13/11/2022
Dear friends of Zeps.
Thank you. Thank you. Thank you.
This post delivers news that will be sudden.
It should be no surprise that the journey for all small businesses has recently been tumultuous. Zeps has been no exception to that.
In November 2021, I decided to sell Zeps. Circumstances purely influenced it. Just as we were gathering composure from bringing an already wounded business through the Pandemic, in an industry hit the worst, The ‘three-day lockdown’ knocked the wind out of us. Being knocked down and getting back up was something I have upskilled in since 2018. I believe I have done a good job instilling the same resilience in my team.
In a rural community teaming up is hard!
Our employment pool doesn’t come close to that of densely populated areas.
We show as much recognition as possible to those willing to go the distance. It has always been an additional yet essential pinch in our pocket. Quality comes at a cost. We have been very fortunate, both past and present, to have many outstanding employees represent their value, and there is no hesitation to honour that worth. The downside of that, however, increases our position on the State Payroll Tax threshold, a tax of 4% that adds to the good deed of providing stable jobs. Due to being a remote business that pays more to acquire and retain employees, we become excruciatingly exposed to this tax. It is a nemesis to small businesses!
Recognising core problems at Zeps in 2018 and strengthening the foundation (that fully enhanced the customer experience) resulted in an $80K+ payroll tax bill – that I am still paying! It also meant I had to deeply manage any ongoing recruitment to avoid growing this debt. Hence a roller coaster ride of up and down employment, even at times having to close shifts rather than up staffing at risk of the tax and growing further debt against debt (Seriously! WTF?) Under my leadership (2018), Zeps has always sat within an inch of the threshold! Inevitably when the third pay increase for the year in hospo was announced in November ’21 (and supported by us!), it tipped us over the threshold that we had ungraciously balanced. I had no desire to fight the system any longer.
In December, I found out I was not able to sell my business, and an interested party was awaiting entry anytime between then and my lease expiry in 2024.
On the very turn of the New Year, again, circumstances almost brought Zeps to a close (and many other Tasmanian businesses). If not for the overwhelming love felt from our supporters, I would have admitted defeat. It was a kick when we were already down. (There is no blame for this. At some point, our borders had to open. I sure understand the intense pressure and adaption bringing a business through a pandemic, let alone an entire state.) The responses that flooded in from our audience were unimaginable! You people loved us – even when we’ve been at our worst. Even when we could barely perform or keep our standards up – you still cheered us on. Our customer base is our heart! We know it, which is 100% why the business started 22 years ago. This cheer gave me the will to fight on – unknown that we would be walking into worse. I sold two properties to clear accumulated survival debts (however, they too went pear-shaped!), and on the ground, Covid tore staffing to pieces, and equipment breakdown seemed to be experiencing a viral effect too! So much so that we are now deemed ‘uninsurable’!!
We sit in a catch-22 position. A position that affects me, my team, my community, and my customer base. The four pillars that have played no part in the ill position of the business.
Anyway! We have forged ahead blow after blow. Most recently, we have experienced inflation. Like everyone. But is the answer really ‘pass it on to the customer’? I might be a black sheep, but I f’ing hate this ‘handball the problem’ solution – it is not a solution!
Last month to accommodate further staff shortage, we had to alter our menu, make adjustments to reduce prep time, and increase our prices to keep our one last fist out of the water. Not one part of me felt good about this. I owe it to my incredible team and the core people who have been towers of support and give their best every damn day to keep that one last ember aglow. They are pure gold-hearted heroes.
Has it been enough? No.
These are only the apparent challenges that I can mention. We have been riddled with them. Over four years, we have condensed mammoth hurdles, and now we have only a few to concur – But the most conscious thought is always – Which straw will break the Camel’s back?
The time has come to make serious decisions. I have crossed every bridge to be heard. I know people in key positions are aware of our situation. But, unfortunately, it appears that when dealing with the government, the response time is only considered ‘urgent’ when they are awaiting yours.
In a small-town, where we lack in numbers, we rise in thick-skinned strength. Thankfully.
This time last week, I had started looking into the liquidation process. It was the most freedom I have felt in four years. I have prepared my team for it over months; they were my biggest concern. However, it has got to the point that they are here for me now, rather than me being here for them (supporting a healthy mind, body, and soul hospo workplace). We have been making far too many sacrifices directing us away from our good intentions. And it feels like s**t. This is no way to do business. We are showing up under challenging circumstances to pay debt and avoid to further. And it is soul-sucking to operate this way when we know we are so so so much better!
I did a meditation on Monday and came out freshly optimistic.
I may have one last knock left in me.
We don’t deserve this loss. If we are going down, it won’t be without one last hoorah and the truth behind our hardship (respectfully)
To lose Zeps fully would be devasting. I have put up all that I possibly can to save it. Unfortunately, it is out of my control. I do know though, that I can drive a good half business back to shining glory and provide amazingly good food, the most welcoming service, and a memorable experience that was intended all along. We can commit as far as fithe open road takes us into the end of our lease in Jul 2024. And then come what may…
With no option other than to drop a bomb. Tonight was the end of 22 years of evenings at Zeps.
From here, we take a massive pivot (we are used to it), but it will depend on many factors, and who knows how far we will make it. But I am quite the optimist (My core team is the definition of optimistic! Boom!)
As of Monday, November 14th, Zeps new trading hours with be Monday – Sunday, 8am – 3pm.
We anticipate this most significant pivot will take some teething, and we will be ever so grateful for your support and patience as we transform.
I understand the shock and loss this will bring and will make an attempt to soften the end of the iconic Zeps pizzas – for the following two weeks, we will trade evenings for T/A Pizza only. This will be entirely subject to staffing, and we will provide Facebook confirmation daily for this period.
Day trade only will mean that we can utilise our evening kitchen staff to recover our ever so missed breakfasts. All going well; this will commence Monday, 21st November, as our team sharpens their skills this week.
As each day progresses, we will restore goodness and draw closer to what we once were.
I will keep you all informed through our transformation.
It is surreal to believe we are almost at the end of the year! It has honestly been a long stretch of a blur! But to get over it, you can only go through it.
Please understand that this is not a post for sympathy – I feel confident that regardless of our final outcome, the existing Zeps team will be okay. The universe takes good care of its good people. My message is to raise awareness of dying out of genuine good practice. Not Zeps alone, but goodwill in general – red tape and expectations are making way for greed. No one will benefit if the axis doesn’t turn. Rethink your time, slow down, and relax. Life is only a hurry because we have been given the convenience and temptation. The power is within every choice to change it.
If you have read this far! Mate. Thank you. From the bottom of my heart. For the past, the present & the future.
Hayley x
*We will be in touch if you have an upcoming evening booking or evening meeting.
*To David & Irene – our most beloved supporters over twenty-odd years. To you both, we are most sorry. I love you dearly.
