
Local food delivery company struggling against competition
business food 36 minutes ago Getting food delivered to the door has become a huge business, and in one New Zealand town the competition between two operators has led to complaints to the Commerce Commission. Nelson's Yummi food delivery business launched a decade ago but in recent years it has struggled. Two years ago another Kiwi-owned nationwide company, DeliverEasy, Yummi began losing clients. Yummi founder George Evans spoke to Melissa Chan-Green.
