Suddenly we find that 2024 is almost behind us now but Future Food would like to share with you the trends and insight that we see across the food and hospitality sector. Despite the challenges posed by rising living costs and shifting consumer spending patterns, the food and hospitality sector continues to adapt to meet the needs and wants of consumers in Australia. Innovative trends are emerging, reshaping the industry landscape and offering fresh opportunities for growth. From the rise of AI to the increasing popularity of experiential dining, businesses are adapting creatively to meet new consumer demands. Even as some food and beverage businesses face financial hurdles, the resilience and ingenuity of the industry continues to shine, promising an exciting future for consumers, F&B operators, clubs, shopping centres, mixed-use precincts and landlords.

The Backdrop – Economic Headwinds in Australia

Future Food’s research and access to industry statistics paints a picture of unflattering numbers in some sectors of hospitality, yet in others they are better than ever. What is happening with consumer spending patterns in the hospitality sector?

Full year reporting on insolvency in July (comparing financial year 2023-24 to 2022-23) indicated a 42% surge in insolvencies on the previous year – up to 1576. Hospitality businesses that were exposed to reduced consumer discretionary spending, higher operational costs and increased costs of servicing debt were most likely to be at risk.

Spending patterns by demographic continues to follow the previous data from earlier in the year; younger generations Gen Z and Y are contracting their discretionary spending even though they have a larger share than others. Baby Boomers and Gen X are still spending – with some even continuing to save money!

In overall spending, we see individual consumption has plateaued; the effects of cumulative inflation over the last 4 years is approximately 20%. Discretionary spending has flatlined and shifted for food and hospitality but spending on essential items is slightly up. So where are consumers spending on food and hospitality? Quick service restaurant (QSR) has increased across the board on metrics through increased uptake (more people), average spend and frequency. Tough times call for more comfort food.

Perhaps oddly and yet understandably, premium dining spending has increased… but only through average spend. Those who already treat themselves to high end dining experiences spend more. What about the bulk of the market in the middle? Declining average spend, uptake and frequency reflecting about an overall 2% decrease.

The good news is that won’t be felt by all, not uniformly across all the categories and individual F&B operators. Strong points of difference, authentic food, great service, location, marketing (with strong tactical execution) and a design-driven space that is on brand will elevate revenue for those with the total package.

Food & Hospitality Trends

Future Food have curated a list of food trends that we have seen through our work and experience in Australia and around the world. Which food and hospitality trends will inspire you and your team to enhance your centre, precinct, campus or club to drive value and improve the customer experience?

Food Trends

Filipino food continues to percolate through the Australian landscape as straight up restaurants/cafés, fusing into other categories like Kariton Sorbet & Gelato. Serai has been the trendsetter at the top of the game for a few years, now joined by Askal in Melbourne earlier this year and have just opened a rooftop bar called Inuman. Tita Carinderia in Marrickville is a Filipino breakfast, lunch, bakery café that made Sydney’s top 20 cafes list in the Good Food Guide. Darlinghurst’s Takam, which had a great reputation when it opened, has just had a refresh and reopened under guidance from Ralph Libo-On and Michael Mabuti (Askal).
Provenance – consumers want to connect with the story of where their food comes from, it is more than just food. The quality and origin of ingredients, will become a decisive factor, pushing establishments to emphasise the source and sustainability of their offerings. This trend is not just in fine dining, but though positioning levels – bars/pubs, clubs, smart casual, fast casual, cafés, QSR and right down to impulse.
Streamlining or rationalisation of menus has benefits from both the customer and F&B operators’ perspective. Less choice might be the obvious downside for customers but then focus can move to the quality of food being made and potentially deflect menu price increases. The operator can take advantage of the opportunity to reduce waste from too much stockholding and use less labour resources for a narrow menu.
Small is beautiful. Food concepts that pack a flavour punch into a small footprint with a single concept specialisation or focus, typically one or two menu items with different varieties favouring Asian style speciality cuisines (Korean, Filipino, Japanese, Chinese, Vietnamese) with hyper-efficient service time, inexpensive pricing, quick to eat on the go and rely on high volume turnover. It is street & food truck-influenced food moving into bricks and mortar.

Technology & AI

The evolution and deeper integration of technology into service (QR code ordering, on table touch screens, self-service kiosks, customised APPs, drive thru AI assisted ordering, reservation chatbots and robots in restaurants) will continue, with AI particularly tackling back of house operations to crunch data faster in real time and put to creative use in some cases. These AI tools save time, boost revenue, and enhance customer experiences, allowing F&B operators to focus more on their culinary craft and hospitality.

AI is being used in QSR outlets to address labour shortages with conversational tech in drive-thrus.
High-end restaurants are using AI in menu forecasting and ingredient management
Generative AI is helping create compelling descriptions, content and translations for diverse customer bases
AI Photography - Chris Lucas’ recently opened Tombo Den in Melbourne (Japanese-inspired restaurant and sake bar) features striking AI photography by acclaimed Melbourne artist Tom Blachford.

Evolution of Food & Entertainment

Offering immersive experiences that go beyond just food. Venues like COSM provide a futuristic blend of live sports, arts, and dining, creating a stadium-like ‘shared virtual’ experience with elevated food and beverage options. URBNSURF’s opening in Sydney this year merges surfing with dining at RAFI and casual options at Sandy’s, making it a hotspot for both surfers and food enthusiasts. Further afield in Dallas, Texas, Sidecar Social offers a social lounge experience with live music, games, and a diverse menu, making it a go-to destination for fun and food.

Video COSM

Listening Bars

In all manner of configurations are certainly having their moment on the main streets, back streets and basements – high profile JAM Record Bar by Merivale in Sydney is Japanese-inspired with cocktails, snacks and sake; Waxflower in Brunswick – a wine bar with local beers and European/Peruvian food; Kemuri Hi-fi (Commercial Bay, NZ) – a vinyl, whisky, cocktail & champagne lounge bar; Astral Weeks in Perth – Japanese-inspired wine bar with the recent addition of a 25-seat restaurant Ah Um; Music Room at HER in Melbourne CBD.

Collaborations

Between developers/landlords and hospitality groups who bring credibility, creativity, deep market insight, design-driven spaces and authentic food and beverage experiences are red hot at the moment.

House Made Hospitality opening four venues at the Sofitel Sydney Wentworth’s hotel with Australian seafood grill Tilda and Bar Tilda on the ground floor, Delta Rue French-Vietnamese on level 5 and Wentworth Bar and rooftop terrace.
Merivale, Lendlease and Mirvac are in a consortium tendering for opportunities above the new Sydney Metro project on Hunter Street.
Cbus Property has collaborated with Chris Lucas to develop two signature multi-level restaurants (Chinese restaurant and a Mediterranean concept) at 435 Bourke Street, in Melbourne’s CBD in the $1 billion next-generation mixed-use precinct.

Breaking New Ground

Proven operators are crossing state borders and exporting their F&B concepts/experience more successfully in the past 12 months, with heavyweights expanding confidently into new markets:

Andrew McConnell exporting Supernormal to Brisbane on the riverside on Queens Street along with new concept Bar Miette;
Italian steakhouse Compa Ristorante and &Sando dine-in/takeaway deli-style sandwich shop in Canberra, opened in partnership with Matt Moran and the Fresh Collective;
Lucas Group opened 120-seat Italian diner Carlotta with a woodfired oven and a dedicated pasta room; with a second venue, a French bistro, announced opening 2025 in the old Botswana Butchery location.

Shifting Positioning

Seasoned F&B operators moving down the positioning level from more formal experiences to casual, primarily reflecting the economic times and trying to provide an opportunity to widen the appeal to a larger segment of the market. Shannon Martinez’s experimentation with different specials on weekdays led to a rebadging and change of concept to ‘Smith & Daughters Social Club’ – featuring a smaller snack offering and a step away from the set menu.

Food Halls

Have been a staple in major cities and though not a new trend, will continue to evolve and expand with the population growth. Timeout Markets alone have seven new locations announced. Now Australia has secured an international food hall brand with Il Mercato Centrale Melbourne opening recently in October. Who will open the first Timeout Market in Australia?

Hospitality Hubs (Multiple venues in one location)

Just a few short years ago were few and notable – Shell House (Menzies Bar & Bistro, Dining Room & Terrace, Sky Bar, and Clocktower Bar) and Hinchcliff House Sydney (2021) (Grana, Lana, Apollonia, Bar Mammoni & Grana Privato) and seemingly opening up now and into the future:

48 Prefecture – a recently opened Japanese-inspired hub with six venues across three storeys. Garaku, a kaiseki experience; Ibushi a robata restaurant; Omakase, eight-seat chef’s table experience; Five, a modern European/Japanese fusion menu; Whisky Thief bar; and Dear Florence patisserie.
The Bristol in Sydney – newly renovated from its pub days. Five levels and housing Bristol sports bar in the basement, Ela Ela Greek restaurant on the ground flour, Calypso Nightclub on level one, NY inspired Midtown Lounge cocktail bar on level two and aptly named Rooftop bar on level 3 featuring an open deck with views over Sydney.
Walker Street Precinct, North Sydney with the Etymon team opening the artisanal providore Una; bakery by day and wine bar by night Sol; 200-seat LA-inspired dining room, bar and lounge Soluna; and 28-seater contemporary Japanese Genzo.
Maison Batard – Lucas Group has opened this four level venue (November 2024 at the top end of Bourke Street, Melbourne across three original buildings. An ode to French cuisine, each venue will have a distinct personality, including a late-night basement supper club, a primary two-level restaurant and oyster bar, a wine cellar and private dining rooms with a rooftop terrace.
Justin Hemmes’ Merivale has just announced ‘Kings Green’ – another Sydney CBD project turning five heritage buildings at 16,300sqm into an interlinking hospitality precinct, with a boutique hotel, multiple hospitality venues, wellness facilities and office space.
The Sydney Fish Market redevelopment will be about more than just fish, with the precinct set to become a foodie hotspot, including a Southeast Asian diner by Luke Nguyen (with Dolton Hospitality Group); Junda Kho opening a Ho Jiak Malaysian hawker-style eatery; Nanjing Dumplings; Japanese Collective offering izakaya fare, ramen, seafood BBQ and a sake bar; Banh Mi & Phin Vietnamese street food; Po Boys (by Trippas White); Cow & The Moon gelato; Glebe favourite Dirty Red bar and cocktails; Taiwanese boba bar Gotcha Fresh Tea; Top Juice; and finally coffee by Stitch.

Solid Fuel Cooking

Cooking with gas might be on the nose, but solid fuel cookery (charcoal or wood) is well and truly continuing to be a trend and yes, more than just wood-fired pizza. Perhaps more famously by the likes of Neil Perry in the Rockpool days and Lennox Hastie at Firedoor but many others are strutting their culinary connection to natural sources of cooking:

Melbourne – Sunda, Aru, Farmers Daughters, Victoria, Grill (by Grossi), Society, Yakimono, Grill Americano, Freyja, Maison Batard (soon to be open)
Sydney – Kiln, Poetica, Woodcut
Perth – Hearth, Shorehouse, Bread in Common, Dandelion
Brisbane – Agnes, Donna Chang, Blackbird, Bosco, Emme, Cloudland bar, The Lex
Adelaide – Anchovy Bandit, Aurora, Restaurant Botanic, Africola.
Not limited to the major cities either with notable restaurants around Australia like Tedesca Osteria, Doot Doot Doot, Brae, Ates, EXP. Restaurant, Pipit and clubs like Belmont 16’s Sailing Club with their new restaurant Martha.

Harnessing some of the emerging trends and opportunities will align with the needs of consumers matching demographic shifts within the wider Australian market and provide new dining experiences. Leveraging partnerships with hospitality groups or adapting concepts to new spaces could exponentially further enhance the appeal and reach of your club, centre or precinct.

2025 Food and Hospitality Trends Reshaping the Australian landscape