QPS Box at Fricken Chicken. Photo: Michelle Kroll.
A new report has confirmed what many in the hospitality industry already know: people are spending less money on restaurants and dining out less often.
But a few other interesting trends are growing that give a glimpse into what the future of hospitality may look like.
The State of the Hospitality Industry Report from the point-of-sale system Lightspeed shows that, between 2024 and 2025, the share of revenue from dine-in customers fell from 31 per cent to 20 per cent overall. Much of the difference is due to takeaway sales and third-party delivery services. The report also shows that customers are buying merchandise, such as branded items like house-made hot sauces, t-shirts and cookbooks.
So how do Canberra hospitality venues fit into this trend? And is it good for the industry?
Long-lived businesses like Grease Monkey have witnessed the shift.
Grease Monkey founder Nick Tuckwell told Region that he resisted the change for a while, but has moved to accommodate customer behaviour.
“The industry has definitely changed. Delivery has become a normal behavioural thing now: it was supercharged by COVID, but it never really dropped away after that,” he said.
“We didn’t build the venue for Uber Drivers to be coming in and collecting orders, but we’ve started to now: our Woden and Belconnen venues have that built in.
“There are benefits to having a takeaway market because you’re not bound by the physical size of the restaurant; however, when they replace bums of seats, it comes at a cost.”
The restaurants still pay all their occupancy costs – rent, rates, utilities – but when diners don’t dine in, those costs are paid for half-empty venues. Takeaways also require venues to purchase packaging: bags, boxes, napkins, and cutlery. All of it comes at a cost.
“Takeaway packaging is more expensive than sending out a burger on a plate. I’d rather wash up!”
Barrio is limited by their capacity for dine-in customers, but increases its revenue with sales of coffee, specialty pantry items, house preserves and hot sauces. Photo: Barrio/Instagram.
Barrio is, at its core, a small coffee shop in Braddon. But when you walk into the shop, you’ll also see T-shirts and caps for sale, alongside a retail shelf with bags of coffee beans and house-made sauces and condiments made using fruit and vegetables sourced from local producers.
Co-owner Dan Zivkovich said they initially weren’t expecting to make much money from these retail products.
“In 2020, we didn’t know what would happen to the industry. It was a labour of love to start with, but it really benefited us to get involved with those local farmers,” he said.
“There’s a fortifying nature to it, I think. It’s not something we rely on, but it’s become part of who we are.”
A big part of their income comes from selling roasted coffee beans to other cafes, in retail products at local supermarkets, and at their two cafe locations. Dan said this is really the only way to make the margins of a roastery add up.
“It’s a nice lump sum payment going through the till with decent margins (although the cost of green beans has gone up). Any cafe business, even if you don’t roast your own beans, I’d always recommend having some beans on the shelf for sale.
“We also do the merch thing – we’re a bit silly with it – but it seems to work well. T-shirts are a good way to promote the brand and are definitely more fun than advertising the business through traditional means. And comparatively low risk as well.”
While takeaways, merchandise and take-home ingredients can offer an important revenue stream for businesses, there is the risk that we will lose the heart of what makes restaurants, cafes and bars so important.
Laurence Kain, co-founder of Capital Brewing Co, warned that there are hidden costs to the rise of takeaway meals.
“It feels convenient, but it’s probably not good for your mental health,” he told Region.
“When you go into a venue, you’re interacting with people: bartenders, random people you meet, or your friends who you’re catching up with. That’s good for your wellbeing. It’s a very lonely thing to sit at home and eat takeaway food while watching Netflix – it’s driving the loneliness epidemic.
“What I have observed is that the hospitality industry over the last 10 to 12 years has been digitally disrupted by things like Netflix, HBO and Tinder. We’re competing to get people off the couch from an endless variety of streaming options and entertainment. People aren’t going to venues to meet people anymore.”
He also warns that the use of third-party delivery apps is eroding the local economy, as multinational corporations that own these services skim profits from local businesses.
“They charge something like 20 per cent to the business, so that venue is losing revenue. And when you order on an app, you’re putting money into the hands of multinational companies that are known to exploit gig workers.
“We want to be employing local staff and keeping that money in our community.”
Both Nick and Laurence noted that takeaways change the ambience and feeling of a venue. When there’s been a lot of thought put into the fitout, the seating, lighting, acoustics and vibe, it is disheartening to have people choose takeaway over enjoying a well-curated space.
And if you must get takeaway, order through the venue so they’re around next time you want to eat at home – that 20 per cent could save their business.
Read the State of the Hospitality Industry Report.
Original Article published by Lucy Ridge on Region Canberra.
