Hospitality Prices on the rise

Hospitality Prices on the rise

Hospitality customers can expect increases in menu prices over April, this message from Hospitality New Zealand President Adam Cunningham. Hospitality operators, particularly small businesses, are being pressured by increases in input costs. With the minimum wage going up from 1 April, increased insurance costs, breweries increasing beer prices and continued high prices for dairy and meat products hospitality businesses have no choice but to pass on these increases, or put their businesses at risk.

While hospitality businesses hate putting prices up they do not have an option, said Mr Cunningham. A reluctance to increase prices in tough economic times has eroded hospitality business profitability. A recent Hospitality New Zealand survey of its membership showed that 48% of hospitality owner/operators paid themselves less than then minimum wage last year.

This situation is not sustainable and prices will have to increase or more business failures will occur, with the consequent loss of jobs.

Small businesses have little or no bargaining power with their suppliers and no longer have the capacity to absorb the ongoing cost increases they face, concluded Mr Cunningham.

About the Hospitality New Zealand

Hospitality New Zealand was established in 1902 as the United Licensed Victuallers Association. It is a voluntary trade organisation of like-minded businesses and operators in the hospitality sector that is governed by a Board of nine elected members and owned by its members. Hospitality New Zealand continues to be the voice of Hospitality, representing over 2,400 hospitality businesses, providing significant advocacy work, expert advice and a range of services to its members at both local and national levels. See www.hospitalitynz.org.nz.

ENDS

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