As Queenstown continues to bounce back from the Covid-19 global pandemic while undergoing an extensive revamp of its main roads, four eateries in its CBD have closed this year.  

The sequential closures of Paddy Gaddy, Taco Medic, Hell Pizza in Searle Lane, and the original Joe’s Garage in the adventure tourism capital all fell within a few weeks.  

It comes as Queenstown Lakes District Council’s Arterial Road Project, an extensive redevelopment of its main thoroughfares intended to ease future congestion for a growing population, creates headaches for residents. 

Queenstown Business Chamber of Commerce chief executive Sharon Fifield said the challenges affecting Queenstown business were the same as elsewhere in New Zealand, including rising input costs and overheads. 

“Costs of labour and supplies are squeezing margins, and in the current cost-of-living environment it is also difficult to raise prices as household budgets are squeezed too,” she said. 

As well as the universal challenges, the roading redevelopments were disruptive, Fifield said, with some businesses reporting this not only made it tough for customer access, but for staff. 

“Access to the CBD has been an issue, with a lot of car parks being removed for the arterial road construction and CBD upgrades with no replacement as yet ... This is an ongoing issue we are seeking solutions from council on,” Fifield said. 

“We keep in touch with our members regularly and the sense is that while it is tough, if they can hang in there and adapt, things are going to get easier. There is still optimism about the future. Our recent business confidence survey results have just been released and show that there is still net positive confidence in individual businesses, and investment.” 

Queenstown Lakes District Mayor Glynn Lewers said the closures were a reflection of what the area had gone through in the past couple of years of the pandemic, though he noted some of the businesses had consolidated elsewhere in the district, as in the case of Joe’s Garage. 

Roadworks in Queenstown as part of a beautification project in 2022. Photo / James Allan 

Speaking to the redevelopment of the arterial roads, Lewers said there was “never a good time for disruptive roadworks”, but was confident that upon completion, access to the CBD would be enhanced. 

“We went through this when we did the beautification and the upgrades of the CBD itself. There was a lot of angst and pressure borne on businesses during that time, but once it was complete, I’ve heard nothing but positive reviews,” he said. 

Roadworks were still on track for completion about mid-2025, he said. 

“We’re trying to remove the work at the main intersection so travellers can have an easier flow down to the CBD and just concentrate on the middle sections of the arterial road. They’re working as best they can, and given the high growth rates that Queenstown experiences and the pressure on the construction industry in general, we’re getting it done.” 

Queenstown was still well above the national average when it came to economic performance, he said. 

“It’s a great place to visit still, and it always will be.” 

On Thursday morning, Transport Minister Simeon Brown announced $250 million of construction upgrades to State Highway 6/6A in Queenstown intended to boost economic growth, reduce congestion, and create a safer and more reliable transport network. 

“With more than 40,000 vehicles passing through each day at peak times, the current SH6/6A Frankton intersection has become incredibly congested and inefficient,” he said. 

“With tourism returning to pre-Covid restriction levels, and continued growth in and around Queenstown, upgrades to this critical intersection will ensure local commuters and visitors can get to where they are going, quickly and safely.” 

Hell Pizza director Callum Davies said the Searle Lane business was for sale and under offer, though the sale was not completed, leading to its closure. 

“As for many businesses, operating in a seasonal tourist destination like Queenstown presents unique challenges; Covid, rising rents, and increasing supply costs have added to these challenges over the last few years,” he said. 

“We’re currently looking for a new franchisee to join Hell. When the time is right, the fires of Hell will burn bright in Queenstown again, in a new location. Until then, we want to thank all our Queenstown customers who’ve supported us since 2006.” 

Attempts to contact Paddy Gaddy and Taco Medic were unsuccessful, Joe’s Garage director Laura Whelan declined to comment when approached by the Herald. 

Ben Tomsett is a multimedia journalist for the New Zealand Herald, based in Dunedin. 

This article was originally published on the NZ Herald here.