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

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