"We did not give the money. But suddenly, I grabbed the machete," Mr Singh said.
Mr Gupta said his friend grabbed the front of the machete, cutting his thumb, then pushed the offender backwards while Mr Gupta came out from behind the counter.
"He realised it wasn't going to happen today so he just ran away," Mr Gupta said.
The attempted robbery happened on Arapuni St in Putaruru, about 50km north-west of Rotorua.
Medics treated the Mr Singh at the scene for a minor hand injury.
The offender is believed to be in his teens or early 20s and is described as short and stocky, 168cm tall. He was wearing a sleeveless black jacket, black cap and white shoes. He was last seen running onto Glenshea St.
Police want anyone who saw or heard anything suspicious in the area to contact Putaruru Police on 07 883 8199.
Information can also be provided anonymously to the organisation Crimestoppers on 0800 555111.