New research finds diners are being more “intentional” about how they spend, with 40 per cent of venues finding guests opting for lower-priced items – yet overall activity is trending upward.
In light of Australians in 2024 dining out eight per cent more, and drinking in venues 22 per cent more year on year, Lightspeed director APAC Nicole Buisson offered some perspective on the company’s hospitality data.
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The year is already shaping up to be an interesting one for hospitality.
Rather than pulling back entirely, consumers appear to be recalibrating – choosing where, when, and how they dine with greater care. For pubs and bars, this presents a real opportunity. Those that meet this more thoughtful customer with strong value, standout experiences and operational efficiency can be well-positioned to thrive.
So, how can pubs and bars turn this shift into growth? Lightspeed’s 2025 Hospitality Insights Report offers a clear view into how habits are changing – and what venues are already doing to keep up.
Make your menu dynamic and desirable
While diners are becoming more mindful of their spending, many are still heading out regularly – especially those aged 16–24, who dine out around six times a month compared to the national average of three.
To stay relevant and keep this high-frequency group engaged, pubs and bars are getting creative:
- 47 per cent are planning limited-edition menus
- 44 per cent are developing social media-inspired signature dishes
- 32 per cent are enhancing presentation and storytelling
Provide tiered pricing options for different spenders
Not every customer is splurging. But that doesn’t mean they’re not willing to spend – it just depends on the experience.
Our research shows that more than half of bars and pubs (55pc) are offering tiered pricing, while 50 per cent are giving customers the option to upgrade with premium ingredients. It’s about letting customers choose their own experience, without excluding anyone.
Build value into your offering
Rising supply costs have pushed 49 per cent of pubs and bars to raise prices, and customers are noticing and adjusting their behaviour.
These venues report that customers are skipping dessert, opting out of sides, and are ordering fewer appetisers, indicating that extra items now get a second thought.
To work around this, venues can refresh menus more often, offer shareable plates, or bundle items to deliver value without heavy discounting.
Be upfront about costs
Surcharges remain contentious, but diners have opinions about what feels reasonable.
Public holiday surcharges are the most accepted, with 52 per cent of customers finding them reasonable.
Weekend and credit card surcharges face growing resistance, with over 60 per cent of customers deeming them unacceptable.
Automatic service charges for large groups face the most pushback, with 74 per cent of customers unhappy.
There’s no universal solution, but two approaches are emerging. One is transparency – 33 per cent of venues clearly communicate surcharges upfront. The other is to remove them entirely – 31 per cent say they’ve built those costs into their pricing instead. Both strategies aim to protect the customer experience.
Use tech to take pressure off your team
While customers are watching what they spend, staff are watching the clock. Between inflation and staff shortages, every minute counts.
Pubs and bars using tech solutions save an average of 1.9 hours a day with the help of technology. That time can be reinvested into service – no surprise nearly half of venues say tech has improved efficiency and freed up staff to focus on guests.
With investment going into contactless payments, smart kitchen equipment, and workforce management software, technology is becoming the quiet engine behind better customer experiences.
What’s next?
Australian customers’ behaviours and preferences have changed. They’re more intentional, value-focused, and experience-driven. Pubs and bars that evolve alongside them – with thoughtful pricing, creative menus, and efficient operations – can be well-placed to thrive in 2025 and beyond.
Nicole Buisson, Lightspeed
