Three things the struggling hospitality industry wants from the next Government
Tuesday, 23 June 2026
Many hospitality industry operators are suffering and are not expecting a turnaround any time soon, according to those that spoke to The Post about their struggles on the condition of anonymity.
One said the current state of affairs was “the worst it’s ever been” for the industry, while another said at this point, most hospitality businesses were being fuelled “only by passion”.
“I don't think it could be more challenging. In a winter with the oil crisis and fewer tourists in the environment this time of year, I’m seeing it all over. I'm up in Whangārei and down in Christchurch with my role, it's dire.”
The hospitality veteran told The Post conditions were the worst they had seen in the industry in their 30-year career.
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“People are dealing with the second year of recession, so there's no fat in the businesses [to keep many afloat]. It’s worse than ever.”
With the election in November, businesses want leadership that can make life easier, not harder, for the 20,000 operators across the country that were already feeling the heat of a down economy and fast-rising costs.
Nicola Waldren, who took on the role of chief executive of the Restaurant Association in February after Marisa Bidois’ resignation, told The Post hospitality businesses want streamlined regulation, and more support.
Waldren has been working for the association for more than 20 years, joining in her mid-20s in a part-time capacity, and follows in her father’s footsteps: Neville Waldren was CEO of the Restaurant Association for 24 years, between 1981 and 2005.
She has spent her first few months in the top job visiting member businesses.
Speaking to The Post, Waldren admitted: “I do feel the pressure of wanting our businesses to succeed, and how we can play our part in helping them.”
She had already had “a few lying awake at night moments”, given just how many hospitality businesses were closing and finding current economic conditions challenging.
Many are struggling with no reprieve in sight. The latest data from Centrix shows liquidations in the industry almost doubled in the year to May.
Costs are rapidly rising at a time when consumer demand is low, so Waldren said it was important the Government did all it could to bring them down.
“Streamlining efficiencies in the regulatory space is really important [to help our businesses],” said Waldren.
“Many of them do intersect with each other. Even as something as simple as when you're renewing your alcohol licence ‒ you're providing a whole load of the same details also for when you're renewing your food licence. If there was a portal or somewhere in one rather than repeating the same process.
“The same thing with immigration. [A central system] would make a big difference, instead of entering in the same information over and over.”
Doing that would no doubt deliver cost efficiencies for Government, which could be passed down to the businesses in the way of reduced regulation costs, Waldren said. “National consistency is something we don't see across regions.”
Having a fit-for-purpose immigration system was also important. And while the extremes of the skill shortages in the industry from a couple of years ago had eased, Waldren said the association was also working on a programme that promoted the hospitality industry as a career pathway within schools in Auckland, and was gearing up to roll this out nationwide as a way to plug skills gaps.
“A lot of our businesses have streamlined their staffing whilst they've been going through a bit of a challenging time, so when things pick up they might need more people. Michelin might also help with international workers and attract people to come in and work with Michelin businesses.”
New Zealand’s Michelin Guide programme, which will announce the stars at the end of the month and be finalised before Australia’s, would allow the country to promote “culinary tourism” and better position itself as a food destination, said Waldren.
“There's a lot of opportunity to do more in that space,” she said.
“There will definitely be positives. We’re working through how we can help members in the industry maximise any opportunities that do come through, and we're talking to Tourism New Zealand ‒ they've got big plans around how we can leverage it as well.”
Waldren said she felt a sense of optimism about what summer and the high season would bring for the industry. “January and February this year, something was happening, the tides appeared to be turning, members were telling us that it felt different, and then the global oil situation unfolded.
“But with that [nearing the end] it makes me feel optimistic.”
Wellington-based hospitality veteran Steve Logan, co-owner of restaurants Logan Brown and Liberty, said hospitality needed a stable Government, ideally one that wasn’t a coalition and wasting time “pulling in different directions”.
“Our industry relies so much on business confidence, so if business confidence in general is up, then we're OK … but unfortunately confidence around all my colleagues is not good,” said Logan, who has been in business for 38 years.
“If you consider how many restaurants have closed down and how the pie has shrunk but still the ones remaining are still scrambling to get business.
“We haven't got the number of bums on seats, and the average spend is lower.”
Rising costs were rubbing salt in the wounds caused by less spending, he said, and the industry was in a position where most things were out of the control of operators, and they relied on the Government to pull its own levers to aid a recovery.
“It's a shame the economy is the way it is, there's so many under pressure.”
Operators were fuelled by passion that kept them going in these times, but it came to a point where it was no longer possible. Logan said Wellington operators were hanging out for World of WearableArt in September, which always provided a big boost for operators.
The hospo boss said he would like to see a simplification of regulations from the next Government, including making liquor licensing applications and renewals easier, as well as food safety and immigration permits.
“All those things are so complex, you can easily trip up, you've got so much paperwork to do. A restaurateur is not a lawyer, is not an accountant, or an immigration specialist, but you almost have to be one to process all these, and you can't afford to have a specialist looking after it, so small to medium business owners are spending so much time with all this red tape,” he said.
“If we could say ‘Well at least we're going to get a decent Government’, then that would be something to look forward to.”
Hospitality NZ’s view
Hospitality NZ chief executive Kristy Phillips said the main thing hospitality operators were looking for was certainty that economic conditions are improving. “That will give consumers confidence to head out and about for their regular catchups with colleagues, friends and whānau, to be able to celebrate occasions spontaneously, as well as plan their next holiday.
“People getting out and socially connecting, and supporting their local venues at the same time, is what we’re wanting to see,” Phillips said.
A practical way of supporting that would be a 50% reduction in excise tax on draught beer sold for on-premise consumption, she said.
She agreed that making sure the industry had easy access to the talent it needed, whether through training pathways and immigration policy, and supportive and streamlined regulations, particularly related to alcohol licensing, would also be beneficial for businesses.