Business still going strong in Hunter despite Covid

Business confidence throughout the Hunter has copped a hit since the first cases of Covid-19 began causing chaos in early 2020. But some business owners refused to give in and have revamped.

Business confidence throughout the Hunter has copped a hit since the first cases of Covid-19 began causing chaos in early 2020. But some business owners refused to give in and bucked the trend by expanding during this unprecedented period.

There is no doubt many sectors of the business community have been decimated by Covid and the lockdowns, outbreaks and restrictions that have come with it. But Business Hunter CEO, Bob Hawes says the perception that everything is doom and gloom can lead to unneeded.

“If some of the opinions that are getting around in the general public were true, then we would be in trouble,” Hawes said. “Even in these tough times, businesses are still transacting. People are still selling businesses and people are buying a business because they see a new horizon, so that’s encouraging.”

Business Hunter CEO Bob Hawes

It’s been a challenging time for businesses and their workers. Grants, training and financial government assistance have helped many get through lockdowns. Some struggled, some survived and others have even flourished.

“There are plenty of businesses in this region through Covid that are going gangbusters, the ones that aren’t exposed. A lot of our manufacturers and the service industries, construction, architects and engineers, they are very busy,” Hawes said.

A different set of problems are being encountered for some that are busy.

The figures show there are fewer people looking for work at a time when businesses are now wanting to recruit.

“We continue to hear from local businesses that they are advertising jobs and getting little and, in some cases, no response. That would be frustrating,” Hawes said.

Hawes added that it’s great the region has contributed to the jobs growth being noted across Australia but he believes the Hunter is still trying to get a ‘jobs recovered’ point before a plan for true expansion of the regional workforce can be looked at.

Many industries that have relied heavily on overseas materials to get the job done have had to re-evaluate their workings. Diversification away from off-shore purchases has been a necessity, as import replacement by sovereign manufacturing took effect in many cases.

“There are lots of examples of small manufacturing business which traditionally have relied on imports who have found people locally who can supply what they only thought they could get from overseas because the order they put in last April is still somewhere on a container ship between here and China,” Hawes said. “Maybe it costs more doing it here but at least they can continue to work.”

Newcastle.

Of course there are many businesses who have had no control over the havoc this unprecedented world event has caused their businesses, and nothing they could do would protect them from some level of impact thrust upon them but Hawes believes there are many opportunities for businesses to thrive and believes while it is important to support those needing assistance, always focusing on the negative impacts will discourage people to go into business and the community will suffer as a result.

Here we shine the spotlight on two Hunter businesses who have refused to allow the global pandemic to slam on the brakes of their endeavours. One, Allogio, did feel the pinch of lockdowns and travel restrictions on their business but pivoted to cater to a need created by the immense changes that have taken place over the past two years.

The other decided to expand their hospitality business despite a growing negative sentiment throughout the community and the small sector in particular.

ALLOGIO

The re-creation of domestic travel habits has played right in the hands of one Hunter business.

Will Creedon is the founder and managing director of short-term rental accommodation management company Alloggio Group and is currently in the north of Queensland looking to acquire more assets for his rapidly expanding business empire.

As travel restrictions ease, Australians are now rediscovering regional areas of the country more than ever, and the company is riding the crest of a wave.

The business’ 13 motels and 1500 plus holiday rental properties saw bookings in October up 25 per cent on the previous year and up 61 per cent from the same period in 2019.

“I’m so happy it started right here in Newcastle,” Creedon said of his business. “I’ve always had big plans for Alloggio and it’s starting to really take shape.”

Alloggio founder and managing director Will Creedon.

Since its founding in 2015, the company’s rise has been noticeable. None more so than the successful IPO raising of $16.5 million dollars, listing on the Australian Stock Exchange on November 29, making it the first holiday accommodation to float on the stock market in Australia.

Only last month, the company acquired ‘Great Ocean Road Holidays’ one of Australia’s largest holiday management businesses for $8 million dollars.

The strategic acquisition expanded Alloggio’s geographical footprint in Victoria and Creedon believes the time to expand has never been better despite the constant worry of Covid-19.

“There’s no doubt Covid isn’t going away for a while. We have to live with it. Not stop living with it. We’re in three states now but the goal is to become a national company with a view of eventually going international.”

When times are tough, entrepreneurs get going and the Irishman did just that. He even looked outside the box when cash flow started to dry up, renting some of his Hunter-based accommodation to Hunter New England Health.

“They used them to house casual close contacts. No other private accommodation business was doing that. That was at least bringing money in. We worked with NSW Police, NSW Ambulance, NSW Disease Control,” he said. “We were amongst the meetings every week, we were doing it for two years and it was only back in July last year that it emerged publicly.”

With years of experience in the hospitality and tourism game, Creedon has never been more focused than on his current project. He says being bold in business can serve people well and having foresight can ensure long-term survival.

“(Covid) has put people into three groups. One group is full of fear. They’re paralysed. They don’t know what to do so they do nothing,” he said. “The next group acts entrepreneurially in an area they think they know, but they’ve never done it themselves and the third group, in the middle of chaos, can still make sense of it, and those people in the last few months have emerged. They’re the people that change cities and people that change countries. They go through the wall.”

TABLE 1 ESPRESSO

George James grew up working in his parent’s fish and chip shop in Adamstown with his two older brothers Peter and Harry. Peeling potatoes to make into chips was a tedious task but it gave him time to ponder his future. The work ethic he acquired from that time meant the hospitality industry was the logical choice.

Table 1 Espresso owner George James

Today James owns and runs the award-winning café Table 1 Espresso in Warners Bay and now Speers Point and loves every bit about his journey which had its ups and downs along the way.

“You really do make lots of mistakes,” James said. “It’s an old clique but you learn from them and it makes you better, whether it be business or personal life.”

The pandemic made the going tough for the 47-year-old. Shutting up shop wasn’t an option and in fact, spawned new ideas. Takes away coffee, muffins, croissants, you name it, whatever it took to keep people coming back, and to have customers knowing their doors would be open in a bad time was important.

“You need to adapt. If you don’t adapt you won’t survive. We needed to keep that same vibe. We created a takeaway window, which was the best thing we’ve ever done. It’s still going strong now. Our sales have tripled.”

Despite the turmoil of navigating the changing of rules through the coronavirus, one would think that the last thing James and his fiancé Samantha want to do is to open up another café. Guess again.

A new offering was secured through a Lake Macquarie Council tender process last year and is now up and running at Speers Point Park. After looking at some locations in the Newcastle area, he decided to keep a new venture close to the mother ship.

“Everything is a risk but the reason why I opened up a new venture is that it had a takeaway option attached to it. Is it a risk? Yes, but it’s a calculated risk. It’s not far away from the Warners Bay shop so if we run out of anything, it’s five minutes away.”

James believes starting a business in the food industry can be daunting but if you can deliver the right product with great service, people will come.

“My dad once said ‘if you have a good product, people will come to you’. I never understood that until I travelled to Russia and visited a restaurant that took three hours to get there. When I arrived they were booked out for three years in advance. It shows that a great location isn’t always the key.”