Budget 2025 introduced a new tax incentive — the “Investment Boost” — designed to encourage businesses to invest in new assets. But is it a good fit for hospitality? Here’s what you need to know.

What is the Investment Boost?

The “Investment Boost” gives businesses a 20% deduction in the year they first use an eligible new asset — on top of normal depreciation. It applies from 22 May 2025 and has no cap on asset value or quantity.

Eligible assets include:

• New equipment (e.g. coffee machines, dishwashers, commercial ovens)
• New vehicles (e.g. delivery vans)
• New commercial or industrial buildings (e.g. refitting a kitchen, upgrading dining areas)

Why It Could Work Well for Hospitality

1. Immediate Tax Relief
   If you’re planning to upgrade or expand, this can significantly reduce your taxable income in the same financial year — boosting cash flow.
2. No Cap on Spend
   Whether you’re a small café buying a new fridge or a large operator building a new site, you can claim — no maximum limit.
3. Building Improvements Count
   Hospitality businesses often invest in physical upgrades, which aren’t always eligible under other schemes — but they are here.
4. Can Encourage Smart Investment
   If you’ve been delaying big purchases, this could be the nudge to invest in more energy-efficient or higher-capacity equipment that improves service and margins.

But There Are Some Considerations

1. Cash Upfront Still Needed
   The boost gives you a tax deduction, not a grant — so you still need to spend the money first, which could be a barrier if cash flow is tight.
2. Doesn’t Apply to Second-Hand Assets
   Many hospitality businesses look for good quality second-hand gear — but only new assets are eligible.
3. Timing Matters
   To claim the extra deduction, the asset must be first used or available for use after 22 May 2025. If you’re already mid-upgrade, your spend might not qualify.
4. Buildings Must Be New
   Renovating or extending an existing building may not be eligible unless it qualifies as a new build under depreciation rules — check with your accountant.

The Bottom Line

If the timing is right for you then the Investment Boost offers a financial upside. But it won’t solve all the sector’s challenges, and the benefits depend on your ability to spend up front and claim through your tax return.

Find out more here

Download fact sheet here

• Best new establishment: First Mates Last Laugh.
• Double win for Panacea.
• Karangahape Road establishments’ take out three categories.
• Nicola Richards of Monsoon Poon honoured.

Resilience and innovations was on show as Auckland Hospitality’s best came together over King’s birthday weekend for the annual Lewisham Awards. Finalists, judges and guests packed out the Viaduct Events Centre for an evening of recognition and celebration with a time travellers theme.

The makers of the city’s best cocktail, cafe lattes and mince pies, assembled to acknowledge the achievements of the past year.

Karangahape Road establishments featured heavily with a double win for Apero for best Chef and Wine, best central establishment for pasta restaurant Pici, as well as the emerging talent award for the cult following of Pie Rolla.

Further off the beaten track were wins from Westhaven Marina located First Mates, Last Laughs for best new establishment, founded by Judith Tabron of Soul Bar fame, as well as Avondale based Tokos Tacos for best West Auckland establishment.

The Restaurant Association sponsored Hospo Hero category was won by Nicola Richards, owner of Monsoon Poon, the popular Southeast Asian restaurant closed it’s doors after almost 20 years of trading in early May.

LEWISHAM AWARD WINNERS 2025

Best Emerging Talent – Lewis Mazza-Carson @ Pie Rolla’s

Best Bartender – Theo Thjandra @ Truth or Dare/Goblin

Best Beer Brewer – Hallertau

Best Cafe – Duo

Best Chef – Leslie @ Apero

Best Cocktail Experience – Panacea

Best Central Auckland Establishment – Pici

Front of House – Sophie Ehan @ Gilt

Hospo Hero – Nicola Richards @ Monsoon Poon

Best Innovation – Everybody Eats

East/Waiheke – Casita Miro

Best North – Fantail & Turtle

Best South – Mania Seafood Boil

Best West – Tokos Tacos

Best New Establishment – First Mates, Last Laughs

Best Producer – Kumeu River Wines

Best Sales Experience – Gina Nicholls @ Tickety Boo

Best Sustainability – Panacea

Best Wine – Apero

The Government’s 2025 Budget — dubbed the “Growth Budget” — outlines a range of new investments, savings, and policy reforms aimed at rebuilding the economy and funding essential services. The Restaurant Association is welcoming the Government’s Investment Boost tax incentive as well as tourism infrastructure support and screen production support which will see flow on benefits for our industry, However the Budget also signals challenges for small businesses, including an announcement to increase minimum employer KiwiSaver contributions. We’ve summarised the key opportunities and pressures for our sector below.

The Restaurant Association’s priorities are much the same as they have been for many years now:

• Tourism marketing: allocating a portion of the annual international tourism marketing budget to highlighting food and beverage tourism.
• Immigration reset: policy changes must be progressed quickly, to create a system that recognises the unique skills required in hospitality and provides clear pathways for workers to enter and grow within the sector.
• Workforce development: building a highly skilled domestic workforce is essential. The Association wants to see greater support for training programs developed and delivered by industry experts.

Positive outcomes

Investment Boost tax incentive

Businesses can deduct an additional 20% of the value of new productive assets (on top of depreciation), improving cashflow and encouraging investment in equipment, kitchen upgrades, or digital tools. This means a lower tax bill in the year of purchase, with the remaining book value depreciating at normal rates.

We have been pushing for changes around tax deductibility for investment in assets — particularly for small businesses — so today’s announcement is a positive step. So many of our businesses in the hospitality industry are small and micro enterprises, many of whom just need a bit of support to enable them to invest in and grow their business. However the challenge that remains for many in our industry is securing the cash required to make these investments.

Tourism & Hospitality Boost via IVL

The Restaurant Association is also pleased to see that the Minister for Tourism and Hospitality will be responsible for $190 million of revenue from the International Visitor Conservation and Tourism Levy in the 2025/26 financial year. We supported an increase to the levy, knowing that increased levy revenue would increase the amount that could be invested in growing tourism – which is crucial to supporting our industry.

With just over $130 million allocated for the promotion of New Zealand to key markets as a visitor and business destination in the coming year, we’re keen to ensure that a portion of this is allocated to promoting our national and regional food stories. Food and beverage tourism is becoming increasingly popular, and we want to ensure New Zealand makes the most of this opportunity.

Other benefits from the announcement include:

• Cost of Living support – Increased Working for Families payments and SuperGold card rebates puts more money in the economy which may lifting consumer spending in local cafés, restaurants, and attractions.

• Invest New Zealand – A new agency to attract foreign direct investment, focused on high-growth sectors, could lead to increased capital flows to innovation-focused hospitality or tourism businesses.

• Screen production rebates – Over $584 million in combined domestic and international screen production support will attract filming to NZ, with potential associated flow on benefit for hospitality.

However, members have already raised questions about the Government’s changes to Kiwisaver announced in Budget 2025. Employer (and employee) contributions will rise from 3% to 4% by April 2028 and Kiwisaver will become eligible for 16 and 17 years olds. This presents added cost pressure for hospitality and tourism businesses that are labour-intensive and operate on tight margins.

So many young people enter the hospitality industry as their first job, we have no doubt that the majority of 16 and 17 year olds who are in work are employed in service industries like ours. The Government contribution will also be halved to 25 cents per dollar, to a maximum of $260.72, so while the Government cuts how much it contributes to Kiwisaver, our businesses will be filling that gap by paying a larger contribution — and to more people.

The Restaurant Association will be working through the details of these changes, and other initiatives announced in the Budget, to ensure the hospitality industry is able to continue on a path to recovery.

You can view

• What the RA is looking for for the hospitality sector in Budget 2025
• Budget at a Glance here.
• Summary of initiatives from Budget 2025 here

As winter sets in across Aotearoa, our hospitality teams often face extra health and wellbeing challenges – from seasonal illness to lower moods and reduced energy. In a high-pressure, customer-facing environment, this can quickly impact team morale and business performance.

Taking proactive steps to support your people during the colder months can make a big difference in staff wellbeing, productivity, and retention. Here are some easy, practical tips to promote Winter Wellbeing:

1. Encourage Sick Staff to Stay Home

It might sound obvious, but many hospo workers are reluctant to call in sick. Reinforce a clear message: if you’re unwell, stay home. Having a culture that supports this reduces the risk of spreading illness and protects your whole team.

2. Mind the Temperature Transition

Going from cold outdoor conditions into warm kitchens or front-of-house spaces can put extra strain on the body. Make sure your team has a chance to properly warm up and stay hydrated. Provide a space to hang wet jackets and encourage layering that can be adjusted as body temperature changes.

3. Promote Flu Vaccinations

Flu vaccinations can help reduce the risk of illness and time off work during the colder months. While not every business can afford to cover the cost, some operators choose to subsidise or fully reimburse flu shots. Another option is to explore local health providers that offer on-site group vaccinations – this can be a cost-effective and convenient solution if you have a larger team.
At a minimum, you can encourage staff to get vaccinated and share information about free or low-cost options available through pharmacies or health providers.

For more information, visit Health New Zealand | Te Whatu Ora or check with your local public health unit.

4. Support Mental Health Conversations

The shorter, darker days of winter can impact mental wellbeing. Make time for check-ins, keep communication open, and share support resources such as the Restaurant Association’s mental health and wellbeing resources.

5. Boost Morale With Small Acts of Kindness

Winter can feel long and tiring, so look for small ways to lift team spirits – a hot meal shout, warm drink on shift, or celebrating a staff member’s contribution can go a long way.

6. Be Flexible Where You Can

Winter often brings quieter periods in many hospitality businesses, making it a good time to adjust and rebalance workloads. Offering flexible rosters – such as shorter shifts, condensed hours, or time off when it’s quiet – can help staff rest and recover, especially after a busy summer or shoulder season.

This period can also be an opportunity to invest in your team through extra training, cross-skilling, or professional development. Whether it’s upskilling front-of-house in wine knowledge or giving kitchen staff the chance to experiment with winter menus, these activities keep your team engaged and growing.

Some businesses also use winter as a chance to take a brief team break, close for maintenance, or plan staff wellbeing days – especially if it means coming back stronger for the spring and summer seasons. Even small changes can make a big difference to energy levels and long-term staff retention.

At the Restaurant Association, we know that supporting staff wellbeing is good for people and for business. We’re currently developing a new toolkit of mental health and wellbeing resources specifically tailored to hospitality, which will be released in the coming months to help you support your team even further.

May 2025

The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to submit on the Sale and Supply of Alcohol (Sales on Anzac Day Morning, Good Friday, Easter Sunday, and Christmas Day) Amendment Bill. 

Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people.

The Restaurant Association supports this bill, which seeks to allow licensed businesses already permitted to open on ANZAC Day morning, Good Friday, Easter Sunday and Christmas Day to sell alcohol under their usual licence conditions by repealing sections 47 and 48 of the Sale and Supply of Alcohol Act 2012. 

Reducing the burden on hospitality businesses

The current alcohol trading restrictions place an unnecessary burden on hospitality workers that they do not face on any other days of the year. Businesses that are already legally able to operate on these public holidays should be able to operate under normal conditions. The amount of time, money and the potential loss of sales that hospitality businesses face when explaining to customers that alcohol can only be served with a substantial meal is unnecessary. 

The hospitality industry, which employs around 145,000 people, is our country’s 7th largest employer. Our businesses are already struggling with significant challenges, including declining revenue, reduced customer numbers, and rising costs. The ability to trade and sell alcohol under normal conditions on these public holidays can provide a significant financial boost, by being rid of outdated laws which are complex to enforce by operators, and leave consumers confused and disappointed.

Promoting a thriving tourism industry 

As an industry that heavily relies on international tourism to thrive, our hospitality businesses need to be able to make operating decisions that service a wide variety of customer preferences. We’re proud of the contribution our businesses make to our vibrant towns, cities and communities, but we need policy settings to enable that to continue. As such, we support legislation that allows tourists to experience consistent rules around alcohol consumption. 

Tourism contributes 7.5 per cent of GDP and continues to be New Zealand’s second highest export, with overseas visitor expenditure increasing by $6.3 billion (59.9 per cent) to $16.9 billion. The Government has also recently announced a major drive to boost New Zealand as an international travel destination with a $13.5 million turbocharge for global marketing activity. Providing international visitors with a consistent experience, regardless of public holidays, will help to support the hospitality and tourism industry.  

Outdated religion-based laws

The primary reason for restricted trading on Good Friday, Easter Sunday and Christmas Day is based on religious ideology. Removing these restrictions aligns with the principles of economic freedom and choice. Given the challenges posed by the global pandemic, the focus should be on supporting businesses and not retaining outdated restrictions that hinder economic recovery.

Conclusion

Thank you for the opportunity to provide feedback on the Sale and Supply of Alcohol (Sales on Anzac Day Morning, Good Friday, Easter Sunday, and Christmas Day) Amendment Bill. We would be happy to discuss any part of this submission in more detail, and to provide any assistance that you may require.

Ngā mihi nui,

Marisa Bidois

Chief Executive

May 2025

Committee Secretariat

Education and Workforce Select Committee

Parliament Buildings

Wellington 

Restaurant Association of New Zealand submission on the Employment Relations (Termination of Employment by Agreement) Amendment Bill

The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to submit on the Employment Relations (Termination of Employment by Agreement) Amendment Bill. 

Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people.

The Restaurant Association supports this bill, which seeks to allow for protected negotiations to occur between an employer and employee to terminate the employee’s contract. We submit that employers and employees should be able to reach a mutual agreement if this process is of benefit for both parties. 

Select Committee Considerations 

As the largest representative body for restaurants and cafés in New Zealand, we represent over 2,500 hospitality businesses, with a large proportion of these members being small business owners. We submit this bill would be of great benefit to small businesses who do not have the same access to resources as large businesses. The ability for businesses to hold protected negotiations is likely to result in the best case scenario for both employers and employees. 

There are cases where it is in the best interest of the employee and the employer to have an option to mutually agree to terminate the employee’s contract. If an employee is not the right fit for a business, but does not have the financial resources or time to seek new employment, this bill provides an option that benefits both parties. 

The Restaurant Association is aware there are some concerns regarding possible power imbalances between employees and employers, however, we submit that employee protections can be included in the bill to address this issue while still providing the opportunity for both parties to receive the benefits of protected negotiations. 

The United Kingdom’s protected conversations model, which this bill is based off, include employee protections for anything said or done which in the tribunal’s opinion was ‘improper’, for example:

• harassing, bullying and intimidating the employee, for example, through the use of offensive words or aggressive conduct,
• unlawfully discriminating against or victimising the employee by reason of any one of the protected characteristics, 
• putting unfair pressure on an employee, such as not giving them reasonable time to consider a settlement offer or threatening dismissal if a settlement proposal is rejected,
• telling an employee that unless any offer is accepted this will result in their dismissal, and
• not allowing an employee to seek independent legal advice. 

The Restaurant Association would be supportive of similar inclusions in this bill, however it is important to ensure the final legislative wording is clear and explicit in what is expected of employers. Employers should not be punished for ambiguity in legislation.

Thank you for the opportunity to provide feedback on the Employment Relations (Termination of Employment by Agreement) Amendment Bill. We would be happy to discuss any part of this submission in more detail, and to provide any assistance that you may require.

Ngā mihi nui,

Marisa Bidois

Chief Executive

May 2025

Background 

After testing some ideas that could be included in a draft Local Alcohol Policy for Christchurch and Banks Peninsula, the Christchurch City Council are now consulting on their proposed LAP.

Survey Questions 

Reduction in off-licensed maximum trading hours to 9pm

Do you support the proposal to reduce all off-licensed retailers’ maximum trading hours to 9pm across Christchurch and Banks Peninsula?

This means all bottle stores, supermarkets, specialty stores, small grocery stores, wineries and Working Men’s Clubs would have to stop selling alcohol to take off the premises no later than 9pm each day.

• I support part of this proposal

Additional feedback 

The Restaurant Association strongly supports moves to reduce alcohol-related harm. We believe that any decisions regarding reducing trading hours should be evidence-based rather than intuition-based or speculative about what could reduce alcohol-related harm, and while there is no evidence from any Council that reducing trading hours for off-licence outlets or on-licence venues reduces alcohol-related harm, we submit the Council should commit to measuring the impact of this policy.

Place a freeze on new off-licences in high deprivation areas 

Do you support a freeze on granting an off-licence to new premises in areas that service high deprivation communities (decile 8, 9 and 10)?

Applicants who can show that their primary purpose is not the sale and supply of alcohol may apply for an exemption.

• Yes

Additional feedback

We support the Council’s proposal, particularly given any freeze on new licences applies specifically to off-licences—allowing our food businesses to continue to contribute to the sense of community and the vibe that our cities need.

Restricting new bottle stores’ proximity to sensitive community facilities 

Do you support restricting new bottle stores from opening within 200 metres of addiction treatment/rehabilitation centres, primary schools and secondary schools in all Christchurch suburbs except Banks Peninsula and inside the central city (inside the four avenues)?

• Yes

Additional feedback

We support the Council’s proposal, particularly given any freeze on new licences applies specifically to bottle stores—which we maintain pose the most significant risk for alcohol-related harms of any licence.

Restricting new bottle stores’ proximity to sensitive community facilities 

Do you support restricting new bottle stores from opening within 100 metres of addiction treatment/rehabilitation centres, and 50 metres of primary schools and secondary schools within the central city (inside the four avenues), and exempting the City Centre Zone?

• Yes

Additional feedback

We support the Council’s proposal, particularly given any freeze on new licences applies specifically to bottle stores—which we maintain pose the most significant risk for alcohol-related harms of any licence.

Restricting new bottle stores’ proximity to sensitive community facilities 

Do you support restricting new bottle stores from opening within 50 metres of addiction treatment/rehabilitation centres, and primary schools and secondary schools in Banks Peninsula (including, but not limited to, Akaroa, Lyttelton, Diamond Harbour, Governors Bay, Little River and Duvauchelle)?

• Yes

Additional feedback

We support the Council’s proposal, particularly given any freeze on new licences applies specifically to bottle stores—which we maintain pose the most significant risk for alcohol-related harms of any licence.

Applications are now open to small business owners who qualify for one of American Express’ signature grant programmes in 2025: Backing International Small Restaurants and Backing Historic Small Restaurants.

Together, the “Backing Small” programme grants will provide US$3.95 million in funding and other resources to help small and independent restaurants around the world preserve their history and legacy while celebrating their cuisines and invigorating local economies.

“American Express is proud to back local champions who strengthen their communities, and that includes many small and independent restaurants,” said Madge Thomas, Head of Corporate Sustainability and President, American Express Foundation. “Food brings people together, and we aim to offer these restaurants the support they need for their spaces and operations so they can continue to grow and be pillars in their neighborhoods.”

This year, Backing International Small Restaurants is open for the first time to applicants in New Zealand. Eligible restaurants in Auckland are able to apply for one of five grants valued at $25,000 NZD each. The Restaurant Association is supportive of this programme, with CEO Marisa Bidois commenting: “We are pleased to see American Express extending its global support for small restaurants to New Zealand. This initiative acknowledges the critical role that our small hospitality businesses play in shaping our local culture and economy. The Restaurant Association is committed to championing initiatives that provide real, tangible benefits to our industry, and this is one of them.”

Grantees from past years say the funding helped them make much needed infrastructure changes. Sue and Dale Messina from Bojak Brewing, a 75-seater brewery in the Melbourne suburb of Dandenong were one of the 13 grant recipients in Australia in 2024. They used the grant to upgrade equipment and facilities in their business.

“The American Express grant was great because it helped us afford improvements that we couldn’t have made otherwise. We installed permanent gas heaters in the outdoor beer garden, making it a perfect year-round spot for families and beer lovers alike. The grant also enabled us to invest in new kitchen flooring and better equipment like a new density meter to provide more precise measurements and streamline the brewing process, as well as a carton box-taper to improve efficiency when packaging beer.”

Applications for the Backing International Small Restaurants programme are now open and close on July 1. Apply here.

American Express launched both Backing Small programmes when many restaurants closed their doors during the pandemic, evolving them over the years to support small restaurant owners in addressing their current needs. As the founder of Small Business Saturday in 2010, American Express has brought communities together by connecting small business owners with local customers when these businesses needed the foot traffic. Since 2020, our grants have supported nearly 5,000 small businesses across six countries and 50 U.S. states, Washington D.C., and Puerto Rico. Learn more about American Express’ community impact here.

April 2025

Whanganui District Council

PO Box 637

Whanganui 4541

Restaurant Association of New Zealand submission on the Whanganui District Council Draft Local Alcohol Policy

The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to submit on the Whanganui District Council Draft Local Alcohol Policy. 

Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people.

Whanganui District Council proposal

The Restaurant Association’s priority for Local Alcohol Policies is to ensure that they accurately reflect the different levels of harm from off- and on- licence venues, and the potential impact of LAPs to those in our sector who operate on-licence venues and are already heavily regulated by the conditions of holding such a licence. We are not opposed to those trading conditions – in fact, we see them as commonsense rules which ensure the safe and responsible sale and supply of alcohol.

While our more than 2,500-strong membership is made up of hospitality businesses where food is the hero of their operations, many offer alcohol beverages as a supplement to the culinary experience they provide. In a practical sense, there are far fewer restrictions and regulations for off-licence holders in terms of the responsible sale and supply of alcohol when compared to on-licence holders.

For example, when serving alcohol in an on-licence venue, staff must monitor intake and determine when they must stop service to prevent intoxication. Alternatively at an off-licence venue, customers can purchase as much alcohol as they want, to take home and then consume as much as they want without any concerns. It is clear that a large part of enabling that problem comes from the proliferation of off-licence venues, and those on-licence venues whose primary business is not food – as distinct from those on-licence venues whose primary business is food.

Of the Council’s three proposed options, the Restaurant Association supports ‘Option 2: Adopt the proposed Local Alcohol Policy 2025’, however, we believe the licensing rules for the district should be more nuanced, to support a thriving hospitality industry while still taking a risk-based approach to alcohol harm prevention and minimisation.

The Restaurant Association’s further views on the Council’s proposals are detailed below.

Sensitive sites 

Decisions regarding restrictions on proximity to sensitive sites should be evidence-based rather than based on intuition or speculation about what could reduce alcohol-related harm. It is the Restaurant Association’s position that any proximity restrictions should be considered on a case by case basis, in particular taking into account:

• The type of licence being applied for (e.g. a Class 3 Restaurant on-licence vs bottle store off-licence)
• How long a business has been operating (e.g. if an ECE or school decides to open near a licensed venue, knowing they will be near a licensed venue, the licensee should not be penalised when they come to renewing their licence).

Off-licence cap 

The Restaurant Association supports the Council taking a more nuanced approach to licensing, however we submit there is a need to consider the differing risks posed by sub-class of licences. We would like to see LAPs be more specific, where for example, when considering any kind of restriction or regulation (such as one way door policies, proximity and density rules or time of sale restrictions), that conditions be set by specific license type, rather than taking a blanket on licence or off-licence approach to regulation.

Sale hours 

While we recognise the proposed drawing back of off-licence alcohol sales to 9.00pm may be appropriate for off-licenses,, we submit that greater flexibility is needed for venues such as Class 3 restaurants with an on-licence – particularly when compared to on-licenses such as taverns, nightclubs, and adult premises, and submit that flexibility around classes of specific on-licence types is aligned with the weighting and times specified in section 5(4) of the Sale and Supply of Alcohol (Fees) Regulations 2013.

One-way door

The Restaurant Association agrees with the Council’s aim to address alcohol-related harm by encouraging people who are drinking late into the night to consume alcohol in supervised environments; however, there is no conclusive research about whether one-way door policies work to reduce harm. Such policies have also been rejected after repeated attempts to implement them internationally as they have been found to increase the size of crowds gathering outside venues, rather than the intended goal of dispersal.

Other discretionary conditions

The Restaurant Association would also like to take this opportunity to highlight our other priorities for local alcohol policies:

• Conditions relating to minimum numbers of qualified managers 
• Renewal of licences
• On-licence trading hours

Conditions relating to minimum numbers of qualified managers

Some Councils have adopted (or are looking to adopt) a discretionary condition whereby the DLC and ARLA are recommended to consider imposing conditions that specify a minimum number of certified managers be present onsite, if appropriate for large capacity premises at peak times. The exact number would depend on the layout, use and capacity of the premises. This condition fails to recognise the current cost and administrative burden associated with becoming a licensed manager, with those barriers often imposed by the DLC and ARLA themselves. We do not support the imposition of minimum numbers of certified managers without first reforming restrictions around who can hold a managers’ licence, to ensure that we have the appropriately certified workforce available.

Renewal of licences

There is no reason that a licence renewal should be as cumbersome as a new licence application, yet both applicants and councils are facing significant administrative burdens for every licence renewal. The Restaurant Association recommends the Council consider adopting third-party accreditation programmes, such as HospoCred, to streamline application and renewal processes for hospitality businesses. This could be utilised in conjunction with current council processes: by checking whether any complaints or infringements have been recorded against an applicant in the Council’s own database, and then utilising the comprehensive vetting and benchmarking offered by the HospoCred accreditation programme, local and central governments can streamline workflows, reduce costs, and build stronger partnerships with the hospitality industry.

On-licence trading hours

Compared to international standards, New Zealanders traditionally eat dinner and go to bed earlier than many countries around the world. As an industry — and a region — that relies heavily on international tourism to thrive, our hospitality businesses in Whanganui need to be able to make operating decisions that service a wide variety of customer preferences: from the regular who lives down the road, to the group of friends visiting from overseas who are looking for somewhere to sit down for dinner at what we would consider a late hour.

We’re proud of the contribution our businesses make to our vibrant towns, cities and communities, but we need policy settings to enable that to continue. As such, we recommend that any hours of trade are set by specific licence type — rather than a broad on-licence versus off-licence categorisation — to enable low-risk restaurants to service an increasing number of tourists looking to dine out later in the evening.

Conclusion

Thank you for the opportunity to provide feedback on your draft local alcohol policy. We would be happy to discuss any part of this submission in more detail, and to provide any assistance that you may require.

April 2025

Waitomo District Council Draft Alcohol Fees Bylaw 2025 

Background 

Waitomo District Council is seeking feedback on the development of the Draft Alcohol Fees Bylaw 2025 (the Bylaw). The Council is proposing the new Bylaw to set fees and charges for alcohol licences in Waitomo District. Introducing this Bylaw would allow Council to set the amount it charges to alcohol licence holders (e.g. bars, alcohol stores and supermarkets), to help cover costs relating to alcohol licensing.

Council is proposing to increase alcohol licensing charges by 35% in July 2025, followed by a further 35% in July 2026 to bring the total cost recovery closer to 100%. After the initial and secondary increases, the Bylaw will form part of the review of Council’s Fees and Charges Schedule, with the next review anticipated coming into effect on 1 July 2027.

Online Submission Details

Do you agree on the preferred Option 1? 

• No 

If you answered no: 

If your answer above was ‘no’, what reason do you have, or other suggestions/approach?

The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to submit on the Waitomo District Council Draft Alcohol Fees Bylaw 2025.

Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people.

While the Restaurant Association understands the Council’s desire to introduce an alcohol licensing fees bylaw, we do not support the proposed method put forward by the Council.

The Restaurant Association supports a staggered approach to increasing alcohol licensing fees, but we recommend that a cap on annual fee increases be adopted by the Council, limiting annual alcohol licensing fee increases to a maximum of no greater than 15%. We would also like to highlight our other priorities for local alcohol fee bylaws:

• Where fee increases are proposed, ensuring they are phased in over a reasonable timeframe
• Ensuring Councils are transparent about the cost of alcohol licensing, including which types of licence incur greater costs to the council
• Retaining a minimum 30% of alcohol licensing costs to be paid for through general rates, in recognition of the benefit of a thriving hospitality industry to local communities, and
• Advocating to Central Government for a review of risk ratings set out in legislation.

Phased fee increases

While we recognise that licensing fees were set by legislation 11 years ago, and that Councils across the country need to recover costs, it is our position that businesses should not be hit with such drastic fee increases simply because their local council had not adopted an alcohol fees bylaw sooner.

For that reason we recommend that all councils take a more gradual approach to fee increases, by more evenly distributing the cumulative increase over a longer period. Further, we recommend that a cap on annual fee increases be adopted by the Council, limiting annual alcohol licensing fee increases to a maximum of no greater than 15%.

Council transparency 

We are concerned that many Councils across the country use cost recovery as a blanket justification for increasing fees across the board, often without any transparency around actual costs incurred by the Council.

It is our position that Councils should provide evidence of the actual cost of processing licences as part of their consultation, so licencees can have confidence that the amount being recovered is accurate and fair. This breakdown should also include the difference in cost of processing on-licences compared to off-licences, with a view to recovering costs on a more proportionate basis in the future.

Finally, we would like to see that Councils have sought to improve efficiencies or cut the internal cost of alcohol licences before passing these costs on to licencees. Businesses are not an endless source of funds that can withstand constant levying by local authorities, and we submit that there must be an attempt on behalf of regulatory bodies across the country to build confidence in their activities.

Public benefit of hospitality

The Restaurant Association submits that all Councils should retain a ratepayer contribution of 30% to alcohol licensing fees, to recognise the contribution of well-managed hospitality venues to the life and economy of communities, and the societal value of having facilities available where people can go to enjoy themselves while drinking safely and responsibly.

Arguments against retaining a ratepayer contribution often cite the user-pays intention of the Act as justification for complete (or almost complete) cost recovery through licensing fees. We submit that ratepayers are part of the user-pays licensing system, and rather than relying on venues to increase prices to cover fee increases, the Council should support access to affordable hospitality for all through its setting of fees.

Review of current risk ranking

The Restaurant Association recognises the need to ensure the sale and supply of alcohol is undertaken safely and responsibly. However, we are concerned that the rigid risk rating formula contained in legislation is out of date and no longer matches the realities of modern hospitality environments.

It is important that legislation and bylaws recognise there is not only a difference between on- and off-licence venues, but that there is also a difference between types of on-licence venue: for example, both a night club and a restaurant are on-licence venues, but prima facie these businesses have two very different risk profiles.

Our more than 2,500-strong membership is made up of hospitality businesses where food is the hero of their operations, with alcoholic beverages offered as a supplement to their culinary experience. We therefore believe that a more fulsome review of the risk rating of premises within the regulations to better reflect the actual risk of harm.

We recognise that the setting of risk ratings is not within the control of this Council, and therefore recommend that the Council passes a resolution in support of a Ministry of Justice review of the risk ratings in legislation, to better reflect the risks of different types of licensed premises.

Thank you for the opportunity to provide feedback on your draft alcohol fees bylaw. We would be happy to discuss any part of this submission in more detail, and to provide any assistance that you may require.

April 2025

Tauranga City Council

Private Bag 12022 

Tauranga 3143

New Zealand

Restaurant Association of New Zealand submission on the Tauranga City Council draft Annual Plan 2025/26

The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to submit on the Tauranga City Council draft Annual Plan 2025/26. 

Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people.

The Restaurant Association would like to note that this submission is in reference to the ‘Food Premises’ and ‘Street Dining’ sections of the 2025/26 Fees and Charges consultation document. As the representative body for more than 2,500 hospitality businesses, who are predominantly restaurant and cafe owners, we are concerned about both the street dining proposal and the food premises proposal. 

While the Restaurant Association recognises the cost pressures faced by Councils across the country, we are concerned about the Council’s decision to standardise the street dining fee. Standardising the street dining fee will result in immense price increases for some businesses. For example, a hospitality business in Zone B will incur over a 500% increase, even with the 50% discount of the full rate of $100 per metre. The proposal also states that these new fees would occur from July 1, leaving businesses with minimal time to plan for and adjust to that shift in costs. 

The combination of standardised street dining fees and increases to food premises fees result in a vast increase in the cost for hospitality businesses to simply exist. We’re proud of the contribution our businesses make to our vibrant towns, cities and communities, but we need policy settings that enable this to continue. Hospitality businesses are already struggling to keep the doors open and these fee increases mean that it will be more expensive for a hospitality business to simply exist.

We are also concerned that many Councils across the country use cost recovery as a blanket justification for increasing fees across the board, often without any transparency around actual costs incurred by the Council. It is our position that Councils should provide evidence of the actual cost of processing licences as part of their consultation, so licencees can have confidence that the amount being recovered is accurate and fair. 

Finally, we would like to see that Councils have sought to improve efficiencies or cut the internal cost of licences before passing these costs on to licencees. Businesses are not an endless source of funds that can withstand constant levying by local authorities, and we submit that there must be an attempt on behalf of regulatory bodies across the country to build confidence in their activities.

Thank you for the opportunity to provide feedback on your draft Annual Plan 2025/26. We would be happy to discuss any part of this submission in more detail, and to provide any assistance that you may require.

Ngā mihi nui

Marisa Bidois

Chief Executive

Wednesday, 16 April 2025

The Restaurant Association and Hospitality New Zealand are pleased to release the full report from the 2024 Hospitality Summit, providing a comprehensive roadmap for addressing the key challenges facing New Zealand’s hospitality industry.

Developed through extensive consultation with the hospitality sector, the Summit report identifies 65 practical and actionable solutions across seven key areas.

“We’re excited to officially release this report, and we’re focused on collaborating with each other alongside the government to progress these solutions.” says Marisa Bidois, Chief Executive of the Restaurant Association of New Zealand.

“The hospitality industry is a vital contributor to New Zealand’s economy, and is a key part of our tourism offering as a country. Now is the time for bold action to create a more resilient and thriving sector.”

Minister for Tourism and Hospitality Louise Upston says, “It’s fantastic to see the insights and ideas discussed at last year’s Hospitality Summit now presented as actionable solutions in this report.  I’m pleased to see that the Government’s focus on tourism growth aligns with the hospitality sector’s priorities.  The sector’s renowned hustle and hard work shines through in its response to this report, with industry leading the way on most recommendations.”

At the first meeting with Minister Upston, hospitality industry representatives were asked what ‘bold’ looks like for the sector. The Summit report provides a clear answer, focusing both on quick wins that will establish momentum, as well as long-term foundational changes needed to tackle more complex challenges.

“This is an opportunity to make meaningful, lasting changes that will benefit not just our industry, but New Zealand as a whole.” says Steve Armitage, Chief Executive of Hospitality New Zealand.

“We’re already seeing progress in a number of areas – such as the recent announcements of investments in attracting international business events, regional tourism and global tourism marketing – and we look forward to seeing real action come from this report.”

Some of the areas that Hospitality NZ and the Restaurant Association will work on together include specific actions covering data, skills and training, and mental health.

This includes developing an online platform to consolidate industry data, establishing clear career pathways from education into hospitality, and creating dedicated mental health resources for hospitality employees.

ENDS

RA Media contact: 

Becky Erwood

Restaurant Association of New Zealand

E: Becky@restaurantnz.co.nz 

P: 021 414 926

Note for Editors:

• A full copy of the 2024 Hospitality Summit Report, Serving Success: Opportunities for the New Zealand Hospitality Industry, is available here.