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I run a café with a small team. Food and power costs are squeezing margins, customers are spending less, and we've experienced a break-in. I am considering my vote in the 2026 New Zealand general election. What would parties do to improve conditions for small hospitality businesses, and what evidence supports their plans?
2026 New Zealand election: what the parties mean for small cafés
For a small café, the election is about more than tax rates or headline economic growth. It is about whether you can keep food costs manageable, afford electricity, retain staff, attract customers and protect your premises without spending money you cannot spare.
I would assess the parties against five practical questions:
- Operating costs: What would they do about electricity, food supply costs, rent and business expenses?
- Tax and cash flow: Would they change tax, GST, depreciation or compliance costs?
- Staffing: Would they make employing people more affordable or flexible?
- Customer spending: What would they do to improve household disposable income and hospitality demand?
- Crime and security: What would they do about burglaries, repeat offending, policing and support for affected businesses?
An important distinction throughout: a policy announcement is not proof that it will work. I'll distinguish between policies already implemented, new promises, and evidence that supports or challenges their likely effects.
1. How serious are the pressures on hospitality?
There is good evidence that the difficulties you describe are affecting the wider New Zealand business sector, not just individual cafés.
New Zealand business conditions
80%
of businesses reported increased operating costs
58%
reported declining profitability
54%
reported lower revenue than a year earlier
57%
wanted to reduce operating costs or administration
MBIE research involving 2,508 New Zealand businesses, surveyed October–November 2025. Business health and motivations research
Hospitality-specific evidence is also important:
- The Restaurant Association reported that annual hospitality sales reached $15.99 billion in the year to June 2025, but growth was only 1.4%.
- Café and restaurant sales grew just 0.3%.
- Food price inflation was approximately 4.6–4.8%, depending on the measure reported.
- Labour costs represented around 40% of revenue in the Association's remuneration survey. Restaurant Association 2025 Hospitality ReportRestaurant Association’s 2025 Hospitality Report2025 Restaurant Association Hospitality Report
More recent evidence is particularly relevant. In the Restaurant Association's July 2026 Q2 dashboard, hospitality sales were up 1.2% year-on-year in June, but restaurant meal prices had risen 3.1%. That implies a reduction in the volume of hospitality purchases in real terms. Furthermore, 43% of surveyed operators reported lower revenue and approximately two-thirds reported lower profitability. Restaurant Association Q2 Dashboard
What this means: A policy that lowers your business costs is only half the equation. You also need customers to have enough disposable income to keep buying coffees, breakfasts, lunches and occasional treats.
2. What the main parties are proposing
The following comparison covers the seven parties with published or identifiable small-business policy positions: National, Labour, ACT, the Greens, New Zealand First, The Opportunity Party and Te Pāti Māori.
National
National Party
Main approach: reduce compliance, encourage investment and strengthen policing.
National's October 2026 47-point Small Business Plan includes:
- A First Employee Support Package to help new employers with payroll, employment agreements, tax and ACC.
- A single government information service so businesses do not repeatedly provide the same information to different agencies.
- Faster resolution of straightforward employment disputes.
- A review of the compulsory GST registration threshold, currently $60,000.
- Retention of Investment Boost, allowing an immediate 20% deduction on qualifying new business assets.
- Simpler seasonal employment arrangements and health and safety guidance. Small business backed with 47-point PlanNational’s plan to support Small Businesses
Electricity: National's nine-point energy plan focuses on increasing generation, encouraging competition, tackling lines charges and improving supply security. It proposes requiring electricity distributors to approve small-business and residential solar connections within two working days. Affordable power Kiwis can rely on
Crime: National supports stronger retail-crime enforcement, including longer trespass notices, on-the-spot fines and expanded powers for citizens' arrests involving mechanical restraints. It also points to its $480 million policing commitment and additional police recruitment. Retail Crime
What this could mean for your café:
- Less administrative work and potentially lower costs when hiring.
- Tax incentives for replacing ovens, refrigeration, coffee machines or other equipment.
- Potential longer-term electricity benefits from increased generation and competition.
- A stronger enforcement response to offending.
Evidence and limitations: Investment incentives can improve the economics of purchasing equipment, but the deduction is not a cash grant. You must still have the money to buy the equipment. National's proposed GST threshold review also does not guarantee an increase. More police and tougher enforcement do not automatically establish that your premises will be less likely to be burgled.
Labour
New Zealand Labour Party
Main approach: improve small-business cash flow, make investment easier and reduce household living costs.
Labour has published a particularly specific Small Business Action Plan.
Its proposals include:
- Requiring large businesses to pay small suppliers within 15 days for invoices under $25,000.
- Increasing the immediate asset write-off threshold from $1,000 to $10,000 for businesses with annual revenue below $10 million, from July 2027.
- Increasing the compulsory GST registration threshold from $60,000 to $80,000 from July 2028.
- Giving small businesses greater consideration in government procurement and policy development.
- Aiming to reduce paperwork and improve payment practices. Labour's Small Business Action PlanElection policy tracker: what the parties are promising
The package is costed by Labour at $1.56 billion over four years, funded by redirecting Investment Boost.
For your café, the equipment write-off is particularly relevant. Labour specifically uses the example of a café replacing an oven.
Its other proposals include:
- Opening up supermarket wholesale supply to increase competition and improve grocery prices.
- Making excessive pricing of essential goods and services illegal.
- A three-year fuel tax freeze.
- SolarSaver loans to support solar investment.
- Household cost-of-living measures intended to leave consumers with more money to spend. Labour's Cost of Living PlanLabour's 2026 Election Policies
What this could mean for your café:
- Faster payments if you supply larger businesses or government.
- Better cash flow when replacing equipment.
- Potentially cheaper ingredients if supermarket competition reforms work.
- Customers potentially having more disposable income.
Evidence and limitations: Faster payment requirements address a genuine cash-flow problem, but may not help much if your café mostly takes immediate card or cash payments from customers. The equipment write-off improves the timing of tax deductions rather than eliminating equipment costs. Grocery reforms could benefit food suppliers and independent retailers, but lower wholesale prices for cafés are not guaranteed.
Labour's proposal to increase compulsory employer KiwiSaver contributions progressively to 6% by 2032 is also worth factoring into your longer-term wage budget. Election policy tracker: what the parties are promising2026 General Election Policies: What they could mean for businesses | New Zealand
ACT
ACT New Zealand
Main approach: reduce employment costs, regulation and the risks associated with hiring.
ACT's September 2026 small-business package proposes:
- Freezing the adult minimum wage for three years.
- Introducing a training wage at 60% of the adult minimum wage for workers under 20 during their first 12 months with an employer.
- Allowing protected employment-exit negotiations.
- Shortening the time for personal grievance proceedings to be lodged.
- Making union-fee payroll deductions voluntary.
- Modernising tax deductions for software and digital investment. ACT New Zealand
ACT also supports the regulatory changes it has already pursued in government, including restoring 90-day trials and repealing Fair Pay Agreements.
What this could mean for your café:
- Potentially lower wage costs for employing young, inexperienced workers.
- Less administrative and legal uncertainty around employment disputes.
- Greater flexibility when adjusting staffing arrangements.
- Better tax treatment of digital investments, such as certain business software.
Evidence and limitations: Lower employment costs can make hiring more affordable, particularly for businesses with tight margins. However, freezing the minimum wage may also limit the income growth of lower-paid workers who are important customers for hospitality businesses.
The training wage is not a general discount on all employees. It has specific age and time restrictions.
Green Party
Green Party of Aotearoa New Zealand
Main approach: strengthen local businesses, address market concentration and improve affordability.
The Greens have some proposals particularly relevant to independent cafés and hospitality operators.
Their September 2026 city-centre policy proposes:
- Changing commercial rent reviews so they can reduce rents as well as increase them.
- Applying this to new and existing leases for businesses with turnover below $30 million.
- Allowing councils to auction leases on shops vacant for more than a year.
- Creating a low-cost tribunal for commercial lease disputes. Green Party announce plan for city centre vibrancy
The Greens also propose stronger supermarket competition measures and more intervention in electricity markets, including a publicly owned power company and increased investment in renewable energy. Manifesto 2026The main parties vying to form New Zealand's next government
Their employment policy takes a different approach from ACT's: they oppose the training wage and propose stronger support for apprentices and workers. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses
What this could mean for your café:
- More opportunities to negotiate a rent reduction when surrounding commercial rents fall.
- Potentially more vibrant shopping areas and increased foot traffic.
- A different approach to reducing electricity prices through public investment and competition reform.
- More support for training and workforce development.
Evidence and limitations: The rent proposal directly addresses a problem with commercial lease ratchet clauses, which can prevent rents falling when market conditions deteriorate. However, increased public ownership of electricity generation does not guarantee an immediate reduction in your power bill. Stronger employment standards could also increase your wage expenses.
New Zealand First
New Zealand First
Main approach: lower company tax and encourage business investment.
Its most significant small-business proposal is reducing company tax from 28% to 20% for companies with annual turnover below $30 million. Lowering Tax Rate for SMEs to 20%
The party estimates the initial annual fiscal cost at approximately $1 billion.
It also proposes:
- Increasing Working for Families support.
- Annual minimum wage increases over the next three years.
- Reforming the skilled work visa system. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small BusinessesOur Policy
What this could mean for your café:
If your café operates through a limited company, the lower company tax rate could leave more after-tax profit available for reinvestment, debt repayment or expansion.
Higher Working for Families payments could also improve the spending capacity of some households.
Important limitation: If you operate as a sole trader or partnership rather than a company, the proposed company tax reduction would not directly apply to your business income.
The party's claim that the tax cut would generate enough additional economic activity to cover its cost is a forecast, not an established outcome. A lower company tax rate does not directly reduce food or electricity prices.
The Opportunity Party (TOP)
The Opportunity Party
Main approach: improve productivity, innovation and the structure of the economy.
TOP's Breakthrough Economy policy focuses on:
- Supporting innovation and research and development.
- Improving access to research and development tax credits.
- Improving ACC settings for businesses.
- Reforming retail payment systems.
- Supporting businesses that deliver social and environmental benefits. Election 2026: What’s on Offer for Small Business?2026 General Election Policies: What they could mean for businesses | New Zealand
It also proposes a land-value tax as part of a wider tax restructuring programme. The main parties vying to form New Zealand's next government
What this could mean for your café:
There may be longer-term benefits from improved payment systems and productivity. However, its proposals are less directly targeted at everyday hospitality expenses such as food, power, wages and rent.
The land-value tax proposal is particularly important to investigate if you own your commercial premises or hold other land. The treatment of your specific property and any offsetting tax changes would matter.
Te Pāti Māori
Te Pāti Māori
Main approach: strengthen Māori economic development and redistribute economic opportunity.
Its economic development policies include:
- Support for Māori-owned businesses.
- Greater Māori participation in government procurement.
- Investment in Māori economic development and energy sovereignty.
- A proposed increase in company tax from 28% to 33%, alongside other tax changes. 2026 General Election Policies: What they could mean for businesses | New ZealandOctober AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses
What this could mean for your café:
There may be opportunities through procurement, Māori business development and community investment, particularly for Māori-owned hospitality businesses.
However, the proposed company tax increase would have a direct cost implication for incorporated cafés, if implemented.
Its wider tax and income redistribution policies could affect household spending, but the net effect on hospitality demand is uncertain.
3. Comparing the proposals against your actual problems
This is a practical comparison of the policy mechanisms, rather than a ranking of parties.
| Your problem | Relevant party proposals |
|---|---|
| Food and ingredient costs | Labour's supermarket wholesale reforms; Greens' competition reforms; NZ First's supermarket restructuring |
| Electricity costs | National's generation and competition reforms; Greens' public power investment; Labour's SolarSaver |
| Wages and staffing | ACT's training wage and minimum-wage freeze; National's employment simplification; Labour's apprenticeship support; Greens' worker and apprenticeship support; NZ First's minimum-wage increases |
| Rent | Greens' commercial rent reforms |
| Equipment costs | Labour's $10,000 write-off; National's Investment Boost |
| Cash flow and administration | Labour's payment rules and GST proposal; National's 47-point plan; ACT's regulatory reforms |
| Fewer customers | Labour's household cost-of-living measures; NZ First's Working for Families proposal; broader economic and employment policies from all parties |
| Break-ins and security | National's tougher retail-crime enforcement; Labour's opposition to expanded citizens' arrests; Greens' prevention and early-intervention approach |
One important point about food costs: The supermarket competition debate is relevant, but cafés are not simply supermarket shoppers. You may buy through specialist wholesalers, independent distributors and hospitality suppliers. Reforms aimed at supermarket wholesale access may not automatically improve your supplier prices.
Similarly, electricity market reforms often take years to influence wholesale supply and retail contracts. No party's announced plan should be treated as an immediate guarantee of cheaper commercial electricity.
4. What does the evidence say about electricity and crime?
These two issues deserve separate consideration because the effects of government policy can be difficult to measure.
Electricity: there is a genuine competition problem
The OECD's 2026 Economic Survey of New Zealand identifies significant structural problems in the electricity market.
Its findings include:
- Four large generator-retailers produce approximately 90% of New Zealand's electricity.
- Limited competition in wholesale electricity and price hedging markets creates barriers for smaller electricity retailers.
- More than 20 small retailers have exited the market since 2018, citing expensive hedging and squeezed margins. Towards a more affordable, secure and sustainable electricity system: OECD Economic Surveys: New Zealand 2026OECD Economic Surveys: New Zealand 2026 (EN)
This provides independent support for the argument that electricity market structure needs attention.
However, there are different possible solutions:
- National emphasises increasing generation and competition.
- The Greens favour greater public ownership and intervention.
- Labour emphasises household solar investment and action against excessive pricing.
- NZ First has proposed restructuring the major electricity companies.
The OECD evidence supports the need to improve market competition and supply security. It does not establish that any one party's proposed solution will necessarily produce cheaper café electricity.
Crime: prevention matters alongside enforcement
New Zealand Police estimates that retail crime costs retailers $2.6 billion annually. It also identifies the significant personal impact on business owners and employees. Retail crime and ram raidsRetail Crime Prevention Hub
There is some practical evidence supporting physical security measures.
For example, between September 2022 and September 2025, 1,135 stores affected by ram raids or aggravated robberies had security installations completed, with 4,506 security measures installed. Reduced violent crime
This supports investing in physical prevention, although it does not prove that any particular election policy will prevent burglaries.
The parties differ on the balance between enforcement and prevention:
| Party | General approach to retail crime |
|---|---|
| National | Stronger enforcement, trespass powers and police resources |
| Labour | Opposes expanded citizens' arrest powers; supports police and physical prevention |
| ACT | Stronger powers for shopkeepers and security guards, tougher repeat-burglary sentences |
| Greens | Community prevention and early intervention; opposes expanded citizens' arrests |
| NZ First | Targeting organised criminal networks and stolen-goods markets |
| Te Pāti Māori | Prevention, rehabilitation and community-led approaches |
| TOP | Evidence-based crime prevention |
These positions are summarised by Retail NZ's October 2026 election policy tracker. Retail Crime
For a café, I would distinguish between two things:
- Reducing the likelihood of another break-in: physical barriers, alarms, CCTV, lighting and environmental design.
- Reducing the likelihood of repeat offending: investigation, effective policing, prosecution and rehabilitation.
A policy addressing only one of these may leave part of your problem unresolved.
5. Which promises have the strongest supporting evidence?
It helps to separate three different types of evidence.
| Policy | Evidence supporting the approach | What remains uncertain |
|---|---|---|
| Labour's faster payment rules | Late payments create genuine cash-flow problems | Whether your café receives enough large-business invoices to benefit |
| Labour's equipment write-off | Immediate deductions improve the timing of tax relief | Whether it generates additional investment rather than subsidising planned purchases |
| National's Investment Boost | Lower effective investment costs can encourage capital spending | How much additional investment it generates |
| NZ First's company tax reduction | OECD research supports a relationship between corporate taxation and investment | Whether the growth generated offsets the revenue loss |
| Greens' commercial rent reform | Ratchet clauses can prevent rents falling when market rents decline | How landlords, rents and new leases respond |
| Electricity competition reforms | OECD evidence identifies structural competition problems | How quickly savings reach commercial customers |
| Stronger retail security | Police experience supports targeted physical security measures | The effect of particular enforcement proposals on repeat burglaries |
| Household income support | More disposable income can support consumer demand | How much additional income customers actually spend in cafés |
One particularly important distinction concerns tax reductions.
If your café is incorporated, a reduction in company tax could improve your after-tax profits. But if the business is making a loss, a lower company tax rate does not solve your immediate cash-flow problem.
Likewise, an asset deduction helps when you are investing, not necessarily when you are struggling to pay the electricity bill.
6. Questions I would put to every party before voting
Given the combination of pressures you describe, I would want clear answers to these questions:
Food and power
- What specific measures will reduce commercial electricity bills, rather than just household bills?
- How will supermarket competition reforms benefit independent hospitality suppliers?
- Will there be any practical assistance for businesses facing exceptionally high operating costs?
Employment and taxation
- How will your policies affect the total cost of employing a small team?
- Will your proposed tax changes benefit sole traders as well as companies?
- What immediate assistance is available to businesses that are profitable on paper but struggling with cash flow?
Customers
- How will your policies improve the disposable income of ordinary working households?
- What will you do to encourage domestic tourism and spending in local hospitality businesses?
Security
- What practical support is available for cafés that have already experienced burglaries?
- Will small hospitality businesses qualify for security grants?
- How will you measure whether your crime policies actually reduce repeat offending?
These questions are useful because parties can make broad claims about supporting business without explaining what an owner of a small café will actually receive.
7. Where to look before casting your vote
The election is scheduled for Saturday 7 November 2026, so these are the most useful primary and independent sources to check during the final campaign week.
- National – 47-point Small Business Plan
- Labour – Small Business Action Plan
- ACT – Small Business Policy
- Greens – 2026 Manifesto
- NZ First – SME Company Tax Policy
- The Opportunity Party – Policies
- Te Pāti Māori – Policies
- Restaurant Association – Hospitality Industry Research
- MBIE – Business Research
- Electricity Authority – Electricity Market Information
8. My suggested way of assessing the decision
Rather than looking at which party describes itself as most supportive of small businesses, I would look at how its policies affect the actual economics of your café.
For example, consider these five measures:
- Gross margin: Will the party's policies help reduce ingredient and electricity costs?
- Labour cost: Will employing your team become more or less expensive?
- Cash flow: Will you have more money available to pay suppliers, wages and rent?
- Customer demand: Will ordinary households have more money to spend on hospitality?
- Business security: Will you be better protected against another break-in?
You could even compare the parties using your own accounts. A 5% reduction in electricity costs might be worth more to your business than a tax concession you cannot use immediately. Equally, a modest improvement in customer demand could be worth more than several administrative changes.
My central observation: The biggest policy differences are not simply about whether parties support small business. They are about how they think a struggling business should be helped: through lower taxes, lower employment costs, stronger competition, rent protections, more household spending, or direct intervention in markets.
For a small hospitality operator, those differences have very practical consequences.
If you would like to take this one step further, I can build a café-specific election comparison using an illustrative small New Zealand café's annual turnover, food costs, electricity bill, wages, rent and company structure. That would show how each party's proposals could affect its finances, rather than relying on campaign promises alone.
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