Australians are preparing to significantly reduce the frequency they visit – and the amount they spend – at restaurants, bars and cafes, according to new research by guest experience and retention platform for the hospitality industry, Seven Rooms.
From a sample group of 1000, Seven Rooms say that its Cost of Living research found upwards of 30 per cent of consumer expenditure on hospitality could be re-directed in the coming months to general household expenses as inflation continues to be on the rise.
Eight-two per cent of those surveyed feel that the cost-of-living crisis has impacted their spending habits already, while a further 12 per cent believe they will be impacted soon
“After two years in which they had to use every ounce of their resilience, innovation and adaptability, there are further challenges ahead for Australia’s hospitality industry,” said Paul Hadida, General Manager APAC at Seven Rooms.
“We’re now feeling the medium- to long-term impacts of the pandemic, and many Aussies plan to cut back their expenditure on eating and drinking out. It puts a fresh burden on tens of thousands of businesses who are also contending with rising Covid-19 case numbers and historic staff shortages.”
Survey participants say that they will cut back their spend on visits to restaurants, cafes and bars less often and 79 per cent saying they will spend less when they do visit.
Data from Seven Rooms shows that before the cost-of-living squeeze the average Australian spent $129 dollars per month visiting or ordering take away from restaurants, bars and cafes. Today, they’re spending $91 on average – a drop of almost one third of their previous spend.
The research also shows, perhaps unsurprisingly, that:
- Dining out is a primary focus for Australians when it comes to reducing discretionary spending. One in three say they will treat dining out as the priority when it comes to trimming down their expenses.
- The average Australian will visit or get takeaway from restaurants, bars and cafes twice a month, while one in eight won’t do so at all.
- Restaurants will bear the brunt more than most with 60 per cent of those surveyed planning to dine out less frequently, 53 per cent intending to visit bars less often, 50 per cent will get takeaway less often and 43 per cent will visit cafes less often.
However, Mr Hadida suggests that there are ways to incentivise patronage.
“Even in the wake of rising food prices and cost-of-living pressures, Australian consumers say there are plenty of ways venues can incentivise their loyalty. Whether its complimentary drinks, personalised offers or loyalty points, there are opportunities for venues to be strategic to keep their venues busy and customers engaged,” he said.
The research found that 34 per cent of people would be more loyal to a venue if they received a complimentary drink or appetiser and 33 per cent said they would be more likely to return to a venue if they received personalised offers based on a previous visit.
Seven Rooms is a guest experience and retention platform for the hospitality industry that operates around the world and launched in Australia last year.
