Takeaways and local eateries are bucking the downward trend as the cost of living crisis causes a big fall in revenue for restaurants.
A report by the Restaurant Association revealed 76 percent of its members had worse or significantly worse profitability compared to the same period last year.
The takeaway sector, however, showed a 4.2 percent increase in year-on-year sales during the second quarter of 2024.
Other businesses to defy the odds were neighbournood eateries with 24 percent of respondents stating income was on par with or up on the previous year.
Annual sales revenue of was $15.7 billion for the year ending March, a 5.8 percent increase on the previous year. The Association said there were ongoing difficulties especially in Auckland where revenue dropped 0.7 percent from the previous quarter.
Restaurant Association chief executive Marisa Bidois said diners in the suburbs which had a strong local connection were finding success by building loyal customers bases that who value the community aspect of eating out locally.
Established eateries with strong brands and businesses with a clear and unique offering were navigating the challenging landscape effectively, Bidois said in a statement.
Restaurants were still facing staffing issues with 59 percent of employers describing it as “difficult or extremely difficult”.
While 78 percent of businesses are fully staffed, recruitment for senior roles also remains difficult.
When it comes to the state of mental health and wellbeing, the industry is also under strain with 54 percent of owners indicating a negative impact on their health, a huge boost from 42 percent in the previous quarter.
Bidois said despite the challenges, the industry remains resilient and determined to navigate the rest of 2024.
“We’ve weathered tough times before, and while the trading environment remains difficult, we are prepared to face these challenges head-on and are focused on surviving until 2025 and beyond.”