Tauranga hospitality businesses say increased pay rates will not help fill restaurant and cafe management roles.

The comments come after the Restaurant Association and Hospitality New Zealand warned the Government of a severe shortage of cafe and restaurant managers.

However, the Ministry of Business, Innovation and Employment has rejected industry calls to place restaurant and cafe managers on the country's Immediate Skills Shortage List.

Instead, the Government said businesses would be able to fill the roles if they increased pay rates.

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Restaurant Association chief executive Marisa Bidois said Bay of Plenty businesses were struggling the most from a shortage in

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