Despite ongoing economic challenges, new data on the key trends and sentiment across the hospitality industry indicates returning optimism in the year ahead.
Data from Lightspeed’s Hospitality Insights and Dining Dynamics Report found that consumers made more visits to the on-premise in 2024, with bars and restaurants benefitting from an average increase in total annual visits from 61 in 2023 to 69 in 2024.
For bars and pubs, this translates to a 22 per cent year-on-year increase in drinking occasions between 2023 and 2024, with consumers spending an average of $100 per month drinking out.
The report, based on surveys of more than 2000 consumers and 1000 hospitality decision makers, found that Australians aged 16-24 frequented hospitality venues most often, dining out an average of 72 times and visiting bars 45 times annually.
While data gathered by Lightspeed shows an increase in visits, consumers were still feeling the pinch, with 29 per cent ordering fewer or no drinks when dining and 40 per cent opting for lower-priced menu items.
The report addressed a number of trends and talking points, including what venues plan to serve in 2025. While 21 per cent of consumers indicated that they expect alcohol-free beverages, 47 per cent of venues are planning to embrace this trend, an increase on the 21 per cent of venues providing alcohol-free beverages in the year prior.
Appealing to budget-conscious consumers, 27 per cent of venues indicated their intentions to serve bottomless drinks packages.
The report also sets out to understand how economic realities are reshaping the hospitality industry, and more than half of the surveyed venue operators indicated that they had increased their menu prices in 2024, by 22 per cent on average.
The impact of rising costs also led venues to change or renegotiate with suppliers (41 per cent), close some operations or reduce hours (27 per cent) and let go of staff (26 per cent.
Despite the changes that have been made to adapt to higher operating costs, surveyed venues showed their optimism for the year ahead, with 31 per cent anticipating growth in 2025.
The role of technology in hospitality
In 2024, venue operators also indicated the rising importance of technology, allowing them to meet evolving consumer demands in creative ways.
Last year, 91 per cent of venues had begun utilising AI, and when it comes to operational efficiencies, 47 per cent reported significant improvements.
As a result of improved operational efficiency, 41 per cent of businesses reported that they had enhanced their customer service, and more than a third pointed to overall business performance improvements (37 per cent) and increased revenue relating to better operational management (36 per cent).
Technological solutions included being able to leverage online trends and design eye-catching shareable menu items (adopted by 43 per cent of surveyed businesses), the creation of exclusive, time-limited offerings (42 per cent), tailoring portions and menu options for the growing number of solo diners (41 per cent) and upgrading menu items to appeal to diverse consumer segments (41 per cent).