Cheers, Welly hospo on the up

Friday, 6 June 2025

The capital fares considerably better than many other regions in the Restaurant Association's Hospitality Industry Report for the first three months of the year, with sales up 4.1% on 2024. (File photo)

Despite continued rising costs and workforce shortages Wellington’s hospitality sector has kicked off this year with a small, but much-needed bump in trade, in contrast to flat national sales growth.

The Restaurant Association's Hospitality Industry Report for the first three months of the year shows total sales reached $4 billion—1% up on the same period last year, but down 5.9% on the fourth quarter of last year, although that typically includes the busy festive and function season.

While Nelson and Queenstown-Lakes led the pack when it came to year-on-year increases (16.5% and 13.4% respectively) the capital fared considerably better than many other regions, with sales up 4.1% on 2024.

In contrast, Auckland saw marginal growth of just 0.4% ; other regions such as Canterbury, Marlborough and Hawke’s Bay reported declines.

Restaurant Association chief executive Marisa Bidois says Wellington’s result for the first three months of the year is promising.

Wellington has seen a number of high profile closures over the last 24 months, including Mabel’s, Daisy’s in Tinakori Rd, and most recently Avida, as well as a flurry of new openings.

Restaurant Association chief executive Marisa Bidois said it was encouraging to see Wellington’s hospitality sector had had a solid start to the year.

“That’s a promising result given the national picture is largely flat. While challenges around costs and staffing remain, it’s encouraging to see signs of resilience in the capital.”

Nationally however, she said while there were signs that inflation was easing, many operators were still facing significant and long-standing challenges.

High fixed costs—particularly rent, utilities, and compliance expenses—continue to squeeze margins, particularly for small and independent businesses.

Persistent shortages in skilled labour remain one of the top operational constraints, limiting trading hours, service delivery, and customer experience, with 72% of businesses reporting difficulty in filling senior roles.

Wellington will play host to Hospitality New Zealand’s annual conference next week, June 10-11. Guest speakers across the two-day event include the hospitality group’s chief executive Steve Armitage, economist Shamubeel Eaqub and MasterChefNZ winner Tim Read.