Foodies turn away from fine dine restaurants as cost of living bites
The cost-of-living crisis is having a big impact on Australia’s fine dining restaurants as diners turn to pubs and cheaper eat-out options.
ResDiary data shows a decline of 28% in bookings for fine dine restaurants and a rise in bookings for mid-priced pubs and cafes.
The restaurant reservation and table management platform’s Regional Head of Growth, APAC Rebecca Zeitunian said the company analysed over 3.79 million bookings and 14.8 million “covers” or customers served during 2022 and found diners were forgoing restaurants where the average spend per head is $81 or more.
There was an 88% increase in cancellations at fine-dining restaurants from May to October 2022.
“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?’” Zeitunian said.
It seems diners are now flocking to restaurants where the average spend is between $21 to $40, which doesn’t come as a surprise to 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.’”
Despite rising inflation Ling says, “People are always gonna order fried chicken and deep-fried potatoes”.
Ling’s diners are equally divided between those have booked and walk ins. He says they are attracted to the affordability and flexibility a pub offers.
“You can just turn up and have a go … There’s more rolls of the dice available in the pub.”
Despite this, local pubs are still feeling the inflation pinch with CEO of the Restaurant and Catering Association Suresh Manickam saying rising produce and energy costs, alongside a skills shortage, will have an impact on all venues.
Jonathan Jackson, 17th April 2023
