Six in 10 Australians are dining out less often than a year ago, with cost pressures increasingly determining whether they eat out at all. A new report from FoodService Association Australia and research firm Vypr found that 64 per cent of the population has cut back on restaurant visits to manage rising expenses. Almost half are also spending less when they do decide to go out.
Spending habits shift across age groups
Cost is prompting 57 per cent of Australians to often or very often skip dining out entirely. Those who continue to do so are changing their behavior in measurable ways. Many are gravitating toward lower-priced venues, using promotions, ordering fewer items, or cutting back on alcohol. Some are switching to takeaway or sharing meals more frequently.
The data shows clear generational differences in how people are adapting. Among those aged 55-64, 83 per cent report dining out less often. Younger diners are taking a different approach: 59 per cent of 18-24-year-olds are choosing lower-priced venues and drinking less alcohol, while 53 per cent of 35-44-year-olds and 47 per cent of 25-34-year-olds are using promotions to make their money stretch further.
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Quality still matters more than price
Despite the focus on saving money, food quality remains the primary measure of value for most Australians. The report found 77 per cent cite quality as their top consideration, outpacing both taste and price, which each registered at 62 per cent. Roughly 69 per cent would choose a venue with higher food quality when comparing two similar options, suggesting that cutting corners on ingredients carries real risk for operators.
Sam Gilding, chief revenue officer at Vypr, said the findings show a shift in mindset rather than a permanent pullback from dining out. “Australians haven’t stopped valuing dining out. They’ve simply become far more deliberate about which occasions are worth it,” he said. “Strong food quality and an experience worth leaving home for gives them a clearer reason to justify the spend.”
The industry is handling a familiar tension between volume and margin. Operators and suppliers are facing higher costs across ingredients, energy, wages, and the supply chain, according to the report. FSAA CEO Minnie Constan said businesses should understand their core customers and what they value rather than relying on broad-based discounts. Diners are scrutinizing their spending more carefully, which means generic price cuts may not be enough to win them back.
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What would bring customers back
Lower prices would encourage more frequent dining for 70 per cent of Australians, the report found. Premium meal deals, loyalty rewards, and meal bundles were also cited by 41, 38, and 36 per cent respectively. That suggests some appetite for creative alternatives to straightforward discounting, though price remains the dominant factor.
Looking ahead, 65 per cent of Australians expect the cost of living to have the biggest influence on their dining decisions over the next three years. Affordability is expected to become more important when choosing where to eat for 73 per cent of respondents. The findings indicate that operators who can demonstrate clear value without sacrificing quality may be better positioned than those competing solely on price.
