Just released ABS Retail Trade data confirms that Australians are continuing to dine out, with Cafés, Restaurants and Takeaway Food Services recording a 2.5% increase in total turnover for the financial year ending June 2025.
Annual spending in the sector reached $66.273 billion, reflecting steady consumer demand despite cost-of-living pressures and shifting discretionary habits.
John Hart OAM, National President of Restaurant & Catering Australia, said the most accurate way to assess sector performance is by looking at the year-on-year growth.
“The year-on-year turnover is the clearest and most reliable reflection of sector performance,” said Hart. “It confirms that Australians are still supporting local hospitality–and that matters.
”While top-line turnover is improving, operators are still under pressure. Menu pricing is not keeping pace with inflation, and many businesses are holding back from passing on rising input costs to customers.
“This growth shouldn’t be mistaken for recovery,” Hart said. “The sector remains fragile. Operators are doing what they can to absorb cost increases, but margins are tight, and staffing remains a challenge.
”R&CA continues to advocate for practical reform across workforce policy, red tape reduction, and targeted cost relief to ensure operators can remain competitive. “This is a sector made up of hardworking small business owners who support local jobs and create real community connection. They deserve policy that reflects the reality they’re operating in, ”Hart added.