Sales of restaurants and cafes down

The latest quarterly report from the Restaurant Association of New Zealand reveals that despite annual revenue growth of 2.6% year-on-year, quarterly turnover in the third quarter of 2024 saw a slight decline compared to the same period of last year (0.8%).

Sales at restaurants and cafes fell 2.5% year-on-year, which the Restaurant Association said reflected customers continuing to cut back on discretionary spending.

Catering and takeaway services, meanwhile, recorded growth for the same period of 1.42 percent and 0.3 percent respectively.

Among restaurant association members surveyed, 57 percent reported worse or significantly worse profitability compared to the same period last year.

And 38% of respondents said declining customer numbers remain their biggest challenge.

Conversely, 42% of companies reported profitability equal to or better than the same period last year, and many are optimistic that seasonal demand in the fourth quarter would put them in a stronger position in 2025.

In the regions, Queenstown-Lakes had an exceptional year with growth of 8.64% year-on-year, fueled by strong tourism and events activity.

Meanwhile, Auckland and Wellington, which have faced the closure of a number of popular restaurants and cafes over the past year, saw a slight decline in growth, to 0.9 percent and 1.5 percent respectively.