Revenue in the hospitality sector's reached a new record high, but many operators are seeing profit margins reach a new record low. 

Restaurant Association data shows sales have risen 1.4% in the past year. 

Tourism regions like Nelson and Queenstown-Lakes are seeing strong growth but central Auckland and Wellington are still doing it tough. 

Association Chief Executive Marisa Bidois told Mike Hosking tourism is continuing to drive much of the growth. 

She says CBDs are struggling, as foot traffic hasn't got back to pre-Covid levels yet. 

Bidois says any rise in revenue is being eroded by rising costs. 

She says food costs are up 4.6%, wages continue to climb, and insurance and rent have gone up as well. 

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