Industry Report

Hospitality in 2026: What’s changing & where to act next

Discover shifts in customer behaviour and industry trends.

One industry. Two perspectives.

Data collected from operators and customers across Australia to tell one clear story of the loud and quiet shifts in the industry this year.

Customers

Reveal how their values and expectations are evolving.

Operators

Share how they’re re-balancing and planning for the year ahead.

Customers: dining habits & demands

Dine-in vs takeaway
Customers are now dining out and ordering takeaway equally, 3X/month on average
Solo dining
Unlike other dining habits that taper off with age, solo dining actually rises again with Baby Boomers
Un-indulgence era
Healthier, natural and locally sourced options top the charts for what customers want to see most on menus

Operators, the disconnect

While customers prioritise health-conscious and wellness foods, operators are honing in on fusion dishes, which see little demand from customers, highlighting an opportunity for alignment.

Access report

Bottomless vs alcohol-free

Operators are designing for two very different moments at the table this year.

Bottomless drinks (37%) and alcohol-free beverages (36%) ranked amongst the top three trends operators are prioritising this year—capturing the widening spectrum of how customers choose to socialise.

Operators' response to rising costs

Changed menu items

Renegotiated/changed suppliers

Had to let staff go

Increased menu pricing

Implemented additional surcharges

Dine-in contributed to 20% of revenue

Dine-in remains the largest revenue stream but its share fell from 31% in 2024 to 20% in 2025 as takeaway, delivery and alternative channels continued to grow.

How operators use tech

When asked about the key benefits derived from technology over the past year, a clear trend emerged—more than 1 in 2 operators cited data-driven insights and improved customer service as their top advantages.

Access report

Evolving perception of technology

Over the past three years, operators have changed how they view and use technology. What began as a tool to reduce overheads in 2023 evolved into a platform for operational efficiency in 2024 and, by 2025, into a driver of data-led insight and better customer service.

What was the greatest benefit tech brought to your business?

2023

“It saved my business on overheads”

2024

"It improved overall operational efficiency”

2025

"Offered additional insights to improve performance & gave staff more time to focus on service”

AI becomes essential

Nearly all operators (98%) reported using AI in some form, and more than 1 in 4 operators consider it essential technology for 2026.

Where AI delivers most

The greatest support cited from AI use by operators was in:

Menu & pricing optimisation (50%)
Customer engagement & messaging (43%)
Inventory management (40%)
Staff scheduling (40%)

Looking ahead, what are operators most concerned about?

Costs
52% of operators cite rising food and supply costs as a key challenge in 2026
Rent
50% of operators point to higher rent and property costs as a major pressure
Competition
37% of operators see a competitor opening nearby as a foreseeable challenge