That meant wages paid to staff often failed to match inflation or fell, or staff levels were cut - with obvious implications for service standards.
"There are lots of levels of that. Many places will get a migrant worker, who may not be in tune with the culture but is prepared to work for minimum wage.
"But that's a false economy - I think the public wants service and they're prepared to pay for service. When times are hard and you go out you want a great experience."
Hospitality expert and former Auckland restaurateur Rebecca Jones said established restaurants were better placed to weather the downturn without compromising standards.
"But especially in small operations the owners would perhaps start working longer hours and have fewer staff working. It's a really fine line."
Ms Jones said people without adequate hospitality experience often bought restaurants or cafes and "cut and slashed" until the establishment was ruined.
A Herald survey of those dining in Auckland's Viaduct yesterday afternoon found most were content with both service and prices at restaurants - although there were a few gripes.
Friends Melanie O'Callaghan and Sarah Brodie eat out about twice a week, and said they tended to stick with places they could trust to deliver.
Ms O'Callaghan said it took an hour and a half to receive her main course when she went for lunch recently at one Viaduct restaurant - and she wouldn't be back.
"If you're waiting that long when you're on a lunch break and you're late back, it's not good. Especially if you've only ordered a main."
Fellow diner Sandra Croft said that the hard reality for restaurants was that diners wouldn't tolerate steady increases.
"There's one restaurant that every time we've gone there the prices have gone up, and we won't go back.
"Bread used to be $8 - for ciabatta and oil to go with it - and when we went two weeks ago bread was $12, which is ridiculous."
