Here’s why delivery could help save the hospitality industry
Sunday, 17 May 2026
Wellington’s Lucky Chicken is a cult-favourite, lauded for its fried chicken and burgers, but it is delivery that allows it to be more nimble when navigating tough times, the eatery’s spokesperson says.
Lucky Chicken has just one physical premises, on Courtney Place in the city centre, and its operations manager Tom Sargent says that means accessibility is key to success - especially in the current climate.
“Getting into the heart of the city can be a bit of a mission, especially at busy times, and sometimes people just want a meal quickly. Delivery gives more people access to our food, and that helps us.
“Delivery makes what we do more convenient for customers, and it has broadened our customer base, covering the gaps we just can't fill ourselves.”
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Recent years have been challenging, with first Covid, then the economic downturn, and now rising prices, so any way to drum up extra business is welcome, he says.
“In person traffic is down but delivery is consistent, and it has helped us keep revenue coming in. And we work solely with Delivereasy as it’s owned by local people who understand the environment we’re operating in.”
Working with a local platform gives him confidence in Wellington’s wider hospitality scene and the connections between businesses, while delivery offers the flexibility needed to survive, Sargent says.
Lucky Chicken is far from alone in facing tough times. There’s been a spate of high profile restaurant and bar closures this year, particularly in Wellington and Auckland.
The hospitality sector accounts for the second highest number of company liquidations, according to the latest Centrix data. It shows that over the year to March, the sector saw 399 liquidations, an increase of 49% on the previous year.
But the industry has continued to grow, with the Restaurant Association’s most recent Hospitality Report showing sales reaching $15.99 billion over the year to June 2025, the highest on record.
Within the total, it was the takeaway sector - delivery and pick-up - that turned in the strongest performance with a 3.2% increase, equating to $136.7million from a total of $4.4b in sales.
The increase suggests that embracing delivery could be a good option for eateries wanting to weather difficult times and protect the bottom line.
Restaurant Association chief executive Nicola Waldren says delivery took off during Covid and since then third party delivery platforms have embedded themselves in peoples’ lives.
Now, with all the pressures on peoples’ wallets they offer a way for people to treat themselves more affordably than through a full dine-in experience, she says.
“For customers, delivery makes restaurants more accessible, and for operators it helps them to reach customers they didn’t already have, and there are benefits that come with that.”
But restaurants should make a cost assessment before signing up for delivery, she cautions.
“They need to ensure it is economically viable for them. Hospitality, in good and bad times, works on such fine margins you don’t want to discover all that new revenue is going out the door in commission fees.
“But if it is viable for an operator and it helps them get new and more customers, particularly in quieter times, that’s a good thing.”
Kiwi-owned delivery service Delivereasy started out of a garage in Wellington 10 years ago, but now operates in more than 50 cities and towns around the country.
Tim Robinson, the company’s chief executive, says consumer behaviour has changed drastically in the past decade, and it is increasingly clear that eateries can no longer rely on foot traffic alone.
The years since Covid have been tough for the hospitality sector, and restaurants are looking for ways to navigate the pressure and get their revenue streams up, he says.
“Convenience is one consumer trend that is growing, so it makes delivery a no-brainer in that sense, especially for consumers a restaurant can’t otherwise reach.
“Delivery makes the brand known, it helps get people in the door, and it services those who are not foot traffic, or who are too far away or not able to come into a restaurant to eat.”
The combination of customer convenience and potential for revenue growth makes delivery an ideal tool for future-proofing eateries, Robinson says.
“And overseas, delivery is massive - with about 20% to 30% of restaurant take from delivery. New Zealand’s delivery market is growing, but it’s got lots of growth to go to catch up with overseas.”
Delivereasy is just one of the delivery services available. International giants, such as Uber Eats, DoorDash, and HungryPanda are in the market. Another local option is Order Meal, while Nelson has its own delivery service, YUMMi.
An Uber spokesperson says delivery gives hospitality businesses another way to reach customers alongside dine-in and takeaway, which is useful in a challenging operating environment.
“For many restaurants, it’s become an important additional revenue stream, helping businesses connect with customers they may not otherwise reach and generate orders beyond their physical footprint.”
An economic impact report found restaurants on Uber Eats generated an estimated $120m additional revenue in 2024 from orders that would not have otherwise occurred, the spokesperson says.
It also reported that 70% of users said the app helped them discover new restaurants, with 58% later visiting those restaurants in person.
“Food delivery is now a regular part of how many New Zealanders engage with hospitality businesses, with around 29% of Kiwis using a food delivery app at least once a month.
“We’re continuing to expand access to Uber Eats in more parts of New Zealand, while also growing the range of retailers and merchants available on the platform.”
HungryPanda, a specialized delivery platform that connects Chinese-speaking consumers and Asian foodies with Asian restaurants and grocery stores, is a newer entrant to the market.
Since establishing a presence in 2020, it has been operating in Auckland, Christchurch and Hamilton, and now has 2000 merchant partners and 80,000 regular users.
But Kitty Lu, director of public affairs at HungryPanda, says they see scope to grow and a good future in New Zealand.
The company is looking at adding English language products, extending to more local merchants in future, and enabling a self pick up service, she says.
“Globally, and in Australia we are averaging about 20% growth a year, but in New Zealand we are the only operator in this niche, so we think there’s room for growth to be a bit higher here.
“We work with restaurants to increase their revenue streams. We do things like provide data from our system to help them understand what type of food sells best and how to optimise their menus, and share supply chain contacts.”
It is the company’s role to maintain stability across the platform’s eco-system and to do what it can to support its partners, especially in difficult times, Lu says.