Struggles to get eggs, CO2 and staff are stretching hospitality businesses in the Waikato and beyond.

Prince Albert The Olde English Pub & Restaurant owner Gaurav Sehgal says he cannot even sell his Cambridge business because no one is ready to buy in a high interest rates market.

'I don't want to make any profit, but I don't expect to sell the business for less than what I bought it for.”

He's felt the pinch of supply shortages and price increases for the past two to three months.

'There's a shortage of CO2, eggs, potatoes... you name it and there's a shortage.”

With New Zealand's only domestic producer of carbon dioxide shut, Sehgal's waiting a week – instead of a day - for the gas.

'If we don't have CO2 supply, we cannot sell tap beer, the highest-selling product at the pub.

And beer prices have already gone up twice in the last six months by 15-20%, he says.

Food costs were also increasing – chicken tenders had gone from $9 to $22 per kg since he had to change suppliers, and a box of oil had gone up $30.

While he was seeing more customers, including international tourists, he worried what he'd serve them.

At The Sconery in Hamilton, owner Maria Senear is counting her lucky stars she has a reliable egg supplier, given she can use 1000-2000 a week.

'We use 16 eggs every morning just on one set of brioche.”

Senear's expecting shortages in flour soon, saying she's already shopping between suppliers.

A reliable egg supplier has been a godsend for The Sconery in Hamilton. Pictured is owner Maria Senear. Photo: Mark Taylor/Stuff.

There's been an 'unreal” price increase in the past couple of months, she says – up 50% to $1.50 a kg.

The restaurant adopted a new menu, dropping half the items, last month to be mindful of prices and wastage.

'We have moved it to the cabinet and this way we are more reliant on it than the menu.”

Over at The Cook Bar in Hamilton East, owner Chris Rollitt says beer makes up 80% of drink sales and a shortage of CO2 could be huge problem.

'Our business is 50-50 reliant on food and beverage respectively.”

Rollitt, who is also Hospitality NZ Waikato president, says there were supply shortage issues everywhere in hospitality.

Hospitality is facing 'a real rosy picture” including labour shortages, supply issues and a recession, says The Cook owner and Hospitality NZ Waikato president Chris Rollitt. Photo: Mark Taylor/Stuff.

'It is hard to fathom at times that we live in such a bountiful country, we can't get fish or eggs.

'The boats couldn't get out because the weather was too bad. The market is so volatile at the moment. A lot of the fresh vegetables has been weather impacted.

'There is certainly a lack of infrastructure planning from the central government.”

And business had a lot on the horizon – supply chain issues, labour market shortage, cost of finance issue, and then the recession.

'Good times, real rosy picture.”

And the borders re-opening hadn't helped with the shortage of skilled labour, with all Rollitt's recruits being 'young people starting out or studying”.

It'll take about five years to get the labour market back to where it was pre-Covid, he says.

But it's the first unrestricted Christmas period since Covid-19 hit and 'doors are open, we are trading, we are happy with that”.

Rollitt says people were adapting to budgeting for price rises, for example skipping dessert, sharing plates, or having one fewer drink.

We have had to adjust our thinking on our offering on how we can accommodate for people to make choices around how much they can spend.”

- Avina Vidyadharan/Stuff.