Expect to see a jump in the cost of eating and drinking out over and above the surcharges some outlets impose over Easter.
Hospitality New Zealand says owners are dealing with an increase in the minimum wage, higher insurance costs, and hikes in the price of beer, dairy produce and meat.
President Adam Cunningham says nearly half of all operators are paying themselves less than the minimum wage to keep their businesses going.
"Hospitality operators have generally tried to absorb the prices at their own detriment. If their business isn't healthy then our economy isn't healthy and we cannot continue to absorb these costs."
Mr Cunningham says small businesses no longer have much bargaining power with their suppliers.