For Rebecca and Dariush, owners of Cazador and San Ray, hospitality has always been about more than food. It is about connection: to people, to place and to purpose.

Their story begins more than three decades ago when Dariush’s parents opened Cazador, a small family-run restaurant with a focus on premium sustainable meat. When the couple took over in 2012, they carried forward the same principles that defined the business from the start – generosity, quality and integrity.

In 2024, they opened San Ray, a bright and modern bistro in Ponsonby serving breakfast, lunch and bistro classics cooked over coals and woodfire and inspired by the vibrant flavours of Southern California and Mexico. While the two venues have distinct personalities, their foundation is shared.

“Both are built on respect for ingredients, for people and for place,” says Rebecca. “We buy locally, cook simply and let the ingredients speak. We respect our guests and prioritise their experience above all else.”

That approach has seen Cazador recognised as one of the country’s top dining destinations, recently taking out Metro Restaurant of the Year Supreme Winner, along with Best Service, Best Dish, and Best Ode to the City. San Ray, meanwhile, was awarded Best Non-Alcoholic Selection, cementing its place among Auckland’s most thoughtful new eateries.

But for Rebecca, these accolades are not the goal, they are a reflection of something deeper. “We don’t do what we do for awards,” she says. “Seeing our team’s hard work recognised feels amazing, but it’s really about the people. It’s a celebration of their skill, dedication and hard graft.”

And people are at the centre of everything they do. Cazador has become a cornerstone of its neighbourhood, a place where staff greet regulars by name and make first-time diners feel at home.

“Cazador has been part of the community for decades,” Rebecca says. “There’s a strong sense of connection, from our regulars to neighbouring businesses. While we’re still new to Ponsonby, we love being part of the mix and getting to know the different personalities that make the area what it is.”

That focus on genuine hospitality, the sense of being “seen, not just served,” is what keeps people coming back.

In an industry often characterised by competition and pressure, Rebecca takes a different view. “I don’t see other restaurants as competitors. There’s no point being the last restaurant standing. We’re all part of something bigger, a community that thrives when we support one another.”

That belief in collaboration extends beyond the kitchen. As a family-owned business, Rebecca and Dariush know the importance of small operators supporting one another, from local growers to independent artisans. It is why they are enthusiastic about campaigns like American Express’ Shop Small, which encourages New Zealanders to spend with small, independent businesses.

“Shopping small keeps communities thriving,” Rebecca says. “Independent businesses bring character and connection to a city. Initiatives like Shop Small remind people that spending locally sustains creativity, craftsmanship and livelihoods – it really makes a difference.”

Operating two busy venues has also given them a close-up view of how dining habits are shifting. “People are dining out less often but choosing more carefully,” she notes. “They’re seeking real experiences, quality food, thoughtful service and genuine value. Authenticity and integrity matter more than ever.”

And that authenticity is something Cazador and San Ray have in abundance. Whether it’s the slow-cured charcuterie and wild game of Cazador or the bright, smoky energy of San Ray’s woodfired kitchen, both restaurants express a love for honest cooking and heartfelt hospitality.

The couple’s forward focus remains clear: refinement, not reinvention. “At Cazador, we’re always refining what we do,” says Rebecca. “At San Ray, there’s room for experimentation. Both venues are growing in their own way while staying true to who we are.”

For those dreaming of following a similar path, Rebecca’s advice is practical but encouraging. “Timing is key. Wait for the market to be ready before you make your move, then build something authentic. Be prepared to wait and work hard before you’re rewarded. It’s a long but very satisfying journey.”

That steady, community-minded philosophy is what continues to set them apart. In an industry built on connection, Cazador and San Ray remind us that success is not about being the last restaurant standing, it’s about standing together.

Cazador and San Ray are proud to be part of the American Express Shop Small campaign – a national movement founded by American Express to ignite passion for small businesses, call attention to the valuable contributions they make to their communities and the economy and encourage shoppers to support them. American Express has generated over $49 million in spend to local businesses through Shop Small in New Zealand from 2020-2024.

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Shop Small runs from 1 October through 9 November. Learn more at the Shop Small website.

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Gerrick Numan, Mille Design Studio

The Restaurant Design Academy helps operators move on from the two bad options often presented to them…

When opening or renovating a venue, operators face an impossible choice.

Option one: Hire a designer. Budget $15,000 to $50,000 for fees alone. Then discover the real cost – designers who specify $800 custom furniture when $200 commercial-grade works better. $4,000 European lighting that looks stunning but customers would’ve been happy with a $200 local light. Imported tiles that photograph beautifully but can’t survive a Saturday night rush.

The design fees are just the beginning. The specifications are where budgets truly explode. Not to mention the layout means you need an extra person working every shift. 

Option two: DIY it yourself. Save the fees, risk everything else. No experience with spatial planning? Hope you get the flow right. Never created construction drawings? Pray contractors understand your sketches. Don’t know compliance requirements? Discover them when the council rejects your plans – or worse, after you’ve built.

Many operators who try DIY end up hiring a designer anyway, now with less time and more desperation. Premium rates, rushed decisions, compromised results.

The hidden costs of design awards

Here’s what operators discover too late: designers don’t run venues. They’ve never built a roster, paid wages and desperately tried to get labour down from 46%. They don’t stand at the pass watching tickets pile up because the kitchen layout creates bottlenecks.

They don’t know that poor street presence can cost you 30% of potential walk-in revenue. That the wrong entry flow makes customers hesitate, turn around, keep walking. That table placement affects labour costs – inefficient layouts require extra staff just to cover the same number of covers.

Designers optimise for awards, aesthetics and portfolio shots. Operators need venues that make money.
I’ve seen it repeatedly: the stunning open kitchen that looks incredible but requires two extra staff during service. The “feature” bar that reduces seating capacity by four tables – $80,000+ in annual revenue sacrificed for aesthetics. The impressive entrance that’s beautiful but doesn’t pull people in from the street.

When specifications blow budgets

The $40,000 design fee seemed manageable. Then the quotes arrived.

• Custom timber tables: $45,000. The designer insisted they were “essential to the concept.” Commercial-grade alternatives that last longer and look just as good? $12,000.
• Equipment with custom panels: $38,000. A professional machine that actually works better? $18,000.
• Imported Italian tiles throughout: $65,000. Local alternatives with the same aesthetic? $12,000.
• Statement pendant lights at $3,000 each.
• Designer chairs at $1,200 per seat.
• Designer-specified materials throughout: $200,000 over original budget. Every finish, every fixture, every piece of equipment chosen for visual impact, not operational reality or budget constraints.

Here’s what they don’t tell you: customers don’t love your venue because of $800 chairs or imported tiles. They love it because it feels right. Because the flow works. Because the atmosphere makes them want to stay. You can create a venue customers love without the designer price tag.

By the time operators realise what’s happening, they’re locked in. Contractors hired, materials ordered, opening date announced. The only option is to somehow find the money or compromise on elements that actually matter.

The compliance disasters

Then there’s what gets missed entirely when you DIY.

I’ve watched operators discover $100,000 in compliance costs after leases were signed and construction started. Ventilation requirements miscalculated. Accessibility standards overlooked. Fire egress poorly planned. Grease trap specifications wrong.

They didn’t think about what happens when an inspector walks through. When council audits your kitchen. When you need council sign-off and everything’s already built.

What’s actually needed

The problem isn’t that designers exist or that DIY is impossible. The problem is the missing middle ground. Operators need the skills to translate their operational knowledge into professional documentation. Not 4 year design degrees – just quick to learn technical skills. How to develop a concept that creates the atmosphere customers love. How to play around in 3D using simple software. How to model layouts that optimise flow and reduce labour. How to create drawings contractors take seriously. How to choose materials that look great but don’t explode budgets. How to change the design on the fly to make sure you stay on budget.

Skills that bridge the gap between expensive dependency and risky DIY.

Operators like Sean from Parade Burgers, Bodega Deli and Rosalia’s Pizza, Betty from Saigon 60’s, Jay from Lowbrow, Josh and Brody from Jo Bros and Loco Bros have proven this works. They design their own venues, and projects, save $20,000 to $100,000+ per project, and create spaces customers genuinely love – because they understand what actually matters during service.

A different approach

After designing 500+ venues through Millé Hospitality Design Studio, and owning four venues myself, I built the Restaurant Design Academy to teach this system. The same approach behind those projects, now accessible to operators who want control without the risk and budget blow outs.

Restaurant Association members receive special access and pricing:  landing.restaurantdesignacademy.com

Not everyone needs to design their own venues. But every operator should know it’s possible.

We’re welcoming the Government’s move to review hospitality regulations with a view to simplify regulations and reduce costs for operators.

The Government has launched a comprehensive review of hospitality regulations, responding to years of industry concerns about overly complex, inconsistent, and costly compliance requirements.

The Hospitality Sector Review, led by the Ministry for Regulation, will examine the rules affecting restaurants, bars, cafes, food stalls, food trucks, catering businesses, and hotels—with the goal of cutting red tape while maintaining standards.

A review the industry has been calling for

The Restaurant Association welcomes the announcement – it reflects the concerns and priorities raised directly by hospitality operators. We’ve been asking for this regulatory review since the 2024 Hospitality Summit, and it’s pleasing to see the government has heard our voice.

We have a unique opportunity to support a comprehensive look at the red tape holding our industry back, and expect a strong set of recommendations that will support hospitality’s growth into the future.

What’s being examined

The review will assess whether current hospitality regulations are necessary, cost-effective, and actually fit for purpose. Specifically, the Ministry will look at whether rules are:

• Necessary and worth the cost they impose on businesses
• Effective, efficient, and proportionate to real risks
• Adaptable enough to evolve with the industry
• Genuinely easy to comply with
• Aligned with good regulatory practice

It’s an approach that could lead to meaningful change across the sector.

What this review could deliver

If done well, this review could deliver real benefits:

• Simpler compliance processes
• Consistency across councils so you’re not dealing with different interpretations in different regions
• Lower costs from streamlined requirements and less time spent on paperwork
• Room for innovation without unnecessary regulatory barriers
• A level playing field across the food sector

Consultation open

The Government is also asking for direct feedback from the industry and we encourage members to share their views. This is a genuine opportunity to tell decision-makers about the specific regulatory issues that impact your business. The information gathered through submissions will directly inform the review’s priorities and recommendations.

If you want to contribute:

• Submissions close: 12 November 2025 at 23:59
• Business owner portal: Make a submission here
• Guidance resource: Download the submission guide (PDF)

Think about the compliance requirements that cost you the most time or money, where you’ve experienced inconsistency between different councils, or rules that feel outdated or unnecessarily complex. Specific examples and real numbers from your business will help make the case for change.

We’ll keep sharing the industry’s voice through our own engagement

The Restaurant Association will continue engaging closely with Ministers throughout this process as we aim to ensure the next phase of reform delivers tangible benefits to hospitality businesses.

This is a significant step forward for the sector. After years of navigating increasingly complex regulations while dealing with unprecedented challenges, there’s now a real opportunity to create a regulatory environment that supports businesses rather than burdening them.

The review’s final report is due to Ministers by April 2026.

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Other information:

• View the Government’s announcement about the regulations review
• View the Minister for Food Safety’s announcement about food safety review
• Review the Association’s media announcement about the review

Hospitality industry hospitality report released by the Restaurant Association.

New Zealand’s hospitality industry has reached a significant milestone, posting record annual sales of $15.99 billion in the year ending June 2025, according to the Restaurant Association’s 2025 Hospitality Report.

Behind that headline figure lies a more complex reality – one with consumer spending changes, food costs rises, and operational pressures that are squeezing margins. Every dollar of that 1.4 per cent sales growth has been hard-won. It’s been earned against substantial cost increases that continue to apply pressure across the sector.

How different segments are faring

• Cafés and restaurants—traditionally the heart of the industry—reached $7.8 billion in sales but grew by only 0.3 per cent, highlighting the delicate balancing act between rising costs and customer price sensitivity.
• Takeaway food services lead with $4.4 billion in sales for year ending June 2025, up 3.2 per cent—reflecting shifts in consumer behaviour toward more affordable dining options.
• Catering reached $1.3 billion in sales, up 2.2 per cent, showing steady post-pandemic recovery.
• Pubs, taverns and bars recorded $2.1 billion in sales, up 1.7 per cent.

The cost crunch

Food price inflation reached 4.6 per cent in the year to June 2025—nearly double the general inflation rate of 2.7 per cent. At the same time, households are dealing with rising rates, insurance premiums, rents, and everyday living costs. And when budgets tighten, dining out is often one of the first expenses to go.

While the Reserve Bank’s recent OCR cut to 2.5 per cent signals potential relief on the horizon, operators report they’re yet to see meaningful change in customer spending patterns at this stage.

A tale of two-speed economy

The report highlights New Zealand’s two-speed economy, with export-driven and tourism-focused regions leading the recovery, while major cities remain subdued.

Export-driven and tourism-focused regions are leading the charge. Nelson posted standout growth of 15.1 per cent, with Queenstown-Lakes close behind at 14.2 per cent.

Meanwhile, major city centres continue to struggle. Auckland and Wellington CBDs are still facing office occupancy rates of 35–40 per cent below pre-pandemic levels. In the larger cities, suburban venues are driving growth.

Tourism: a silver lining

International tourism remains one of the sector’s bright spots. The year to June 2025 saw 3.38 million visitor arrivals, with spending up 9.2 per cent to $12.2 billion. International visitor spending still sits below pre-COVID levels, meaning there’s still ground to recover.

The workforce challenge

Hospitality employment hit a record 146,300 in 2024. Operators report an easing of staffing pressures, however the shortage of skilled kitchen and senior front-of-house staff continues.

The 2025 Remuneration Survey revealed labour costs now average 40 per cent—the highest on record—adding to the challenges of increased other key operational costs.

Operators are responding creatively: simplifying menus to improve efficiency, cross-training staff for greater flexibility, and investing more heavily in training and professional development to retain talent.

Reasons for optimism

Despite the challenges, there is genuine optimism as we head towards 2026. Lower interest rates should eventually boost household cashflow, while resilient regional performance and strong tourism recovery demonstrate the sector’s underlying strength.

New Zealanders still value hospitality experiences as affordable luxuries. Our venues remain central to how people connect, celebrate and share life’s moments. By adapting to today’s pressures and preparing for tomorrow’s opportunities, hospitality will continue to serve as the cornerstone of our communities.

For operators, the message is clear: the path forward requires agility, innovation, and a willingness to embrace new ways of working. Those who can navigate these choppy waters stand to benefit as economic conditions gradually improve.

Restaurant Association members can download the full free electronic copy of the 2025 Hospitality Report by clicking here (Not a member yet? Find out why you should join). The Report can also be purchased here.

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Restaurant Association in the media talking about the 2025 Hospitality Report:

• Evolution rather than growth’: Restaurant Association shares its 2025 Hospitality industry snapshot – NZ Herald
• Hospitality spend surges in some small regions, but lacklustre in bigger centers – Stuff
• Restaurant Association warns cost pressures squeezing hospitality profits – NZ Herald
• “Margins are tighter than ever”: Hospo struggles despite record high revenue – NewstalkZB
• Restaurant Association warns rising costs hitting profits – RNZ
• 1News 15 October (7.00mins into episode)
• Breakfast – interview with Marisa Bidois 15 October (57mins into episode)
• ThreeNews 15 October
• Nelson’s hospitality sector leads the country but margins remain tight – The Press
• Hard Work, Thin Rewards: Hospitality’s record $15.99 billion year – Hospitality Business

The Restaurant Association and Hospitality New Zealand the welcome the Government’s announcement that the hospitality industry will be the focus of the next Ministry of Regulation industry review.

Minister of Regulation, Hon David Seymour, and Minister of Tourism and Hospitality, Hon Louise Upston announced the review – which focuses on regulations that apply to restaurants, bars, cafes, food stalls at markets, food trucks, catering businesses and hotels – this morning.

Hospitality NZ Interim Chief Executive, Nick Keene, says, “We’re pleased to see recognition of the significant regulatory and compliance pressures on the hospitality sector, as well as the complicated nature of the legislation that governs how we operate.

“We know that across our respective memberships, the rules and regulations operators face place a strain on investment and employment decisions, and the ability to grow the sector as a whole.”

Similiarly, Restaurant Association Chief Executive, Marisa Bidois, says, “We’ve been jointly asking for this regulatory review since the 2024 Hospitality Summit, and it’s pleasing to see the government has heard our voice.”

“We have a unique opportunity to support a comprehensive look at the red tape holding our industry back, and expect a strong set of recommendations that will support hospitality’s growth into the future.”

Moving forward, the Restaurant Association and Hospitality NZ are looking forward to working with Ministers and the Ministry of Regulation team to support the review.

ENDS

For more information:

Sam MacKinnon                                         Jesse Thompson

Hospitality New Zealand                           Restaurant Association

E: media@hospitality.org.nz                   E: jesse@awhigroup.nz

M: 021 026 72441                                     M: 021 414 201

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For further information:

• Ministry for Regulation Hospitality Sector Review

New Zealand’s hospitality industry has posted record annual sales of $15.99 billion in the year ending June 2025, according to the Restaurant Association’s latest Hospitality Report.

But despite the top-line growth, the sector remains under significant strain. Operators report they are working harder than ever to maintain their businesses in the face of reduced discretionary spending, rising food prices, and escalating wage pressures.

“Every dollar of the 1.4 per cent sales growth over the past year has been earned against substantial cost increases that continue to pressure margins across the sector,” said Restaurant Association CEO Marisa Bidois.

Food price inflation rose 4.6 per cent in the year to June 2025, nearly double the general inflation rate of 2.7 per cent. Meanwhile, households are still grappling with rising rates, insurance, rents, and everyday living costs, with dining out often one of the first expenses to be cut.

While the Reserve Bank’s recent OCR cut to 2.5 per cent signals potential relief ahead, operators report no immediate change in consumer spending.

Regional analysis

The report highlights New Zealand’s two-speed economy, with export-driven and tourism-focused regions leading the recovery, while major cities remain subdued.

Nelson recorded standout growth of 15.1 per cent, followed closely by Queenstown-Lakes at 14.2 per cent.

Auckland and Wellington city centres continue to struggle, with office occupancy rates 35–40 per cent below pre-pandemic levels. “Suburban venues rather than CBD venues drove Auckland’s modest 1.2 per cent growth.”

International tourism is a bright spot. 3.38 million visitor arrivals were recorded in the year to June 2025 and visitor spending up 9.2 per cent to $12.2 billion. However, in real terms, international spend remains just 86 per cent of pre-COVID levels.

Sector breakdown

Takeaway food services: $4.4 billion in sales, up 3.2 per cent – benefitting from shifts in consumer behaviour.

Catering: $1.3 billion in sales, up 2.2 per cent, showing steady recovery post-pandemic.

Pubs, taverns and bars: $2.1 billion in sales, up 1.7 per cent.

Cafés and restaurants: $7.8 billion in sales, up only 0.3 per cent, highlighting the ongoing challenge of balancing rising costs with customer price resistance.

Workforce and wage pressures

Hospitality employment reached a record 146,300 in 2024, but the shortage of skilled kitchen and senior front-of-house staff continues to drive wage inflation. The 2025 Remuneration Survey revealed an average labour cost of 40 per cent – the highest on record – adding to the already heavy burden of rising ingredient and operating costs.

Many operators are responding with strategies such as simplifying menus, cross-training staff, and investing in training and professional development.

Permanent changes, policy needs, and future outlook

The Association warns that changes in consumer behaviour may represent permanent shifts, requiring operators to rethink business models and embrace greater efficiency, technology, and customer engagement.

“Hospitality cannot simply pass costs on to customers. We need supportive policy settings, including immigration pathways aligned with industry needs, investment in major events that drive visitation, and initiatives to bring people back into our city centres,” Bidois said.

Despite the challenges, the report points to genuine reasons for optimism. Lower interest rates should eventually boost household cashflow, while resilient regional performance and strong tourism recovery highlight the sector’s enduring potential.

“New Zealanders still value hospitality experiences as affordable luxuries. Our venues remain central to how people connect, celebrate and share life’s moments. “By adapting to today’s pressures and preparing for tomorrow’s opportunities, hospitality will continue to serve as the cornerstone of our communities,” Bidois said.

The Restaurant Association is thrilled to announce a new partnership with Eat Choice – an app and online directory that bridges the gap between restaurants and diners with specific dietary needs.

This collaboration represents an exciting opportunity for our members to connect with a significant and often underserved segment of the dining market. By registering your establishment on Eat Choice, you’ll tap into a growing community of customers actively searching for venues that accommodate their dietary preferences.

The hospitality landscape is evolving, and dietary inclusivity is no longer optional – it’s a competitive advantage:

• 1 in 4 Kiwis follow restricted diets for many different reasons –  Religious, Lifestyle, Health, or Medical
• It’s estimated 10 – 20% of revenue is lost due to not catering to niche diners
• The gluten free industry alone is growing 9% yearly
• Niche diners are loyal and share locations with their wider network.

What Eat Choice Offers

Eat Choice simplifies the search process for diners following gluten-free, vegan, halal, kosher, dairy-free, and other dietary requirements. The platform allows users to filter by their specific needs and discover new venues with confidence.

For restaurant owners, listing on Eat Choice means:

• Increased visibility among a targeted, motivated audience
• The ability to showcase your dietary offerings and menu accommodations
• Connection with customers who struggle to find suitable dining options
• Building a reputation as an inclusive, accessible venue

What makes this partnership particularly valuable is that diners with dietary restrictions find a restaurant that caters to their needs, they bring friends, family, and colleagues.

These customers also tend to become vocal advocates. In an industry where word-of-mouth recommendations remain invaluable, catering to niche dietary needs can significantly amplify your marketing reach.

Join Eat Choice

Best of all? Take these steps to join Eat Choice. Enjoy complimentary concierge setup for a limited time – self-setup remains free indefinitely. Eat Choice operates on a model that benefits both diners and restaurants without creating financial barriers.

To list your establishment or learn more about how this partnership can benefit your business, check out Eat Choice’s partner information or contact us directly and we’ll answer any questions.

This is a chance to position your restaurant as inclusive, forward-thinking, and responsive to the diverse needs of modern diners.

October 2025

Tēnā koe,

Restaurant Association of New Zealand submission on the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill

The Restaurant Association of New Zealand (the Restaurant Association) welcomes the opportunity to provide feedback on the Retail Payment System (Ban on Merchant Surcharges) 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 does not support the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill. While we support the intent of making payments clearer and more affordable for consumers, we submit this bill will not achieve these goals without first addressing the underlying fees charged to merchants to accept payments. 

Commerce Commission interchange fee regulation

The Restaurant Association has been deeply engaged with the Commerce Commission’s work on interchange fee regulation. Throughout this engagement, we have stressed the importance of taking a holistic approach to reform — highlighting the need to address high, unpredictable fees charged by payment providers before businesses can lower or remove surcharges. 

While the Commerce Commission has taken action to reduce interchange fees, this does not take effect until 1 December 2025 and only sets a cap on interchange fees — it does not remove these costs entirely. While the benefits of a cap on interchange fees for merchants are intended to be passed on through a reduced overall merchant service fee, the interchange fee is only a portion of the amount charged to merchants. The full merchant service fee is not being capped — only the interchange fee portion of the merchant service fee, meaning businesses are still left with large fees that they will not be able to recuperate through surcharges if this bill is passed into law.

Further work is needed to ensure payment providers do not simply increase other fees paid by retailers to cover any shortfall in their income. As it stands, the ban on surcharges leaves businesses with three options: a blanket increase to the baseline price of their products, impacting all customers and removing the consumer’s ability to choose a payment method that does not incur a surcharge; restrict the use of certain payment methods, potentially limiting their customer base; or absorb these fees as a cost of doing business, eating into already slim profit margins (an average of four percent across the hospitality industry).

Cost to hospitality businesses 

The Restaurant Association has actively engaged with the Government to outline the pressures hospitality businesses face with fees imposed by payment providers. Our members were clear throughout consultation on changes to the retail payment system that if there was a way they could remove surcharging for certain card payments without having to absorb the costs themselves, they would do so. 

The cost of the current retail payment system varies widely for our members. While the average cost of merchant service fees per annum is between $10,000 and $20,000, some of our members are paying more than $90,000. Under the current system, 83 percent of those who responded to our member survey indicated they have a surcharge in place on their POS. 

When asked if they would need to increase their prices if the surcharge ban comes into effect, 78 percent said they would need to. We have included commentary from our members below to showcase why members would need to increase their prices:

“With the slim margins on offer in hospitality at the moment, we will have no choice but to up our prices to cover the fees. Although it is a small percentage of our revenue, we have had to absorb so many costs that we are left with no choice but to pass on this one. I feel like many will do the same and this unfairly penalises customers who pay using cash or EFTPOS. I think legislation targeting the actual beneficiaries of surcharges (i.e. the merchants) is a much fairer and meaningful solution.”

“We absorbed merchant fees for the first 2.5 years, then introduced a 1.5% charge. It helps but does not cover the cost of corporate or international cards, but also does not unduly punish locals. This new ban law is unfair, it puts the burden on us, the ones working so hard to deliver value — we have just heard from our bank BNZ merchant services, as to what our new fees will be, with no room to comment on how they are fairly or unfairly responding following the Commerce Commission’s interchange announcement.”

“We are currently maxed out at what we can charge customers and don’t feel we would be able to remain competitive if we were forced to increase our prices further.”

Hospitality businesses already experience small profit margins, with increasing costs of utilities and food. If the surcharge ban is implemented, they will have to decide whether to absorb the costs associated with merchant service fees or increase their prices, which could decrease their customer base and profit margins even further.

Assistance for businesses 

If the bill is passed, the Restaurant Association submits that further assistance for businesses should be implemented to reduce their burden and costs. This could be achieved through further reducing interchange fees, capping fees across the retail payment system, conducting centralised negotiations with payment system providers, and market monitoring. 

The most impactful assistance for businesses would be to further reduce or ban interchange fees charged to merchants to align with the surcharge ban. Another option would be to set caps for the fees charged to businesses across the merchant services and payment systems framework to ensure interchange fee reductions are not offset by fee increases elsewhere.

The Government could also conduct centralised negotiations with payment system providers to set maximum fees and encourage competition between payment providers. We would also recommend that as open-banking solutions are developed (e.g. BNZ’s Payap), direct updates should be provided to industry on options that allow them to bypass the cost of accepting payments.

Confirming types of payments banned  

We would like to see greater clarity around the types of payments covered under this bill explicitly mentioned in legislation. For example, many hospitality businesses use QR code systems which are an entirely contactless transaction method in which consumers order and pay from their table, with the transaction fully online. It is unclear if this payment method would be covered by the bill, given the customer is physically present at a restaurant or cafe, but places their order entirely online.

We also recommend clarifying that the ban on surcharging is only meant for surcharges related to payments. While we have had written confirmation from the Minister that public holiday surcharges will not be covered by this Bill, this should be made explicit in legislation.

Promoting understanding of our payments system 

The Restaurant Association submits that more education is needed for consumers and the general public to understand our retail payment system and why surcharging has existed. 

To date, it has been our business who have had to constantly explain that the fees they are charged by payment providers are the reason surcharges exist. While often uncomfortable conversations, they also lead to giving customers a choice between using a payment method that incurs a surcharge, or those that do not. 

Merchant fees will still exist for businesses and the decision to ban surcharges removes the awareness of consumers about if they are contributing to increasing costs for businesses. The below comments from our members highlight this issue. 

“This is yet another ‘hidden’ cost to the business which customers don’t see. There is no way around this expense, it has to be absorbed into the operation. If restaurants actually itemised a customer bill like tradies and contractors do, I think it would be eye opening for quite a few people to see what they are being charged for.”

“Currently it is a user pays system which makes the most sense. Even charging a surcharge doesn’t cover all of merchant fees, especially if you have a higher number of international tourists who usually pay by credit card which we pay a higher percentage for on merchant fees, well above the ‘recommended benchmark’ surcharges implied regularly in media by consumer watchdog, etc.”

We submit that there needs to be a single source of truth that both merchants and consumers can rely on. The Government itself has said surcharging “demonstrates how confusing the surcharging system is, not just for customers but for businesses too.”  It is crucial that the agencies receive adequate funding to undertake a broad-based education campaign for both merchants and consumers to reduce the burden small businesses are currently carrying.

Implementation Period 

The Restaurant Association does not support the one-month implementation period for the ban on merchant surcharges. As stated above, the reduced costs of the Commerce Commission’s interchange fee reductions for merchants are unlikely to manifest in full by the time the ban is in place. 

Our recommendation is that the Government would have been better off to wait for the reduced interchange fee decision to take effect and gather domestic, real time evidence to determine if there was still a need to regulate surcharges — and if so, in what form such regulation would take. The below comment from one of our members explains this thinking. 

“As a small hospitality operator, I strongly urge the Committee not to rush into a blanket ban on in-store card surcharges. The Commerce Commission’s interchange caps (phased in December 2025/May 2026) address the root cause of high merchant fees and should be implemented and independently measured for pass-through before any prohibition. In the meantime, require acquirers to publish merchant fee components, fund a short-term SME transition package, and allow audited, cost-reflective pass-throughs during the transition. A rushed ban risks higher menu prices, business failures and job losses in an already fragile sector — please pilot and measure outcomes first.”

We are also concerned that the Commerce Commission, working alongside industry bodies like ourselves,  will have limited time to provide adequate education and guidance to both businesses and consumers in this timeframe. The Restaurant Association is able to communicate directly with many hospitality businesses to support the distribution of updates, assistance and resources, however, we will need time to create marketing campaigns for both industry and consumers to promote understanding of the new system. 

Merchants will also need time to update their POS systems to remove any surcharge rules. For hospitality businesses, this may also include actions such as updating receipt templates and signage; reviewing split bills, bar tabs, and tips and finalising flows so no fee is added automatically. Many merchants, especially small businesses, will be relying heavily on terminal providers to conduct software updates and testing before they can make any of these changes. 

Relating to the above issue, we submit there must be a blanket ban on payment providers being able to charge merchants for switching off the surcharging on their payment machines. If there is a legal obligation on merchants to remove surcharges, it would be completely unreasonable for businesses to face yet another cost to remove these surcharges from payment machines. 

Thank you for the opportunity to provide feedback on the Retail Payment System (Ban on Merchant Surcharges) 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

Restaurant Association of New Zealand

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Read the content of the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill here.

View the Restaurant Association member survey on proposed merchant surcharge ban.

More submissions by the Restaurant Association can be accessed here.

The Restaurant Association’s series of AI tips for hospo are practical tips and real-world examples of how artificial intelligence can help you reclaim time, reduce admin, and keep your focus on what matters most: your customers.

Running a hospitality business is a constant balancing act. Between running the business, staff management, supplier emails, marketing, and customer service (and more!) there are never enough hours in the day. That’s why we’ve launched a 12-week series on AI Time Savers for Hospo. Each week we spotlight one small, practical way you can use AI in your business — no jargon, no big budgets, just tools and ideas you can start using straight away.

If you’re new to AI, platforms like Claude.ai or ChatGPT are free to try and can handle many of the tasks we’ll cover in this series.

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Check out our Week 1- Week 7 AI Tips for Hospo

Week 1 – What AI Can Do for You

Think of AI as a very fast junior assistant: it won’t always get everything right, but it can take the first pass at jobs that usually eat up your time. This article looks at 3 AI assistants, The Assistant, The Creator, The Strategist.

Check out the tip>>

Week 2 – Your AI Writing Assistant: Customer Communications Made Easy

Turn AI into your customer service copywriter. Use AI to work on one of your most time-consuming tasks: writing customer communications. Whether it’s responding to booking inquiries, handling complaints, or sending follow-up emails, good customer communication takes time to get right. AI excels at getting that tone just right — and doing it in seconds, not minutes.

Check out the tip>>

Week 3 – Menu Engineering Made Simple: Let AI Optimize Your Offerings

Turn AI into your menu consultant. Menu engineering — the art and science of designing your menu for maximum profitability — usually requires spreadsheets, complex calculations, and a lot of guesswork. But AI can analyse your sales data, spot patterns you might miss, and suggest changes that could boost both customer satisfaction and your profit margins.

Check out the tip>>

Week 4 – Your AI training coordinator: staff communication made simple

Turn AI into your staff training and communication assistant. How can AI help with staff communications – keeping your team informed, trained, and on the same page? AI can help you create consistent, clear internal staff communications that save you hours each week and ensure nothing gets lost in translation.

Check out the tip>>

Week 5 – Transform how you attract, screen, and select hospitality talent

When you’re competing for talent in a tight market, spending hours writing job ads that don’t convert, and sifting through applications that don’t match your needs isn’t the best use of your valuable time. We’ve seen candidates are already using AI to write better applications — shouldn’t you be using it to find better staff?

Check out the tip>>

Week 6 – Your AI admin assistant: Smarter supplier and invoice management

Catch costly mistakes and stay on top of supplier changes without the paperwork overwhelm. Price changes you didn’t notice until after you’d paid the invoice. Delivery discrepancies that cost you (or missing items). Admin tasks like tracking supplier changes and checking invoices aren’t glamorous — but we all know how important the tasks are. AI can help you stay on top of supplier management without it taking over your day.

Check out the tip>>

Week 7 – Your AI rostering assistant: smarter schedules in half the time

Turn your time-consuming admin task into a 15-minute job. While AI can’t build your roster automatically (yet), it can do some of the heavy thinking that makes rostering so time-consuming — analyzing patterns, suggesting optimisations, and flagging problems.

Check out the tip>>

The hospitality industry has provided strong feedback on the surcharge ban proposals. The proposal to ban merchant surcharges is part of the Retail Payment System (Ban on Surcharges) Amendment Bill. The Government introduced the Bill to Parliament in September 2025, passing it’s first reading on 16 September.

What the Bill Proposes

The Bill will amend the Retail Payment System Act 2022. It proposes to prohibit surcharges on all in-store EFTPOS, Visa and Mastercard payments. This applies to personal, business, domestic or foreign cards, and for all card forms including physical, digital, tokenised, and mobile wallets like Apple Pay.

As part of the consultation period for the Bill the Restaurant Association and Hospitality NZ surveyed their respective members for feedback. The Restaurant Association received nearly 300 responses, and the feedback was overwhelmingly clear. 83 per cent of the survey respondents currently have surcharges in place. 78 per cent indicated that they will look to review their prices if the ban proceeds.

Through the survey, members questioned why the legislative proposal targets small businesses in particular. Many respondents noted that customers generally recognise surcharging as a fee for the convenience of using their preferred payment method, and emphasised that businesses should have the right to decide whether to pass on these costs.

The consultation period has now closed, and we’ve submitted based on your feedback.

The Restaurant Association is continuing to raise awareness about the industry’s concerns through our advocacy work as well.

Next Steps

Parliament has sent the Bill to the Finance and Expenditure Committee. It’s expected to pass by May 2026, although the final details are still yet to be confirmed.

If members have additional feedback, please get in touch as we continue advocating on your behalf.

Essential Safety Guidance for Hospitality Venues

Hospitality venues are vibrant public spaces where people gather to eat, drink, and celebrate. While we want our venues to feel welcoming and safe, it’s important to be prepared for unlikely emergency situations.

The New Zealand Police have launched a national safety campaign called Escape. Hide. Tell, designed to help Kiwis know what to do during an armed offender incident in a crowded place.

As hospitality operators, you manage spaces where the public gathers—restaurants, bars, cafés, hotels, and event venues. Being prepared and ensuring your team knows how to respond in an emergency is a duty of care to staff and guests.

While armed offender incidents in crowded places are rare in New Zealand, having a plan can save lives.

The Three Simple Steps: Escape. Hide. Tell.

If an armed offender incident occurs, remember these three words:

1. ESCAPE – Move quickly and quietly away from danger, but only if it is safe to do so.
2. HIDE – Stay out of sight and silence your mobile phone.
3. TELL – Call Police by dialling 111 when it is safe to do so.

Our role in the campaign

Restaurant Association of New Zealand is proud to be part of the Crowded Place Strategy Group, which helped support the development of this important campaign. Hospitality venues play a vital role in community safety, and we’re committed to providing our members with the tools and resources they need to prepare.

Escape.Hide.Tell Toolkit

We’ve compiled a toolkit to help you and your team prepare, including:

• Trainers Guide explaining the Escape. Hide. Tell steps
• ESCAPE.HIDE.TELL. Conversation guide
• Social media tiles to share with your team and community
• Escape.Hide.Tell posters in 15 languages
• Links to official NZ Police Escape.Hide.Tell website

Taking Action

We encourage you to:

• Share this information with your team during staff meetings or briefings
• Display Escape. Hide. Tell information in staff areas
• Discuss emergency procedures as part of your venue’s safety planning
• Use the social tiles to raise awareness among your customers and community

While we hope you never need to use this knowledge, being prepared gives everyone confidence and could make all the difference in an emergency.

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Learn More

For more information about the campaign, visit the New Zealand Police website.

Shop Small is here! The nationwide campaign – back for its 6^th year – is designed to bring more guests through your doors and highlights the vital role small businesses, including hospitality venues, play in our communities.

Now’s the time to showcase your menu, your service and the unique experience only your venue can deliver.

Restaurant Association partner, Amex is hoping to send more customers your way through a special Shop Small offer. From 1 October to 9 November, eligible Amex Card Members who save the Shop Small offer to their card, will receive $5 back when they spend $10 or more at participating small businesses, up to five times.*

For hospitality businesses, Shop Small is more than a campaign — it’s a reminder that every dollar spent with a small business supports communities, livelihoods and the aspirations of business operators.

The Restaurant Association is proud to support Shop Small. “Small hospitality businesses are the beating heart of our communities – they bring people together, create local jobs and add so much vibrancy to our towns and cities. Initiatives like American Express’ Shop Small movement shine a light on their importance – and that of all small businesses – and help ensure they continue to thrive. We’re pleased to see American Express continuing to back the businesses that make our local communities unique” – Marisa Bidois, Chief Executive of the Restaurant Association of NZ.

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Visit the Shop Small website to learn more.

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*Terms and conditions apply and can be read here.