New Zealanders are eating out more often and ordering more takeaways.
A report from the Restaurant Association showed record sales in the hospitality industry for the year to March, of more than $11 billion - up 3.6 percent.
Dining out in restaurants and cafes accounted for the most sales, with a total of $5.6b.
However, the takeaway or food-to-go sector recorded the highest growth - with sales rising by 5.7 percent to $2.7 billion.
The report showed, that based on eftpos data, grocery sales were continuing to slow, indicating people were eating out more often, replacing meals that may traditionally have been eaten at home.
Consumer spending was highest in Auckland, Wellington and Christchurch, with the three regions having annual sales of more than $1b a year.
Bay of Plenty recorded the highest sales growth overall for the second year running, followed by Auckland.
While more than 2700 new businesses opened during the year, this was offset by closures, meaning 534 new hospitality businesses opened up in the past year nationwide.
The report identified top challenges ahead for the industry as lack of skilled workers, wage costs, and building and maintaining sales.