EXECUTIVE SUMMARY
INTRODUCTION
Restaurants are feeling the squeeze, and it's coming from three directions according to the
second annual AUT University and Restaurant Association of New Zealand Hospitality
Report.
The quivering global economy and Christchurch’s earthquakes have had a big effect in the past year,
and if they weren't enough, consumers are spending less on dining out.
The report shows the restaurant sector is facing a very flat period with little growth in revenues, outlets
and employment numbers.
Data has shown a flat prediction for incoming tourist numbers and hotel new builds. Essentially it looks
like the sector is in the middle of a five to 10 year period of stagnation. In addition, the Rugby World
Cup was not the bonanza that the industry hoped for; restaurants either did exceptionally well or
business was down as regular diners allocated funds to see rugby games and not enjoy fine food and
wine.
However, the outlook for restaurants is cautiously optimistic. Despite consumers spending less on
dining out, restaurant numbers grew by more than 1.6%, to 14,455. That’s a sign that operators are
confident about the future.
The expectation is that prices will remain steady and competitive. Eating out will continue to offer
guests value for money as restaurateurs encourage public back in their eateries. Service levels will rise
as business owners maximise their competitive points of difference.
More choice for diners is good for the industry. We have a highly competitive environment and one
that may encourage a cautious diner to eat out more - exciting news for both the industry and the
customer. Restaurants know what their customers want; food and beverage that reflects value for
money, enhanced service levels, and more importantly customers want to know about their restaurants
so communication on multiple levels to build loyal clientele will give consumers the incentives needed
to eat out more.
The full version of the 2012 Hospitality Report is available electronically from the Restaurant
Association (info@restaurantnz.co.nz; 0800 737 827). It is available to Restaurant Association
members at no cost and the general industry, with no affiliations to AUT or the Restaurant Association,
for $150.00.
EXECUTIVE SUMMARYINTRODUCTIONRestaurants are feeling the squeeze, and it's coming from three directions according to thesecond annual AUT University and Restaurant Association of New Zealand HospitalityReport.The quivering global economy and Christchurch’s earthquakes have had a big effect in the past year,and if they weren't enough, consumers are spending less on dining out.The report shows the restaurant sector is facing a very flat period with little growth in revenues, outletsand employment numbers.Data has shown a flat prediction for incoming tourist numbers and hotel new builds. Essentially it lookslike the sector is in the middle of a five to 10 year period of stagnation. In addition, the Rugby WorldCup was not the bonanza that the industry hoped for; restaurants either did exceptionally well orbusiness was down as regular diners allocated funds to see rugby games and not enjoy fine food andwine.However, the outlook for restaurants is cautiously optimistic. Despite consumers spending less ondining out, restaurant numbers grew by more than 1.6%, to 14,455. That’s a sign that operators areconfident about the future.The expectation is that prices will remain steady and competitive. Eating out will continue to offerguests value for money as restaurateurs encourage public back in their eateries. Service levels will riseas business owners maximise their competitive points of difference.More choice for diners is good for the industry. We have a highly competitive environment and onethat may encourage a cautious diner to eat out more - exciting news for both the industry and thecustomer. Restaurants know what their customers want; food and beverage that reflects value formoney, enhanced service levels, and more importantly customers want to know about their restaurantsso communication on multiple levels to build loyal clientele will give consumers the incentives neededto eat out more.The full version of the 2012 Hospitality Report is available electronically from the RestaurantAssociation (info@restaurantnz.co.nz; 0800 737 827). It is available to Restaurant Associationmembers at no cost and the general industry, with no affiliations to AUT or the Restaurant Association,for $150.00.
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