What’s motivating Australians to dine on-premise despite price hikes?

Most Australians prefer eating out than going out for drinks.

The number of Australian consumers visiting on-premise in June has slightly increased compared to May but the frequency of visitation compared to their usual behaviour has dropped as concerns over the cost of living and increased prices affect decisions to eat out, a report by CGA by NiQ revealed.

Of 750 consumers ages 18 and up surveyed in June, 88% have said they have been out to eat in the past month a slight increase from 86% compared to May. Those who went out for drinks dropped 48% compared to 52% from a month ago.

When asked about the frequency of their on-premise visits versus May, 25% said they are going out more, a drop of 11 percentage points compared to last month. Meanwhile, 34% have said they are going out less often, a 3 percentage point increase compared to May. 41% said they are going out the same as usual.

The top reason for one in two Australians dining out more frequently is a desire to treat themselves (51%). This is followed by being no longer concerned about COVID-19 (32%) and increased events (30%).

Meanwhile, a staggering amount of Australians who said they have lessened the times they eat on-premise is because of the cost of living increases (70%). This is followed by concerns over price increases in eating and drinking out (54%) as well as having less disposable income (47%).

Australians also said they are spending more when they go out. The top reasons are: the price of food being more expensive (70%), the price of drinks being more expensive (55%), and treating themselves more (35%).

The On Premise Consumer Pulse Report is intended to be a fast-turnaround ‘temperature check’ of the channel and the consumers who visit bars, restaurants, or other similar venues in Australia.