Kiwis prefer traditional menus and ordering options over QR codes and robots according to new research.
Kiwis prefer traditional menus and ordering options over QR codes and robots according to new research.
Nearly 40% of Kiwis spent less on dining out last year as the cost of living continued to bite.
The Restaurant Association’s 2025 Consumer Dining Insights report has revealed that 38% of respondents spent less on dining out in 2024, while 41% maintained their usual spending.
Just 21% of respondentssaid they had increased spending on dining out.
The key reasons for spending less included dining out less often (80%) and menu price increases (26%), while 19% were specifically choosing to spend less when eating out.
A key concern for those in the industry will be the frequency with which patrons dine out, with the proportion of respondents dining out one to three times per week declining a further 7% in 2024.
That means a 15% decline in those eating out one to three times a week since 2022.
Meanwhile, those eating one to two times a month or less than once a month have continued to grow.
Restaurant Association chief executive Marisa Bidois said the hospitality industry is a barometer for the economy.
Restaurant Association chief executive Marisa Bidois said the wider economy was creating a more challenging trading environment for hospitality businesses.
“The last year has been, extremely in many cases, one of the toughest years on record, even tougher than the Covid years,” Bidois said.
“I think of our industry like a barometer for the economy, if people are feeling confident, they’ll be out spending more money in our businesses.”
The average spend by an individual dining out dropped from $114 in 2023 to $112 last year.
Higher-income households spent roughly $300 weekly on eating out compared to $50 for those on lower incomes.
There is also a clear generational divide in the data, with those under 30 spending roughly a third to half per week of those in older age groups.
Delivery interest down
The report also revealed a declining interest in delivery services across all regions.
A combined 32% of respondents are planning to use food delivery services less frequently in the year ahead, indicating a returning preference for in-person dining experiences.
The trend is particularly pronounced in Wellington and Canterbury.
Bidois said the declining demand was down to two factors; a growing interest in the full dining experience, and the added cost of delivery.
It correlates directly with spending patterns, as those with greater spending tend to prioritise delivery and other convenience features.
Ordering via third-party apps such as Uber Eats and Doordash is not as popular, with most respondents preferring to use a venue’s own website or app (40%).
Traditional phone calls and texts to establishments also remain relevant, with 27% of respondents preferring those options.
Third-party apps only represent 14% of takeaway orders for survey respondents, with those in the sub-25 age group heavily preferring them (50%).
People over tech
Contactless payment options continue to receive high ratings across all demographics, but QR code menus and app-based ordering are more readily embraced by younger generations.
Interestingly, only 3% of the respondents to the report said the use of technology was important to them when choosing a venue.
Bidois said consumers were still getting used to the new technology, but patrons were continuing to seek experiences that include human connection.
“Being hospitable, creating that atmosphere, it’s part of the charm and it’s part of what attracts people to our businesses.”
“With the adoption of new ways of doing things, there is often some pushback in the beginning but as time goes on some people prefer that kind of method of interaction.”
She reiterated that while technology is a tool to be utilised for the industry, the human connection is still its critical point of difference.
Bidois spoke of a person who had told her their only human interaction over the weekend was when they ordered their coffee.
“That really struck me and stayed with me. Our businesses are often the heart of our communities, they’re where people meet and interact. That kind of thing, I don’t think that that’s going to disappear quickly.”
Overall, most respondents intend to dine out the same amount (69%) and utilise food delivery services the same (61%) in the year ahead, suggesting those in the hospitality industry need to innovate or offer new value propositions to grow in 2025.
Bidois said the key takeaway from the report was that diners are still seeking great experiences.
“What is clear from this report is that hospitality remains a business built on human connection. From our perspective in terms of the industry, I think there’s a real opportunity to ensure that we are delivering on those expectations.”
There were just under 500 responses to the Consumer Dining Survey by the Restaurant Association.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
