While the annual food price increases released today show that food prices reached a 14-year high of 10.1 percent, Stats NZ also revealed that restaurant meals and ready-to-eat food prices increased by only 7.5 percent in the past year, below the average food price increase.
“Restaurants are being hit by both labour and food price increases with more price hikes and wage increases pending. Restaurants are in the process of increasing prices. Some have already done so but others are taking a more cautious approach,” expressed Marisa Bidois, CEO of the Restaurant Association.
“Customers like certainty so businesses are trying to lock in food prices for the coming months to avoid fluctuations in pricing. This means working closely with suppliers and focused menu planning. Diners can expect to see reductions in the number of items on a menu and some price increases”
Bidois noted that it’s been a challenging couple of years and now hospitality venues need to recoup some of the lost revenue.
“With cost of living going up, hospitality venues are trying as much as they can to keep pricing under control. The hospitality industry is not a duopoly, so the competition makes it a very challenging playing field.”