Data from NAB shows spending at cafés, restaurants, and pubs has risen 7.6 per cent over the past year, with hospitality accounting for one in every $10 spent, despite ongoing cost-of-living pressures.
The data, which has been sourced through the NAB May Consumer Spend Trend Report, showed an overall consumer spend rise of 1.1 per cent, with discretionary spending – supporting by stronger hospitality – rising 2.4 per cent.
Over the year to May, growth in spending was recorded in all sub-categories in hospitality.
Axil Coffee Roasters Founder, Dave Makin, says the data indicates there is good reward for venues who are committed to doing the basics well.
“People still want a small treat, even in tougher times,” says Dave.
“That means nailing the essentials: good coffee and quick service from the moment someone sits down.”
He adds the growth of the signature drink space has also created opportunity.
“Mont Blancs are the biggest thing we’ve seen since smashed avocado,” says Dave.
“It taps into the idea of affordable luxury. Customers understand what they are paying for, and they keep coming back.”
According to NAB, Western Australia experienced the strongest growth, up 8.5 per cent year on year, followed by the Northern Territory (7.8 per cent), New South Wales (7.1 per cent) and the ACT (7.1 per cent).
NAB Head of Small Business Victoria, Dario Medugorac, says cafés and hospitality are leaders in ‘selective spending’ from consumers.
“Australians are still finding room for cafés and restaurants, even as budgets tighten,” he says.
“What we are seeing is more selective spending, and businesses that move quickly are the ones winning it.”
To view the full NAB May Consumer Spend Trent report, click here.
