The hospitality sector continues to face significant challenges as company insolvencies rise across New Zealand. In August 2024, 261 businesses went into insolvency, a sharp increase from 192 in August 2023, with 200 companies entering liquidation. While the construction and property sectors account for a large share of these failures, the impact on hospitality is particularly concerning.
Cafés, restaurants, pubs, and takeaway food businesses are among the most affected. By the end of August 2024, 143 hospitality businesses had been placed in liquidation, up from 106 in the same period last year. This rise underscores the pressures of rising costs, slow customer demand, and staff shortages, which continue to pose challenges.
Credit defaults in hospitality, particularly in pubs, taverns, and bars, have also increased by 41% year-on-year.
With over 30,000 registered hospitality companies across the country, representing 4% of all businesses, the sector’s resilience is being tested. Despite these challenges, there are encouraging signs of adaptation and reasons to be optimistic for the busy summer season ahead