Our 2022 Restaurant Association Hospitality Report shows that nationwide hospitality sales revenue has bounced back.
In 2022 the industry recorded sales of over $13.38 billion (year ending September 2022). This represents a sales increase of 7.7 per cent over last year. This year’s revenue gains also represent a net 10.75 per cent increase on pre pandemic revenue.
Sales increases carried across the industry, excluding the clubs sector, with the food to go / takeaway sector having the largest revenue figure growth, recording sales of $517 million more than 2021. Cafes and restaurants followed with sales $358 million more than 2021.
Cafes and restaurants have returned to pre-Covid sales levels, recording annual sales of $6.6 billion for the year ended September 2022, more than 15 per cent higher than 2019.
BREAKDOWN BY REGION
Consumer spending is highest in Auckland, Wellington, Canterbury and Waikato. These four regions all have annual sales of more than $1 billion per annum.
In 2022 the Queenstown-Lakes region had the largest percentage sales growth at 13.2%, followed by the Taranaki region at 9.7 per cent growth. While Queenstown-Lakes recorded the largest growth, the region still has some way to recovery before returning to pre-Covid sales levels.
And, despite some major ongoing Covid-related upheavals for the Auckland region in the second half of 2021 and early 2022, Auckland posted sales of $442 million more than 2021 (year ended September), showing percentage sales growth of 9.5 per cent. Auckland has bounced back to achieving new sales highs, recording 10.6 per cent higher than pre-Covid sales peaks.
LABOUR SHORTAGES
Employee data from the Hospitality Report highlights the skills shortages that continue to plague the industry. While 2022 employee numbers reversed the decline seen in 2021 to reach 135,000 employees, at 0.37 per cent this is the lowest growth level in more than 10 years.
The dominant Restaurant and Cafe sector had a minimal 0.66 per cent increase in employee numbers from 2021-2022, and three sectors had declines; caterers (down 6.12 per cent); pubs, taverns and bars (-4.5 per cent) and clubs (-4.9 per cent).
In addition, we are predicting to need another 30,000 employees to keep up with the pace of growth over the summer period.
THE ROAD AHEAD
The rate of growth in hospitality over recent years has been impressive and until the Covid-19 outbreak our industry was booming – we were on track to deliver sales of more than $14 billion by 2022.
Currently, a return to high sales growth is positive, however, it’s no secret that the largest challenge our industry currently faces is in meeting our workforce demands. Labour shortages and increased costs across the board are putting significant pressure on our businesses.
While the Association has placed additional focus on the training and development of New Zealanders, with only 3.3 per cent unemployment, it is essential that we can access the talent we need to run our businesses, and in many cases help grow the industry as a whole.
To rebuild itself the industry needs to focus on recovery and sustainability and put in place operational structures for a profitable and sustainable hospitality business model.
Find out more about the 2022 Hospitality Report here. Restaurant Association members can also download a free electronic copy of the full 2022 Hospitality Report by clicking here.