Despite economic pressures, Australians visited restaurants and bars more regularly in 2024, according to a wide-ranging report from Lightspeed Commerce Inc., the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, which revealed that green trends and a sense of optimism are on the rise for the hospitality sector in 2025. Lightspeed’s Hospitality Insights and Dining Dynamics Report set out to understand sentiment and key trends across the industry, including the rise of vegan and alcohol-free options, tipping culture, and the evolving role of technology. It also highlights a potential expansion in the hospitality sector for 2025, with restaurants, bars and cafes forecasting growth of, on average, 31%.
The report – based on surveys of more than 2,000 consumers and over 1,000 decision makers at Australian restaurants, bars, and cafes – highlights how economic realities, sustainability priorities, and technological innovation are reshaping Australia’s hospitality industry.
Balancing budgets and bites
Despite cost-of-living pressures, dining out remains a cherished activity for Australians. In 2024, Australians visited restaurants, on average, 41 times and bars 28 times (69 total), comfortably higher than in 2023, which saw them visit 38 and 23 times respectively (61 total).
Younger Australians (16-24) lead the pack, dining out an average of 72 times annually (including a further 45 visits to bars), while high-income earners ($130,001+) indicated they allocate, on average, $166 per month to restaurant visits. While Australians increased the frequency of their visits to venues in 2024, there were also trends that indicated the impact of economic pressures:
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31% of diners skipped premium dishes to save costs;
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34% shared meals to reduce spending.
Meanwhile, over half (53%) of the restaurants, bars and cafes surveyed raised menu prices in 2024, with an average increase of 22%. Operators continue to face significant challenges, including rising supply costs (47%) and staff shortages (31%). That said, venues are feeling optimistic about 2025. On average, restaurants, bars, and cafes are anticipating 31% growth.
“Through this report, we set out to understand the challenges and opportunities, trends and talking points, experiences and expectations amongst a hospitality industry that adds so much value to Australia economically, culturally and socially,” Nicole Buisson, Managing Director for APAC at Lightspeed, commented. “These expectations are not just centered on food and service quality, but also everything from guest experience to sustainability initiatives, which are important to attract and retain customers. Serving excellent food and drinks is essential, but businesses should also consider embracing the ethical practices that consumers demand today.”
Catering to dietary needs and embracing sustainability
Sustainability and varying dietary needs are increasingly influencing both consumer preferences and business strategies. One in three (34%) Australians want venues to prioritise sustainable food sourcing, and hospitality operators are taking note. Many venues also plan to offer vegan options and non-alcoholic beverages.
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51% of venues plan to prioritise sustainably-sourced produce in 2025, up from 30% in 2024;
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51% of venues plan to cater to dietary requirements in 2025, up from 26% in 2024;
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43% of venues plan to offer vegan or plant-based dishes in 2025, up from 31% in 2024;
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47% of venues plan to offer more non-alcoholic options in 2025, up from 21% in 2024;
Buisson adds, “Australian diners care about more than just great food – they’re looking for venues that share their values. Whether it’s locally sourced ingredients or menu options that cater to different dietary needs, businesses that embrace these priorities can be more likely to connect with their customers. Offering excellent food and drinks is still key, but showing a commitment to ethical and sustainable practices can make a difference in today’s competitive market.”
A tip on tipping
Tipping culture in Australia remains less prevalent than in other markets like the US, for example. In 2024, 68% of diners reported not tipping at all during their dining experiences, reflecting a combination of financial pressures and/or cultural norms.
Diners suggested they would be more likely to tip if it was clear where the tip went, with 47% suggesting they’d be more inclined to do so if they knew 100% went to staff. Respondents are similarly as likely to tip for a larger bill at a restaurant (or fine dining) on special occasions (46%), while 35% are likely to tip for a smaller bill at a familiar spot they visit regularly like a café or local pub.
Operators highlighted a stronger tendency for diners to tip when explicitly informed that the amount goes directly to staff, such as in venues offering transparent tipping systems. Higher-income diners ($90,000+) were the most likely to leave tips, though even this group reported lower frequency compared to the previous year.
Harnessing technology and innovation for growth
Technology continues to play a critical role in helping Australian hospitality businesses navigate operational challenges and drive growth. The report highlights how venues are leveraging digital tools to improve efficiency, manage costs, and enhance customer experiences.
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47% of operators reported that technology has significantly improved operational efficiency;
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41% cited enhanced customer service as a result of streamlining operations;
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Over a third said access to technology and data has improved overall business performance (37%) and increased revenue driven by better operational management (36%).
As operators increasingly embrace technology, they are focusing on implementing solutions that address rising costs and changing customer preferences, ensuring these tools align with their business needs and priorities.
Beyond operational improvements, venues are actively using technology and creativity to meet evolving customer preferences:
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43% are leveraging online trends to design eye-catching, shareable menu items that appeal to digital-savvy consumers;
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42% of venues are creating exclusive, time-limited offerings to attract diners seeking unique experiences;
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41% of venues are tailoring portions and menu options to cater to the growing solo dining trend;
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41% of operators are introducing upgrades to dishes, such as luxury ingredients, to appeal to diverse customer segments and boost revenue.
Methodology
The consumer survey was conducted by Censuswide, among a sample of 2,004 consumers in Australia, aged 16+. Wave one (2023) sampled 1,003 consumers in Australia between 08.12.2023 – 13.12.2023. Wave two (2024) sampled 1,001 consumers in Australia between 22.11.2024 – 27.11.2024. The business survey was conducted by Censuswide, among a sample of 1,004 owners and decision makers at restaurants, bars, and cafes in Australia, aged 18+. Wave one (2023) sampled 504 owners or decision makers between 11.12.2023 – 20.12.2023, while wave two (2024) sampled 500 owners or decision makers between 22.11.2024 – 28.11.2024.
