Parnell businesses forced to adjust as work patterns and spending habits shift

Parnell’s busy and vibrant hospitality scene is no longer what it used to be as businesses are forced to adapt to the constant changes in work patterns among office workers.

While customers tighten down on spending, businesses in Parnell are struggling with increased rent, wages, and supply costs.

Some have reduced their hours or closed on quieter days, particularly at the start and end of the week when there is less foot traffic.

At BurgerFuel Parnell, those changes have been significant.

BurgerFuel Parnell franchisee Mark Hughes says working from home has reshaped his business.

“We haven’t seen a massive decrease in foot traffic, but the peaks have definitely shifted.

“The traditional weekday rush just isn’t as strong as it used to be,” he said.

Instead, demand has become less predictable, with busy periods now being mid-week and quieter periods at the start and end of the week.

General manager of the Parnell Business Association Adriana Avendano Christie said this pattern is consistent across the suburb.

“The ‘Tuesday-Wednesday-Thursday’ office model is very real here. Monday and Friday foot traffic from workers has dropped significantly.”

While overall foot traffic has remained relatively steady, its makeup has changed.

“Foot traffic during the traditional 9-to-5 weekday has flattened, but local resident traffic has increased,” said Christie.

For hospitality businesses, that shift has meant rethinking how they operate.

“Businesses that relied purely on the office lunch crowd have had to pivot to evening dining or weekend ‘destination’ experiences to survive.”

Hughes said the change has altered the rhythm of the business.

“We don’t have the same corporate lunch rush anymore.

“You see more people coming in at different times of the day rather than that big lunchtime spike,” he said.

At the same time, rising costs are influencing customer behaviour.

Parnell office worker Louis Taylor, who works from home two days a week, said he rarely buys lunch while in the office due to how expensive it. is.

“I can make meals at home to last me a week for cheaper than what it could cost to buy one meal out.

“If I do want to buy lunch, there are many cheaper options where I live, like bakeries, that I wouldn’t otherwise visit if I was at work,” he said.

Chief Executive of Hospitality New Zealand Kristy Phillips said the shift working patterns and spending is being felt across the country.

“Foot traffic drives a significant portion of sales for hospitality businesses.

“With the rise in people working from home, many hospitality businesses have felt the pinch,” she said.

While there has been a gradual return to offices, she said trading patterns have changed permanently.

“There has been a steady return to the office, and with that, some hospitality trade has improved, but on different days of the week.”

Despite the challenges, the suburb is evolving.

Parnell is shifting away from its identity as a weekday business hub toward what the association describes as a more “premium village,” supported by residents and destination visitors.

To support this transition, the Parnell Business Association is focusing on events, retail experiences, and attracting visitors from across Auckland.

“Businesses have to work much harder to attract people now,” Christie said.

For hospitality operators like BurgerFuel, adapting to that shift has become essential.

“You can’t rely on the same patterns anymore.

“You have to adjust to how people are living and spending now,” said Hughes.

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