Sustainability & tech at the table: The key hospitality trends for 2025
Consumer demand for sustainable and inclusive dining experiences is growing, and venues are responding
Australia’s hospitality sector is transforming as diners return in greater numbers, driven by sustainability, dietary inclusivity, and technological advancements.
According to the Lightspeed Hospitality Insights and Dining Dynamics Report from Lightspeed Commerce Inc. venues are adapting to meet consumer expectations in a rapidly shifting landscape. While cost-of-living pressures remain, Australians continue to prioritise dining out, with younger generations leading the charge and businesses forecasting strong growth for 2025.
A nation that loves to dine out—with regional differences
Dining out remains an essential part of Australian culture, but trends differ across demographics. On average, Australians dined out 41 times in 2024, up from 38 times in 2023. However, younger Australians (16-24) led the charge, eating out a remarkable 72 times annually, while high-income earners allocated an average of $166 per month to restaurant visits.
City dwellers tend to dine out more frequently, with metropolitan areas seeing a greater rise in restaurant and bar visits compared to regional counterparts, where home cooking and local pubs remain dominant. Meanwhile, cultural differences across states influence dining habits—Melbourne’s café culture is booming, Sydney sees more fine dining interest, and Queenslanders lean towards casual and beachside dining.
While Australians are dining out more frequently, they’re also adapting to economic pressures, with 31 percent opting for less expensive dishes and 34 percent sharing meals to cut costs. On the business side, more than half (53 percent) of hospitality venues raised menu prices in 2024—by an average of 22 percent—to navigate supply cost hikes and labour shortages.
Despite these challenges, there is an air of optimism, with restaurants, bars, and cafes forecasting an average of 31 percent growth in 2025.
Sustainability and dietary inclusivity on the rise
Consumer demand for sustainable and inclusive dining experiences is growing, and venues are responding. The report found that 51 percent of hospitality businesses plan to prioritise sustainably sourced ingredients in 2025, up from 30 percent in 2024. Likewise, 51 percent of venues are set to cater to dietary requirements, more than doubling from 26 percent the previous year.
Plant-based dining is gaining momentum, with 43 percent of venues planning to offer more vegan or plant-based options, compared to just 31 percent in 2024. Non-alcoholic beverages are also on the rise, with 47 percent of venues expanding their alcohol-free offerings, a significant jump from 21 percent the previous year.
“Australian diners care about more than just great food—they want venues that align with their values,” said Nicole Buisson, Managing Director for APAC at Lightspeed. “
Whether it’s locally sourced ingredients or menu options that cater to different dietary needs, businesses that embrace these priorities can be more likely to connect with their customers. Offering excellent food and drinks is still key, but showing a commitment to ethical and sustainable practices can make a difference in today’s competitive market.”
Technology: The backbone of modern hospitality
Tech-driven efficiency has become a defining factor for hospitality businesses looking to thrive in a challenging economic climate. Nearly half (47 percent) of operators reported that technology has significantly improved operational efficiency, with many citing enhanced customer service, improved revenue, and better management of rising costs.
Digital tools are also shaping how venues attract and engage customers:
-
43 percent are using online trends to create visually appealing, shareable menu items.
-
42 percent are introducing time-limited specials to create buzz and drive bookings.
-
41 percent are adjusting portion sizes and menu options to cater to solo diners.
-
41 percent are upgrading dishes with luxury ingredients to appeal to high-end clientele.
With the right technology in place, operators are not only streamlining operations but also delivering a more personalised and engaging dining experience.
Tipping culture: A work in progress
Australia’s tipping culture remains modest compared to other global markets, with 68 percent of diners choosing not to tip at all in 2024. However, transparency is key—47 percent of consumers said they’d be more inclined to tip if they knew 100 percent of the gratuity went directly to staff. Special occasions and fine dining settings were the most common scenarios in which Australians left a tip, but the overall practice remains inconsistent across the industry.
Interestingly, tipping behaviours also vary by region. Sydney and Melbourne diners are more likely to tip, especially in high-end venues, whereas Queensland and regional diners tend to follow a more casual approach, tipping only on rare occasions. Higher-income diners ($90,000+) were also the most likely to tip, though even this group reported lower frequency compared to the previous year.
What’s next for Australia’s hospitality industry?
The Lightspeed report paints a picture of an industry that is evolving to meet the needs of modern consumers. As sustainability, dietary inclusivity, and technology-driven efficiency take centre stage, businesses that embrace these trends will be better positioned to thrive in 2025 and beyond.
With Australian diners keen to support venues that align with their values, the future of hospitality looks not only resilient but increasingly innovative and customer-focused.
Mandy has over two decades of experience in accommodation and tourism industry writing, and she is also an accomplished editor and publisher. As co-Director of Multimedia Pty Ltd, a trusted B2B content provider for the accommodation and education sectors in Australia and New Zealand, she oversees high-quality print and digital content across notable publications, including AccomNews, Resort News, and School News, along with the property listing platform AccomProperties. Mandy’s contributions have been recognised with the Female Leader Award at the Best of Tourism 2023 and the ARAMA Life Member Award in 2024.