New hospitality dining insights revealed

A report covering Australia’s hospitality industry has been released, with data confirming the trends expected to take over the sector this year.

Lightspeed’s State of the Industry Report is compiled from customer (2,004) and business surveys (1,004) answered by owners and decision-makers at bars, restaurants, and cafes in Australia.

“The report captures the nuances of how Australians are engaging with dining experiences,” said Nicole Buisson, Lightspeed commerce managing director, APAC. “At the same time, it examines how venues are adapting to economic pressures by diversifying revenue streams and leveraging technology to enhance efficiency and profitability.”

The report is divided into five sections: dining habits; emerging trends and strategies; managing rising costs; embracing tech; and challenges and growth in 2025.

Dining habits

Australians dined out an average of 41 times per year in 2024, which was an increase from 38 times in 2023. Interestingly, there’s not much difference when it comes to monthly spend at restaurants and cafes, with diners splashing out $116 at restaurants and $111 at cafes ($68 on food and $43 on coffee).

Delivery showed a 7 per cent year-on-year increase between 2023 and 2024, with customers ordering three times per month and spending $98. Takeaway was also on the up, increasing by 34 per cent in the last year. Australians picked up takeaway 4 times and spent $87 dollars per month.

On the trends front, the report found 40 per cent of customers opted for lower-priced menu items and 31 per cent chose to forgo sides and avoid premium dishes. 34 per cent opted to share main courses, and 25 per cent shortened the time they spent dining out. Drink orders were also down, with 29 per cent limiting beverages or not ordering drinks at all.

47 per cent of Australians were willing to tip a venue if they knew the money directly supported staff. The second most popular reason? Larger bills followed by local venues that are visited frequently and staff holding the payment device itself.

Trends and strategies

Dietary requirements and sustainable food sourcing were the two main touchpoints to come out of surveys issued to both consumers and business owners.

51 per cent of venues catered to dietary requirements and focused on sustainable ingredients, while 34 per cent of customers expected sustainable food options and 26 per cent wanted dietary options.

Venues also tipped alcohol-free beverages (47 per cent); vegan or plant-based (43 per cent); and fusion food (34 per cent) as areas of focus.

Overall, 1 in 4 customers had “no specific preferences” when it came to what they wanted from venues, which the report states could be related to a possible gap between innovation and demand.

Data showed venues updated their menus 53 times per year, depending on business type and annual revenue. Cafes made the most changes followed by bars and pubs, hotels, and restaurants. A venue that made between $750-1M annual revenue made 71 changes per year.

Impact of costs on businesses

Venues responded to rising food costs by upping prices, with one third increasing the price of dishes between 31-40 per cent in 2023. 2024 saw an average menu increase of 22 per cent, with 52 per cent of venues raising prices by 11-20 per cent.

In 2024, the impact of rising costs led some businesses to close or reduce hours (27 per cent); let go of staff (26 per cent); change menu items (41 per cent); and change or renegotiate with suppliers (41 per cent).

Diversification is key for future success, which has been proven by cafes, which generate twice as much revenue as restaurants from pre-packed meals.

Technology

Tech has become increasingly important for operators to succeed, with close to half of operators crediting technology with streamlining operations and helping staff deliver positive dining expereinces.

The role of data and insights provided by tech in decision-making grew to 37 per cent in 2024, which was up from 31 per cent in 2023.

Tech platforms are saving operators between 1.5-2 hours per day on tasks including inventory management, bookings, reporting, and online ordering.

Challenges and growth opportunities

Operators listed rising food and supply costs as the highest-ranking challenge followed by increased rent or property costs, staff shortages, changes to wages, shifts in dining preferences, competitors, workplace culture, and changes in immigration policies.

Restaurants and hotels were most concerned by staffing shortages and rising costs, while cafes listed rent and property as a top issue.

Overall, businesses are forecasted to grow by 31 per cent growth in 2025. Bars and pubs have the most positive numbers, showing 37 per cent and 22 per cent respectively, as well as businesses that own more than six venues, which are predicted to increase by 47 per cent.