A new survey has been released that shows consumers are still spending up big at hospitality venues, revealing a new trend known as COLD dining — cost-of-living denial dining.
The research was conducted by Money.com.au, which saw the financial comparison platform survey 1,000 Australians according to gender, age, and location. Consumer spending data was also analysed using figures from the ABS Household Spending Indicator.
It may come as no surprise to some that gen Z (40 per cent) were the most likely to spend too much on takeaway and restaurant meals, followed by Millennials at 37 per cent. Generation X (26 per cent) and Boomers (21 per cent) were the least likely to splurge on food.
Consumers from Queensland and Victoria (34 per cent) had the highest spend followed by New South Wales (32 per cent), Western Australia (25 per cent), and South Australia (24 per cent), which could be attributed to venue access and proximity to major metropolitan hubs.
Finance Expert Sean Callery says dining out, purchasing takeaway, and ordering delivery has remained a priority for many Australians, as it feels like a “small indulgence” in the current climate.
“Aussies are indulging in cost-of-living denial dining,” he says. “They know they should cut back, but can’t resist dining out or buying takeout because it feels like… a social necessity or simply more convenient than cooking at home. Our survey found that overspending on dining out or takeaway is the second-worst financial habit reported. This tells us that for many Australians, the ease and enjoyment of dining out often takes priority over sticking to a budget.”
Australians have increased their household spend at cafes, restaurants, and hotels by 72 per cent over the past 4 years, according to ABS data, but growth slowed in 2024 to 4.3 per cent.
“Restaurant meal inflation was 3 per cent annually, while household spending on dining out grew slightly higher,” says Peter Drennan, Money.com.au research and data expert. “This suggests Australians aren’t just paying more due to price increases — they are actually dining out more often or splurging on higher-end meals.”
Overall, venues can cater to younger audiences by tailoring their menus to suit their needs. Running regular happy hour programs are a sure-fire strategy as well as the integration of specialty coffee and tea beverages to your drinks menu. Remaining agile is the key to success in the current climate.
