June 8, 2023
(press release)
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New Zealand’s foodservice profit sector is forecast to grow at a compound annual growth rate (CAGR) of 6.8% from NZD12.8 billion ($8.1 billion) in 2022 to NZD17.7 billion ($10.6 billion) in 2027, according to GlobalData, a leading data and analytics company. GlobalData’s report, ‘New Zealand – The Future of Foodservice to 2027’, reveals that full-service restaurant (FSR) remained the largest foodservice profit sector channel in 2022. Accounting for 35.5% of New Zealand’s total profit sector revenue in 2022, the channel grew at a marginal CAGR of 0.2% during 2017–22. During 2017–22, the foodservice profit sector revenue in New Zealand registered a negative CAGR of 0.1%. This decline was primarily driven by a decrease in the number of transactions. Despite these challenges, chain operators fared better than independent operators during the pandemic because of their greater financial stability and quick adaptation to changing consumer demands. To survive periods of lockdown, many operators diversified their product offerings with a focus on take-aways and deliveries. Savitha Kruttiventi, Consumer Analyst at GlobalData, comments: “The stringent COVID-19 protocols in 2020 and 2021, led to limited operational capabilities and restrictions on dine-in occasions. As a result, most operators in the foodservice profit sector shifted their focus towards delivery, take-away, and drive-thru services as crucial survival strategies during this challenging period. Moreover, in May 2022, the US-based food delivery app DoorDash made its entry into the New Zealand market, offering an additional option for consumers to access food delivery services, reflecting the changing landscape in the country.” The travel and pub, club & bar channels recorded declines in value sales at negative CAGRs of 7% and 5.2%, respectively, during 2017–22. This can be attributed to reduced tourist footfall and the implementation of lockdown restrictions at restaurants, cafés, and other outlets. Furthermore, increased health and safety concerns due to the pandemic among consumers resulted in a decline of dining out occasions, which negatively impacted the performance of the channels. According to the GlobalData forecasts, all channels are projected to register substantial growth during 2022–27, with travel channel set to record the strongest increase in value, at a CAGR of 14.3%. Savitha concludes: “With convenience, portability, and contactless payments becoming more and more important, operators are expected to increasingly shift towards technological innovations. Additionally, operators need to constantly innovate their menus with health-focused and quality dishes as the consumers’ inclination towards healthy and nutritious food options that are made with fresh and natural ingredients will be on the rise.”
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