ChatGPT · No location
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 are proposing for cafés and hospitality businesses
Your situation brings together four issues that are particularly important for a small café:
- Food and electricity costs: keeping input costs under control and protecting gross margins.
- Lower customer spending: maintaining demand, encouraging people to eat out and supporting household disposable income.
- Staffing costs: minimum wages, leave entitlements, KiwiSaver, training and the cost of employing a small team.
- Crime and security: preventing burglaries, protecting staff and customers, and getting effective police and insurance support.
The important distinction is between policies that directly reduce a café's costs and policies that might improve the wider economy but have a less certain effect on your takings.
The 2026 general election is scheduled for 7 November 2026. The comparison below looks at the announced policies of the main parties, including smaller parties with relevant economic proposals. These are campaign commitments, not guaranteed outcomes: implementation will depend on the election result, coalition agreements and legislation.
1. What the evidence says about the problems facing your café
There is good evidence that the pressures you describe are not simply individual business-management problems.
Hospitality industry conditions — 2026
43%
of surveyed operators reported lower revenue than the same quarter in 2025.
~⅔
said their business was less profitable.
3.1%
increase in restaurant meal and ready-to-eat food prices, year-on-year to June 2026.
7.2%
average power-price increase for small businesses that experienced a price change in the period measured in 2026.
Sources: Restaurant Association Q2 2026 Business Survey and Electricity Authority, August 2026. Restaurant Association Q2 DashboardData shows 6.8% increase to power bills across households and small businesses
A few other findings are important:
- Food costs were the biggest concern identified by hospitality operators, followed by reduced customer spending and wage costs. Restaurant Association Q2 Dashboard
- The Restaurant Association's 2025 report found that wage costs represented approximately 40% of revenue in its remuneration survey. 2025 Restaurant Association Hospitality Report
- The Electricity Authority found that network line charges accounted for 54% of the average small-business electricity price increase in the first half of 2026. Data shows 6.8% increase to power bills across households and small businesses
- A March 2025 Restaurant Association security survey documented theft, property damage, verbal abuse and concerns about police response times among hospitality operators. Safety and Security - 2025
There is also a useful independent government finding. The Ministry for Regulation's September 2026 hospitality review identified duplicated paperwork, slow licensing processes, complicated food-safety requirements and fees that can be disproportionate for smaller businesses. It made 24 recommendations for improvement. Hospitality review roadmap for a more productive sector
This provides a practical way to assess election promises: do they address these documented problems, and is there evidence that the proposed intervention will actually work?
2. What the political parties are proposing
National
New Zealand National Party
National's approach centres on reducing compliance costs, encouraging business investment and making employment easier.
Relevant proposals and existing measures:
- Retain Investment Boost, which allows businesses to immediately deduct an additional 20% of eligible new productive asset costs.
- Introduce a First Employee Support Package to help small businesses navigate payroll, employment agreements, tax, ACC and leave requirements.
- Create a single government information service using the New Zealand Business Number.
- Review the compulsory GST registration threshold, currently $60,000.
- Simplify health and safety guidance and employment dispute procedures.
- Continue its tougher retail-crime approach, including stronger trespass and enforcement measures.
How this could affect your café
Investment Boost could help if you need a new commercial fridge, coffee machine, oven or other eligible equipment. However, it is a tax deduction, not a grant: you still need the cash to purchase the equipment.
Simpler employment administration could reduce the time you spend managing staff paperwork.
National's crime approach may appeal if your main concern is deterring repeat offenders. Its measures include stronger enforcement and expanded powers relating to retail crime.
Evidence and limitations
The 20% Investment Boost is an existing measure, rather than just a campaign promise. Its practical benefit depends on whether you have taxable income, make eligible investments and can finance the purchase.
The proposed First Employee Support Package has a plausible administrative benefit, but its eventual savings for a small café have not yet been independently demonstrated.
National's small-business proposals are documented in its 47-point plan. National’s plan to support Small BusinessesNational’s plan to support Small BusinessesRetail Crime
Policy: National's 47-point small-business plan.
Labour
New Zealand Labour Party
Labour's approach places considerable emphasis on cash flow, targeted investment support and grocery-market competition.
Relevant proposals:
- Require large businesses and government to pay qualifying small-business invoices within 15 days.
- Increase the immediate low-value asset write-off threshold from $1,000 to $10,000 for businesses with annual revenue below $10 million, from July 2027.
- Raise the compulsory GST registration threshold from $60,000 to $80,000, from July 2028.
- Require supermarket wholesale operations to be separated from retail operations.
- Give the Commerce Commission stronger powers to investigate excessive prices and unfair supplier practices.
- Introduce a 15% target for government procurement from small businesses, according to its broader small-business programme.
How this could affect your café
The $10,000 asset write-off could be useful when replacing an oven, refrigerator or other equipment.
The GST proposal could reduce administration for businesses approaching the current threshold. However, if your café is already GST-registered, the change is unlikely to provide a direct financial benefit.
The supermarket competition proposals are relevant to food affordability, but there is an important distinction: cheaper supermarket groceries do not necessarily translate into cheaper wholesale ingredients for cafés.
Evidence and limitations
Labour says its small-business package will cost $1.56 billion over four years, funded by refocusing Investment Boost.
Its case for targeted investment support includes an Inland Revenue survey in which 53% of respondents said Investment Boost had not affected their 2025 investment decisions. This is evidence about the existing scheme's reported influence, not proof that Labour's proposed alternative will generate the promised level of additional investment.
The Commerce Commission's June 2026 grocery report found that Woolworths and Foodstuffs still controlled more than 80% of the national grocery market. That supports the case for examining competition, although it does not establish that wholesale restructuring will lower café ingredient costs. Labour's Small Business Action PlanComCom releases state of grocery competition reportFairer Grocery PricesElection policy tracker: what the parties are promising
Policy: Labour's Small Business Action Plan.
ACT
ACT New Zealand
ACT's approach focuses on reducing employment obligations and regulatory intervention.
Relevant proposals:
- Pause annual increases to the adult minimum wage.
- Introduce a training wage at 60% of the adult minimum wage for eligible under-20 workers during their first 12 months with an employer.
- Allow protected negotiations for consensual employment exits.
- Require personal grievance proceedings to be lodged within three months of the grievance being raised.
- Make union-fee payroll deductions voluntary.
- Allow deductions for productive software and digital investment.
ACT has also supported stronger security powers, including expanded powers for trained security guards and a proposed minimum three-year sentence for a third burglary conviction.
How this could affect your café
If wages are one of your largest expenses, ACT's employment policies could change your staffing costs and the financial risks of hiring.
However, the training wage would only apply to qualifying younger employees. It would not reduce wages across your entire team.
The security proposals may be relevant after a break-in, particularly if you employ security personnel or operate in an area experiencing repeat offending.
Evidence and limitations
There is a genuine trade-off to consider. Lower employment costs could make it easier to recruit, but wage restraint could also limit the spending power of some customers.
ACT's proposals are policy commitments, not independently demonstrated estimates of how much a typical café would save.
Its official policy is available here: ACT – Backing Small Business. Its crime positions are summarised by Retail NZ's 2026 retail crime policy comparison. ACT New ZealandRetail CrimeOctober AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses
Green Party
Green Party of Aotearoa New Zealand
The Greens place more emphasis on energy-market reform, local economic development, fair wages and stronger competition regulation.
Relevant proposals:
- Establish Kiwipower, a publicly owned electricity generation company.
- Expand renewable energy and community-owned power.
- Offer zero-interest clean-energy loans for solar and battery installations.
- Keep the company tax rate at 28% for SMEs while increasing it for the largest corporations.
- Introduce stronger competition measures against concentrated markets, including supermarkets and energy companies.
- Abolish the training wage and increase support for apprentices.
- Support stronger minimum-wage protections.
How this could affect your café
The electricity proposals are particularly relevant if you own your premises or can invest in solar panels and battery storage.
More renewable generation and a public electricity company could potentially improve long-term electricity affordability and security.
The supermarket competition proposals could also benefit consumers and potentially improve food-market competition.
However, the energy transition would take time. A new generation company does not automatically mean your next electricity bill will fall.
Higher minimum-wage settings could increase your payroll costs, although they may also support the purchasing power of your customers.
Evidence and limitations
The Electricity Authority's 2026 data confirms that power costs have risen substantially for many small businesses. This establishes the problem, but not that the Greens' proposed solution would produce a particular reduction in your café's electricity bill.
The Greens' position on small-business tax is relatively clear: the 28% company rate would remain for SMEs, rather than rise alongside the rate proposed for the largest corporations.
Sources: Green Party energy policy and Green Party 2026 manifesto. Data shows 6.8% increase to power bills across households and small businessesGreen Party launches plan to cut power bills and take power back from the big energy companiesManifesto 20262026 General Election Policies: What they could mean for businesses | New Zealand
New Zealand First
New Zealand First
New Zealand First has put forward a particularly direct company-tax proposal.
Relevant proposals:
- Reduce company tax from 28% to 20% for businesses with annual turnover below $30 million.
- Establish a Future Fund of up to $100 billion for long-term infrastructure.
- Support additional electricity generation and changes to the electricity market.
- Merge BNZ and Kiwibank into a larger Crown-owned bank intended to support businesses and the wider economy.
- Strengthen enforcement against organised criminal networks and stolen-goods markets.
- Increase the minimum wage and Working for Families support.
How this could affect your café
The proposed company-tax reduction could be significant if your café operates through a limited company and earns taxable profits.
For example:
Illustrative company-tax comparison
Assuming $100,000 taxable company profit, before any other adjustments.
Current 28% rate
$28,000
Tax payable
Proposed 20% rate
$20,000
Tax payable
ChatGPT can make mistakes. Check important info.
Captured 2 November 2026 · shown as ChatGPT gave it, not a verified account