Changing face of NZ eating
Grocery spend drops — are we witnessing the slow death of Kiwi home cooking?
Spending on dining out in New Zealand is increasing at record levels, with sales in the hospitality industry expanding 4.2 per cent in the year to March. But as the overall spend on dining out and takeaways continues to rise, spending on groceries is dropping.
According to Stats NZ, more than a quarter of all food spending in New Zealand is now spent at restaurants and on ready-to-eat meals such as takeaways.
About one-third of the pie — approximately 34 per cent — is spent on groceries, down from 39 per cent recorded in 2011.
The overall spend on groceries has been on a downward trend over the past five years, data from the Consumer Price Index shows.
New Zealanders spent a record $11.7 billion on dining out and takeaways in the year to March 31, according to the Restaurant Association, compared with $11.2b a year earlier.
Restaurants and cafes enjoyed the best growth in the year, with sales increasing 5.1 per cent, Stats NZ data shows. That represented a jump of $290 million in sales — three times that of the $79m by which the pubs, taverns and bars sector grew its revenue.
Kiwis were spending more across the hospitality industry, excluding the clubs sector.
Chand Sahrawat, who with her husband Sid, runs a number of successful Auckland restaurants including Cassia, Sidart and Sid at the French Cafe, said 10 years ago there weren’t many Asian or Indian restaurants in the big city.
“Now, we’ve moved away from just takeaways and people prefer to dine out.
“It’s more accessible to dine out. In Auckland especially, the price of houses has gone up so there’s a whole generation who would rather spend their money on going out to eat with friends and socialise rather than saving up to buy a mortgage.”
Restaurant Association chief executive Marisa Bidois said growth
Not everyone has the time to cook in the kitchen every evening.
Marisa Bidois, Restaurant Association chief executive
in the popularity of takeaways had led the industry over the past few years.
But more “subdued” growth of 2.6 per cent in the year to March could be attributed to the increase in popularity of Uber Eats.
“Growth was so significant for so many years that it reached a point that it needed to taper off at a point and that is what we have seen this year,” Bidois told the Herald.
“We feel there may also be some impact of Uber Eats and other businesses like them, making takeaway from your favourite restaurant more available than it used to be.”
The sector was still growing though with about 1000 more takeaway outlets compared with five years ago, taking the total to 6000.
About 18,590 businesses make up New Zealand’s hospitality industry; the number of businesses increased by 480 in the year to March, with most openings located in Auckland. There is now one hospitality business for every 267 people in New Zealand, and the industry employs 133,000 people, according to the report.
Bidois said the industry anticipated similar growth between 3 and 4 per cent next year.
“People are dining out at least one to three times a week on average in our survey, and I believe that if we looked at a wider population that would probably be even higher.
“People are time-poor and looking for options to feed our families that are more convenient and accessible; not everyone has the time to cook in the kitchen every evening or prepare lunches the day before, and I think that’s reflected in the growth and spend we see at restaurants and cafes,” she said.