Australia is renowned for the vibrancy, innovation and standard of its hospitality sector, with a multitude of venues adding so much to high streets, towns and entire cities nationwide. They’re where communities gather, where special occasions are held, and even where so many young Aussies find their first employment or forever career.
However, there have been challenges in recent years. The latest ABS stats show consumers are more stringent with their money when it comes to dining out as cost of living pressures continue. Against the backdrop of both ongoing economic uncertainty and the high quantity and quality of competition, venues must be as focused as ever on understanding and then providing the experience that guests value and return for. It’s essential for venues to focus not only on the quality of their food, but the overall experiences and trends that are shaping consumer habits and wants.
ALSO READ: Build big brand loyalty with these 5 simple tips
Lightspeed’s State of the Industry Report: Hospitality Insights and Dining Dynamics 2025 report, which surveyed thousands of consumers and businesses in Australia, sought to understand the current state of the sector, what consumers are looking for from venues, and how those venues can provide the value their guests are looking for. The report unearthed a host of important and evolving consumer trends that venues must be aware of, but here’s a handful.
Value-driven dining
While cost-of-living pressures have been a trending topic in Australia over recent years, our report reveals some promising signs. In 2024, Aussies dined out 41 times a year on average – an eight per cent year on year increase from 38 times in 2023. What’s more, we went out for a drink 22% more times and ordered takeaway 34% more in 2024 than in 2023.
While those stats are very promising, venues should not rest on their laurels and expect growth without strategy, proactivity and persistence. Venues should identify ways to actively encourage and incentivise patrons through their doors. Promotions, loyalty programs, bundled deals and off-peak or dynamic pricing could all be effective ways to grab attention and improve both customer acquisition and retention.
Experiences are essential
Food remains central to a restaurant’s appeal, but the importance of the overall experience is growing too. According to our research, restaurants are taking note, deploying a variety of eye-catching, timely or novel strategies to increase patronage. In fact, restaurants said that 11% of their revenue comes from special events or private dining experiences.
Further investment is planned in 2025. For example, 43% of venues plan to invest more in signature dishes inspired by social media trends. A further 42% are investing in exclusive limited-edition tasting menus, and 35% are enhancing presentation and storytelling around dishes. Collectively, these strategies demonstrate the importance venues are placing on innovating, and giving timely, compelling reasons for guests to visit their venue.
Lightspeed customer Ruby Lane, a wholefoods grocer and cafe in Manly, is a great example of how venues are demonstrating that the overall ‘experience’ isn’t just warm and attentive service, but memorable or unique factors too. They wanted it to be more than just a transactional meal, so the venue hosts numerous workshops and events where you can learn about the food and many other topics like gut health, stress management, yoga dinner nights, fermentation classes, refined sugar free baking classes and more.
They’re not only creating incentives, but creating community too. For venues eager to turn acquired customers into retained customers, focusing on the holistic customer experience in 2025 is important.
Sustainable consumption, practices
Sustainability and varying dietary needs are increasingly influencing both consumer preferences and business strategies too. One in three (34%) Australians want venues to prioritise sustainable food sourcing, while a further 26% want venues to be flexible and cater to specific dietary requirements. One in five (21%) want more alcohol-free beverages and 12% want more vegan or plant-based options.
Evidently, 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.
Again, we’re seeing hospitality operators take note. Over half (51%) plan to prioritise sustainably-sourced produce in 2025, up from 30% in 2024. A further 51% plan to cater to dietary requirements, up from 26% in 2024. Meanwhile, 43% plan to offer vegan or plant-based dishes and 47% plan to offer more non-alcoholic options, up from 31% and 21% respectively in 2024. When customers feel like their unique habits and tastes matter and are catered to, their likelihood of returning can increase.
Technology as an enabler
Consumers visit (and return to) a venue for a myriad of reasons. Technology doesn’t necessarily directly influence their decisions as much as other factors, but its impact behind the scenes is critical in enabling and improving these factors. In fact, 41% of venues highlight technology’s impact on enabling staff to focus on delivering exceptional customer experiences. So even if technology doesn’t directly impact the venues they frequent, it indirectly does, through its ability to free up critical time and resources to provide the meaningful, memorable and unique experiences that customers are looking for.
While 2024 saw consumers visit venues more frequently than in 2023, the rest of 2025 will present new challenges. And new opportunities too. There is no one-size-fits-all recipe for success. Something unique could be as simple as catering to individual dietary needs or tapping into social media trends to generate a sense of ‘Fomo’ (fear of missing out). Ultimately, the experience and making the customer’s visit to a venue feel meaningful and valuable, rather than transactional, are critical. Consumer habits, as ever, will continue to evolve. The businesses who stand the test of time will be the ones who adapt.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
