New Zealand Restaurant Statistics: Industry Growth, Market Trends & Consumer Insights

New Zealand’s restaurant industry may be smaller in scale compared to global markets, but it reflects many of the same structural shifts: tight margins, labor shortages, and evolving consumer expectations. With over 18,000 food service establishments operating nationwide, the sector plays a significant role in employment and local economies.

According to the USDA’s Foreign Agricultural Service, staffing gaps remain a pressing issue, directly impacting service capacity and operational efficiency. Meanwhile, consumer demand is leaning toward convenience, digital ordering, and casual dining, prompting operators to rethink delivery models and menu strategies.

To understand how the New Zealand food service industry is shaping up, this blog explores the most important New Zealand Restaurant Statistics and what they mean for industry insiders.

The State of NZ’s Restaurant Sector in 2025

New Zealand’s restaurant and café sector remains vital to the national economy, driven by domestic demand and regional variation.

A. Market Size and Overview

New Zealand’s food service industry recorded sales of $8.8 billion in 2023 and is forecasted to grow at a CAGR of 5% from 2023 to 2028. 

Within this, the restaurant and café landscape generated approximately $7.8 billion in annual sales from March 2024, contributing to a larger hospitality sector totaling $15.7 billion with an increase of 5.8% over the previous year. 

Further, cafeterias and restaurants recorded $1.99 billion in sales during Q1 2025, making up about 50% of total hospitality revenue for the period. 

B. Growth Patterns

• National year-on-year growth for the NZ hospitality industry in Q1 2025 was a modest +1.0%, a slowdown from Q4’s 3.2% but indicative of seasonal adjustments.
• The Y‑o‑Y sales for cafes and restaurants rose by $344 million in 2024 compared to 2023, at a 4.6% increase.
• During 2023-2024, menu pricing increased by 6.4% due to increased operational costs and rising inflation (4%), highlighting that the sales growth was slower than the cost increase.

C. Regional Dynamics

Performance across New Zealand’s restaurant sector varies significantly by region, driven largely by tourism activity, local economic conditions, and population movement. While the national growth rate remains steady, some local markets are showing strong momentum, while others are struggling to keep pace.

Recent sales data from Q1 2025 reveals:

• Nelson recorded the strongest growth in the country, with sales rising from $46 million in Q1 2024 to $53.6 million in Q1 2025, a nearly 17% increase year-over-year.
• Queenstown-Lakes, a tourism-heavy region, posted a 13.4% increase, driven by rising visitor numbers and a premium dining scene.
• Canterbury also saw stable growth, with hospitality sales nearing NZ$402 million in the first quarter.
• In contrast, Auckland grew by just 0.4%, with operators citing high operating costs and slowing local demand.

New Zealand Restaurant Statistics: Decoding Restaurant Footprint Growth

This section examines how New Zealand’s restaurant landscape is evolving in numbers, format, and ownership mix.

Restaurant Expansion

• As of 2025, NZ has 18,000+ food service establishments, including 3,410 restaurants. This number has increased by 2.16% from 2023.
• Out of the total restaurants in New Zealand, 84% are independent, single-owner operations, while 16% are part of larger brands.
• Within regional distribution, Auckland Region leads with 1,696 restaurants, followed by Canterbury (546) and Wellington (491)

Segment Mix

1. Full-Service Restaurants (FSRs)

Full-service restaurants are the largest profit channel in the New Zealand food service industry, with a 35.4% market share and a current value of $3.1 billion. This growth is attributed to the competitive and dynamic nature of the segment, which consistently adapts to evolving customer needs. Many restaurants in this segment are introducing vegan and gluten-free items featuring locally sourced ingredients and witnessing higher growth.

2. Quick-Service Restaurants (QSRs)

QSR is the second largest channel within the New Zealand food service industry, with a 31.4% share. In 2023, the segment generated about $2.8 billion in profits and a CAGR of 4.3% from 2018 to 23. QSR’s momentum in the New Zealand restaurant industry is driven by a preference for convenience and affordability.

3. Fast Food

There are approximately 1,025 fast-food restaurants (QSR) operating in NZ, with 60% chain-affiliated and 40% independent establishments. The fast-food segment has grown significantly in New Zealand due to rising consumer demand for tasty, quick, and affordable food options.

4. Cafes

Tea and coffee shops in New Zealand reached NZD 472.2 million or $286.7 million in sales in 2023. While the growth is slow, these outlets are popular among younger demographics to enjoy affordable meals with friends.

5. Catering

Despite a post-pandemic slowdown, the catering sector registered the highest sales increase from 2023, by 19.4% in the year to March 2024.

Consumer Behavior Trends: Where Are New Zealanders Spending on Food?

• Delivery and takeout are key aspects of dining preferences in New Zealand, with 67% of diners choosing these options to receive their meals.
• In Q4 2022, Uber Eats held a 51.7% market share in New Zealand, followed by Menulog, which had a 31.3% market share.
• More than half of NZ consumers (54%) now search for restaurants via third-party food apps.
• Delivery is also a popular choice among consumers when hosting at home. A total of 22% of consumers in New Zealand, Canada, and Australia have ordered delivery when they have guests over.
• 23% of NZ Gen Z consumers report they “often eat delivery in bed” vs. 53% who eat on the couch.
• Food photography influences nearly 40% of consumers when choosing a restaurant for delivery or takeout.
• Of the 17% of New Zealand diners who rely on social media to explore new restaurants, 22% prefer Instagram.
• Ghost kitchens have emerged across New Zealand’s suburbs as they offer lower overhead alternatives for delivery-only operations.
• Gen Z and Millennials are 27% more likely to choose restaurants that use eco‑friendly packaging.
• Among on-premise diners, 42% consider sustainability or ethical credentials when choosing where to eat.

Menu Trends in New Zealand Restaurants

Kiwi diners are increasingly aligning their food choices with personal values, wellness priorities, and cultural interests. These shifting motivations are reshaping menu design and sourcing, encouraging the restaurant sector to focus on unique experiences.

A. Plant-Based, Organic, and Gluten-Free Menus

Over the past 3-4 years, New Zealand has emerged as a top-five country for veganism, with searches and demand for plant-based meat alternatives rising by over 20% in grocery and food service channels.

This shift is driven by rising health awareness, environmental concern, and dietary inclusivity, especially among consumers aged 18-34. As a result, restaurants are responding with vegan menus, dedicated gluten-free options, and allergen-safe meal preparations.

B. Local Sourcing and Sustainability

Diners in New Zealand are putting a greater emphasis on transparency when it comes to their food. Plus, the increased preference for healthy and organic menus has encouraged them to seek locally sourced ingredients in their food when eating at restaurants.

About 41% of consumers choose where to eat based on whether the food and drinks are locally produced. Restaurants are adapting by building relationships with regional farms and markets to incorporate seasonal produce and locally sourced ingredients.

C. Global Cuisines

New Zealand’s diverse population is reflected in the rising availability of Korean, Southeast Asian, Middle Eastern, and other global cuisines within restaurant menus. 

According to Kerry’s 2024 ANZ Taste Charts, the popularity of international flavors and foods like Korean gochujang, matcha, teriyaki, fermented pickles, and BBQ smoke has grown significantly since 2021. 

D. Low-Waste & Seasonal Menus

Restaurants in New Zealand are moving away from long, static menus in favor of tighter, more adaptable ones built to incorporate seasonal produce and reduce wastage in restaurants.

A 2024 Future Menus report noted operators are embracing leaner menus not just for waste reduction but because diners prefer focused, curated food offerings that focus on local and seasonal offerings. For restaurants, these leaner menus reduce overhead and kitchen waste. For diners, they offer freshness, variety, and a better-quality menu.

New Zealand Restaurant Workforce Trends

• The hospitality sector, including cafés, restaurants, takeaways, pubs, and catering, directly employs 145,000 people as of early 2024, marking a robust 7.3% increase year-on-year and exceeding outlet growth of new establishments.
• In a 2024 survey of hospitality employees, 90.9% of respondents felt productive in their roles, while 89.9% felt confident in their skills to do the job.
• In the same survey, 57.2% of respondents said training opportunities were good, up from 40.5% in 2022.
• Around 51% of workers earn less than a living wage, of which 71.8% include front-line staff as compared to 30% for managers.
• 82% of operators in Auckland’s hospitality sector report being understaffed, while 88% say senior hires are “difficult or extremely difficult.”
• By 2027, around 31,000 job openings are expected in Auckland’s hospitality sector, including 11,100 new roles and 20,000 replacements, representing 9% of total regional job openings.

Restaurant Technology Adoption in New Zealand

1. QR Code Menus 

Restaurants across the country are using QR code menus and contactless ordering to streamline operations and enhance guest safety. Scanning a table QR lets customers order and pay directly from their phones, reducing reliance on printed menus and front-of-house staff. 

In fact, Dine Find’s 2025 Dining Trends Report reveals that nearly 50% of diners aged 18-35 hold neutral or positive opinions on QR code ordering.

At the same time, operators appreciate how quickly they can update menus, which makes QR ideal for daily specials and ingredient shortages, while the digital format encourages upselling through intelligent prompts and descriptions.

2. Self-Service Kiosks

Kiosks are no longer limited to QSR or fast causal chains. They’re increasingly being adopted by smaller operators in New Zealand to boost efficiency and manage operations amidst labor pressures. 

For instance, Downlow Burgers, one of New Zealand’s fastest-growing fast-food brands, launched in 2023 with at least one kiosk at every outlet. Today, it has scaled to 10 locations across the North Island, where about 90-95% of its total sales come through kiosks.

Self-service kiosks deliver on multiple fronts—cutting queues, enhancing order accuracy, and encouraging higher check sizes, thanks to smarter upselling and easy menu browsing.

3. Cloud-Based POS Systems

Restaurants are rapidly upgrading from legacy systems to cloud-enabled POS systems, integrating QR ordering, mobile payments, loyalty programs, and real-time menu management. This level of digitalization in NZ restaurants simplifies operations, reduces errors, and frees staff to focus on service rather than manual entry.

4. Digital Payments

Speed, simplicity, and convenience define modern dining today, and in New Zealand, digital wallets and contactless payments have become a critical aspect of it. Instead of waiting in long lines for payment and handling cash, customers prefer the convenience of self-checkout and quick payments.

This is evident in the growth of digital and contactless payments among consumers, with digital wallet adoption rising to 15%, compared to 10% in 2022. In short, NZ operators who streamline checkout can improve not only customer satisfaction but also staff efficiency and table turnover.

These technologies reflect a clear shift toward higher efficiency, flexibility, and customer autonomy, driven by rising labor costs and staffing shortages, consumer preference for speed and digital convenience, and the competitive desire to upsell and gather customer data.

EXPERT OPINION