Sixty percent of Australians are dining out less than they were a year ago, according to new research.
Around half of all Australians are also spending less, figures from FoodService Association Australia (FSAA) and consumer research platform Vypr reveal.
The high cost of dining out was stopping many occasions before they begin, with 57 percent “often” or “very often” deciding against dining because of the expense.
Cutting prices might not be enough to win diners back.
Instead, food quality was the strongest measure of whether a meal represented good value. Around 77 percent of respondents said excellent food quality still made the spend worthwhile if a bill came in higher than expected.
In assessing value for money, food quality was ahead of taste and price, both at 62 percent.
Vypr Chief Revenue Officer Sam Gilding said the survey of 200 Australian consumers conducted in August 2026 showed diners had become more deliberate about which occasions were worth dining out for.
“Restaurants are increasingly competing with the decision to stay home,” Mr Gilding said.
“A diner weighing up whether to go out at all is judging what they’ll get, not just what they’ll pay, so competing on price alone is unlikely to be enough.
“When prices are higher, people need to be able to see, taste, or experience why.”
To manage the cost of dining out, Australians were also choosing cheaper venues, using promotions, and ordering fewer items (all flagged by 39 percent of respondents).
Around 36 percent were drinking less alcohol, 29 percent were opting for takeaway instead, and 25 percent were sharing meals.
FSAA CEO Minnie Constan said diners were scrutinising every dollar, while operators and suppliers continued to manage higher costs across ingredients, energy, wages and the broader supply chain.
“Discounting across the board is expensive and doesn’t fix the underlying problem,” Ms Constan said.
“The stronger position right now is understanding exactly who your core diner is, and building the price, food, offers and experience around what they value because value doesn’t look the same to every customer.”
