Rising costs, cautious consumers, and a tight labour market have created the perfect storm for New Zealand’s hospitality industry. For the first time, operators are reporting that wage costs have reached 40%, marking a critical threshold that’s forcing businesses to rethink their operational strategies.

Rising costs, cautious consumers, and a tight labour market have created the perfect storm for New Zealand’s hospitality industry. The Restaurant Association’s Remuneration Report, based on data from 13,945 employees across more than 100 positions, reveals an industry doing its best to move forward despite unprecedented challenges. But the numbers tell a sobering story about an sector stretched to its limits.

The 40% wage cost watershed

The average hourly rate across the industry now sits at $27.84, with salaried roles averaging $83,415. While wages continue to grow, the pace has slowed dramatically – hourly rates increased by just 2.54% in 2025 compared to 2024, and salaries by only 0.50%.

More concerning is what this means for business viability. When wage costs hit 40% of revenue and food costs typically account for another 28-35%, operators are left with combined costs consuming up to 75% of total revenue before considering rent, utilities, and other fixed expenses. For businesses operating on 3-5% net profit margins, this leaves virtually no buffer for unexpected costs or economic downturns.

Clear pathways despite pressure

Despite financial constraints, the industry maintains clear progression pathways. Kitchen hierarchies show defined advancement opportunities, from Kitchen Hand ($25.03/hour) through Commis Chef ($26.83), Chef de Partie ($29.63), Sous Chef ($32.11), Head Chef ($36.81), to Executive Chef ($46.62/hour or $114,879 for salaried positions).

Front-of-house progression follows a similar pattern, starting with basic service roles earning around $25.08-$25.83/hour, progressing through Wait Staff ($25.52), Duty Manager ($29.16), Maitre D’ ($29.97), and up to Restaurant Manager ($32.96).

At the top end, management positions command strong compensation, reflecting their critical importance in navigating current challenges. General Managers now average $133,208/annum, Financial Controllers $136,008, and Directors of Sales and Marketing $138,415 – roles that saw some of the largest pay increases this year.

Regional markets tell different stories

Auckland dominates the sector, employing 35.8% of surveyed staff and reporting the second-highest average hourly wage ($28.35), though with the widest wage variance ($7.50). This market dominance creates upward pressure on wages nationally.

Queenstown/Southern Lakes leads with the highest average hourly rate ($28.51), reflecting the competitive nature of this high-turnover tourism market. Canterbury/Central South Island, home to 11.9% of surveyed employees, offers an overall average rate of $27.66/hour, while Wellington sits just below the national average at $27.65.

Regional role differences reveal interesting market dynamics. Head Chefs earn the most in Hawke’s Bay ($41.51), while Bar Managers in Gisborne/East Cape lead the country at $38.50/hour.

The strategic response

In light of rising wage costs, industry leaders are implementing various strategies to maintain viability. Productivity improvements through better staff scheduling and cross-training are becoming essential. Technology investments to streamline operations, menu changes that improve gross margins, and careful pricing adjustments are all being considered as operators seek to balance sustainability with competitiveness.

As the report indicates, operators are faced with daily choices and trade-offs. The industry’s commitment to supporting staff remains strong despite challenging conditions, but finding the right balance between fair pay, sustainable operations, and strong team culture has never been more critical.

The key takeaways are clear: wage growth continues but at a slower pace, the 40% wage cost benchmark demands strategic response, role progression remains a powerful retention tool, and regional variations require tailored approaches. Success will depend on how effectively operators can manage these competing pressures while maintaining the people-driven culture that defines New Zealand’s hospitality industry.

---

More information

• An Executive Summary for the 2025 Remuneration Survey Report can be downloaded here.

• The full 2025 Remuneration Report, including detailed regional breakdowns, sector analysis, and year-on-year comparisons, is available here.

Hear it from the artists themselves.

In this video series by Restaurant Association key partner, OneMusic, five talented New Zealand musicians share their thoughts on the value of music, the realities of making a living as an artist, and why fair licensing fees matter.

Click on each of the images to view the videos, or click on PLAY.

---

---

A OneMusic licence gives you the permission you need to play our music in your business, and support the people that make the music you love. Find out more about OneMusic here.

We’re excited to introduce a new partnership between the Restaurant Association and Feed the Feed, giving members exclusive access to affordable, high-quality social media content — designed specifically for the hospitality industry.

Feed the Feed is a pared-back, user-friendly content creation company that works with cafes and restaurants across the country. They specialise in creating authentic, attractive photo and video content tailored for platforms like Instagram, Facebook, and TikTok — helping businesses like yours better connect with their customers online.

This partnership is launching with a pilot in Auckland Central — but we’re planning to roll it out to other regions soon. If you’re outside the pilot area and are keen to be included, we’d love to hear from you.

What’s on Offer

Choose the package that best suits your business — all customisable and offered at special RA member rates:

1. Feature Reel Package ($310) – Capture the vibe of your business

• One reel that showcases the essence, vibe, energy and experience of your venue
• 10 high quality stills for you to post on your social channels
• Tip sheet on posting

2. Stills package ($350) – For those who need photos

• 20 high quality stills for you post on your social
• One reel compiled from still images
• Tip sheet on posting

3. Custom package – Let us create a custom package for your needs

• Talk to us and we’ll get you a quote for what your particular business requires

These sessions are tailored to you — with flexible shoot styles and a focus on real, engaging content that works for your brand.

---

Social media is a powerful tool — but producing great content regularly can be time-consuming and expensive. This partnership makes it easier, more accessible, and more effective for hospitality businesses to stay visible and relevant online.

RA members also receive:

• Bonus content for early bookings in each pilot area
• The chance to be featured in our Spotlight Your Suburb campaign
• Access to Feed the Feed’s DIY Social Media for Hospo guide
• Regular tips to support your content strategy

If you’re in Auckland Central, we’ll be in your suburb over the month of July 2025 — spaces are limited. Get in touch now!

Interested, but not based in Auckland Central? Let us know! We’re collecting expressions of interest for future regions. Email us at info@restaurantnz.co.nz.

---

🔗 Learn more about Feed the Feed at www.feedthefeed.nz

Quiet periods can be genuinely stressful for hospitality businesses. The financial pressure of lower revenue, concerns about staff hours, and the nagging worry about whether things will pick up again. But with the right approach, quiet periods become powerful opportunities to build foundations that will serve you well when busy times return.

Invest in Your Team

When service is quieter, you have more bandwidth for staff development. Use this time to run training sessions that usually get squeezed out of busy schedules. Whether it’s wine education, new POS system training, food safety refreshers, or customer service workshops, your team will return to service sharper and more confident. Check out the Association’s training hub for inspiration, or consider bringing in external trainers or having senior staff share their expertise with newer team members.

Deep Clean and Refresh

Every hospitality business has that running list of tasks that get pushed aside during busy periods. Forced downtime is the perfect opportunity to tackle deep cleaning projects, equipment maintenance, and those small repairs that have been nagging at you. Strip down the kitchen for a thorough clean, reorganize storage areas, or finally get those scuffed walls touched up. Your customers will notice the difference when you reopen.

Menu Innovation Time

With less service pressure, you can experiment with new dishes, refine existing recipes, or completely overhaul sections of your menu. Test new suppliers, play with seasonal ingredients, or develop those signature dishes you’ve been thinking about. Document everything with photos for future marketing use, and get your team involved in the tasting and feedback process.

Content Creation Marathon

A quieter restaurant provides the perfect backdrop for creating marketing content. Photograph dishes in natural lighting, film behind-the-scenes videos, create recipe tutorials, or develop content that showcases your team’s personalities. Build up a bank of social media content that you can use throughout the year. This is also an ideal time to update your website, refresh your online menus, and ensure all your digital platforms are current.

Strengthen Your Network

Use the slower pace to reconnect with suppliers, local business owners, and industry contacts. These relationships often get neglected during busy periods but are crucial for long-term success. Check in with your regular suppliers, explore new partnerships, or simply catch up with fellow operators who might be dealing with similar challenges. Sometimes the best business opportunities come from unexpected conversations during quiet periods.

Plan Ahead

Review your booking systems, analyze recent sales data, plan upcoming promotions, or work on seasonal menu changes. This administrative work rarely gets the attention it deserves during busy service periods but can significantly impact your future success.

The Mindset Shift

The key to making quiet periods work is preparation and mindset. For instance, instead of seeing slower times as purely negative, view them as intensive development periods that ultimately make your business stronger. Keep a running list of projects and improvements so you’re ready to spring into action when things get quiet. Use the time to emerge stronger, more organized, and better prepared for whatever comes next. That’s a competitive advantage worth investing in during every quiet spell.

June 2025

Ringo Hora Workforce Development Council

Level 3, Tower B, 49-61 Tory Street,

Wellington

Tena koe,

Feedback on Proposed Draft Culinary Skills Standards from the Restaurant Association Training and Skills Development Advisory Group

Since 1972, the Restaurant Association has worked to off er 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.

We welcome the opportunity to provide feedback on the Culinary Skills Standard Drafts: this feedback has come from our Training and Skills Development Advisory Group made up of various members from different hospitality businesses across the motu.

In general, the feedback we have received is support of the proposed standards, and that these culinary standards will allow for flexible demonstration methods centred around principles instead of strict recipes, reflecting modern industry practices, and allowing for workplace-based training to be reflective of the workplace in which the student is working at. Feedback was positive about the mandatory inclusion of communication, teamwork and food safety.

Some of the advisory members also indicated that they thought all of the elective standards would be great for someone entering the industry, and wanted further clarification on what would happen if a student picks their electives for level 3 worth 40 credits, and then further down the track decide that they wanted to upskill in areas that they did not study for. They could see both sides of elective vs mandatory – mandatory provides the opportunity for general knowledge that helps the student decide which area they want to focus on in further study and qualification levels, and electives provide the opportunity to tailor learning to the workplace they currently work in and any current interests. However, they needed clarification as to what happens if a student wanted to do ALL the electives, would this be possible, and what would that entail?

Consensus was that Allergens needs to be included from level 3, and as a stand-alone mandatory standard, not as an elective or embedded into only some of the elective standards. This is to avoid inconsistent allergen coverage, risking student’s readiness for food service roles.

In the Food Safety standard, there is no explicit mention of temperature control, especially with deliveries, and would also be good for complying with the food control plan to be further elaborated to specifically state the “Know, Show, Do” framework.

One element that could be included specifically in Apply cookery techniques in a culinary environment under Core Cookery Techniques is knife skills. and that ‘Importance of mastering basic techniques for culinary success’ does not describe what those basic techniques are. Positive feedback was shared however that this standard is more flexible and caters to a wider variety of hospitality establishments and workplaces.

Thank you for the opportunity to provide this feedback and contribute constructively to the ongoing development of the Culinary Skills Standards.

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.