Australian diners are trading souffle for schnitzel as the cost of living crisis bites. Fine-dining restaurants across Australia have experienced a 28% decline in bookings, while bookings at mid-priced pubs and cafes are rising.
In an analysis of over 3.79m bookings and 14.8m “covers” (hospitality jargon for customers served) during 2022, reservation platform ResDiary found diners are forgoing premium-end meals where the average spend per head is $81 or more.
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Rebecca Zeitunian of ResDiary said their data showed fine dining’s decline was “very much correlated” with rising interest rates.
From May 2022 – when the RBA raised the cash rate for the first time in 12 years – to October 2022, there was an 88% increase in cancellations at fine-dining restaurants.
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Zeitunian called this phenomenon “booker’s remorse”.
“There’s that potential reconsideration of: ‘Am I going to go to a venue and spend this price tag, or can I have still an opportunity to treat myself and be sociable with my friends somewhere else?’”
View image in fullscreenIt comes as no surprise to Iain Ling, owner of The Lincoln in Melbourne, that bookings at more affordable pubs and cafes are increasing. Photograph: Georgia Verrells
By comparison, bookings at more affordable pubs and cafes, with an average per-head spend of $21 to $40, are increasing. ResDiary said they now comprise 48% of reservations – up from 37% in January 2022.
This isn’t surprising to publican Iain Ling, who co-owns The Lincoln in Melbourne.
“Pubs are like cornerstones of communities. You can go for a beer, you can go there for an occasion, you can go to when you say: ‘fuck it, I’ve had a bad day.’”
He said that although rising inflation has driven up the cost of counter meals, these price rises have not dented demand because “People are always gonna order fried chicken and deep-fried potatoes”.
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About 50% of Ling’s customers now book ahead, while the rest of the Lincoln’s trade is walk-ins. Ling said that pubs relative affordability and flexibility makes them an attractive dining-out option.
“You can just turn up and have a go … There’s more rolls of the dice available in the pub.”
However, Suresh Manickam, CEO of the Restaurant and Catering Association – the dining industry’s peak body – said top-end restaurants are not alone in feeling the pinch. Venues across the price spectrum face rising produce and energy costs, alongside a skills shortage.
But after years of pandemic-related uncertainty for the industry, patron numbers are a bright spot for the industry, with the feedback being that “they’re still enjoying going out”.
