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The latest quarterly report from the Restaurant Association of New Zealand has found that despite annual revenue growth revenue dropped in the last quarter.
The report found there was 2.6 percent year-on-year growth, but that quarterly sales revenue in in the third quarter dropped 0.8 percent compared to the same period last year.
Catering services and takeaway both recorded growth year-on-year at 1.42 percent and 0.3 percent respectively.
Sales for restaurants and cafes meanwhile were down 2.5 percent year-on-year, which the Restaurant Association said reflected that customers were still tightening discretionary spending.
Of Restaurant Association members surveyed, 57 percent reported worse or significantly worse profitability compared to the same period last year.
And 38 percent of respondents reported that a downturn in customer numbers continued to be their biggest challenge.
Conversely 42 percent of businesses reported profitability equal to or better than the same period last year, with many optimistic seasonal demand in Q4 would put them in a stronger position in 2025.
In the regions, Queenstown-Lakes had a standout year with 8.64 percent growth year-on-year fuelled by strong tourism and event activity.
Meanwhile Auckland and Wellington which have faced a number of well-known restaurants and cafes closing over the past year meanwhile saw a slight decline in growth, at 0.9 percent and 1.5 percent respectively.
