Businesses in central Auckland have been hit hard by months of construction and roadworks.

Businesses in Auckland’s CBD are doubting their survival, with some saying foot traffic is down 70 per cent due to roadworks and building works.

The Wellesley Street bus corridor upgrade is just the latest project in the city centre, which has been subject to ongoing disruption since the city rail line opened six years ago.

It’s like Famous department store Smith and Caughey And cosmetics giant Sephora announced its withdrawal from Hong Kong.

Currently, Wellesley Street, which intersects with Queen Street, is covered with metal fencing, traffic cones, high-visibility workers and excavated sidewalks.

Remedy Cafe has been operating across from the Civic Theatre since 2010, but with major productions taking place in front of the cafe, owner Rich O’Hanlon wondered if its days were numbered.

“These warning lights have only been out front since April and now it’s a bit of a desperation situation,” he told First.

Cafe revenue has fallen by 40 per cent. The sidewalks, which are usually packed with customers and takeaway windows, have been removed as part of an upgrade to the bus corridor.

Since construction began in April, O’Hanlon has had to restructure operations, laying off two employees and reducing hours for the remaining 10.

The project is expected to take 18 months, which O’Hanlon said was a hard fact to accept.

“We thought we were through it. We thought we were through it, you know, our business was back to pre-COVID levels of business.

“The city looks nice and has a great vibe, but unfortunately in the name of development it has become a building site for the Wellesley Street bus upgrade.”

Across the road from Remedy Cafe is Civic convenience store, which Emran Al Dablan has run for 10 years. The construction has had a severe impact on his business.

“Our sales were down about 60 to 70 percent. We were really struggling and no one was paying attention to us or even talking to us as a responsible person,” he said.

“Honestly, I was already thinking about shutting the business down. I didn’t think anyone would be interested in buying the business because this was going to go on for a while.”

In a joint statement, Auckland Council and Auckland Transport acknowledged the scale of the work had a significant impact on surrounding businesses and said a program including small grants of up to $3000 would be available under the Local Government Act to support businesses.

“We are moving fast to ensure that when (the City Rail Link) opens, the area is completed and free of large public buildings.

“We are planning and sequencing construction work as carefully as possible to minimise the extent and duration of disruption to a particular area and reduce activity during major events and key shopping periods.

“The Wellesley Street construction team is committed to reviewing their construction plans and methods to further minimize the impact and duration of construction outside of these affected businesses wherever possible.”

The council said it would not offer compensation or rates relief in this case because the Local Government (Rates) Act 2002 restricted its ability to change established business rates rates.

Imran said he had not been in contact with the council or Auckland Transport. First He was told about a small $3,000 grant, but he wasn’t convinced it would help.

“Even if they offer $3,000, it’s not even half of my monthly rent.”

O’Hanlon said he’s all for improving the city, but the lack of financial support from business owners is distressing.

“I think if you’ve got a $26.7 million project, and I’m sure these guys are getting a lot of money to do it, and Auckland Transport gets over $2 billion a year in revenue, there’s certainly money out there to help local businesses through this.”

Auckland Council launched its inner city small business support program in May 2023. Remedy Coffee received a grant from the council in 2024, which enabled them to purchase new signage and display it on the metal fences surrounding the roadworks to indicate that the cafe was open.

The commission said further funding would be provided in 2025 and 2026.

But O’Hanlon said that wasn’t enough to make up for his losses.

“I’m not trying to say ‘give us free money’ … but putting up posters is not enough.”

Viv Beck, chief executive of Heart of the City, said she understood the frustration of business owners going through difficult times.

“(The small grants) simply don’t address the financial and other impacts people are facing.

“I understand (the council’s) finances are tight and there are precedent issues, but we have looked out for years at the wellbeing of businesses and we recognise that there is still deep dissatisfaction, for example, with the City Rail Link.

“People are not being treated fairly … they have reason to still feel they are not being properly cared for.”

Baker said the small $3,000 grants are a start, but real action is needed.

“This process will take approximately 18 months. This is an extremely long time for a business trying to survive, especially in an environment where we have multiple projects going on simultaneously.

“So it’s not just one project, it’s multiple projects, the impact of COVID – which has been very, very severe for this area – and on top of that the cost of living, which has affected a lot of people.”

At the Remedy Cafe, Rich O’Hanlon said he was trying to stay positive.

“Is there a light at the end of the tunnel? I hope so, because I’d love to see it. Not because I think it’s going to be exciting. Maybe, maybe not.

“But it will be nice to actually see it once all the cones and fencing are gone.

“The builders are lovely people. They work hard. But will we be able to survive the test of time to see that when the buildings are gone? I don’t know, I really don’t know.”

Auckland Council says once Te Waihorotiu station opens, Wellesley Street will become a major interchange and arrival point for thousands of people catching trains into the city.

The report says the new gateway to the city will bring about a sea change to the arts precinct around the Aotea Centre.