May was a big month for eating out with the latest trade data from the Australian Bureau of Statistics showing the greatest monthly increase in restaurant turnover for two years.

Restaurant, café and catering turnover was 17.5% up on last year in May 2006.

Restaurant & Catering Australia chief executive officer John Hart said the strong result coincided with the announcement of the Federal Budget in May which included the announcement of tax cuts. He predicted the rise in dining out would continue into this month with the start of the new financial year and the tax cuts.

“The positive effect of awarding the tax cuts was obviously itself enough to get Australians in the dining mood’ said Hart.

“When the tax cuts take effect this week, we will see another increase in spending in restaurants with Australian consumers choosing to spend some of their additional take home pay on enjoying the fabulous food and service that restaurants offer.”

Hospitality and Services—including turnover in hotels and licensed clubs—was up 8.8% on last year, with total retail spending up 1.5%. Spending in restaurants and cafes accounts from nearly 40% of hospitality spending and 6% of all spending.