Customers are expecting more from their local hospitality, and it's forcing some older establishments to shut their doors.

The Auckland restaurant Hammerheads has been put into liquidation by Inland Revenue, who are chasing unpaid tax.

The Hospitality Association believes competition has forced some high-profile and much-respected venues to close their doors - and it's a nationwide trend.

Association chief executive Bruce Robertson says new hospitality businesses are opening up which are relevant, current and know what customers want.

"Businesses change and demand from the hospitality sector has changed. The consumer demand is different."

"New entrants are better meeting that demand than some of the older ones who perhaps haven't changed as much as they needed to meet the current trend."

The restaurant occupied a prime waterfront position on Tamaki Drive for more than 20 years.