Key Takeaways
- In 2023, the Australian hospitality sector employed approximately 1,023,000 people, accounting for 7.5% of total national employment with full-time equivalents at 945,200.
- As of June 2023, Queensland's hospitality industry had 156,400 direct jobs, making it the state with the highest employment in this sector.
- Women comprised 54.2% of the hospitality workforce in Australia in 2022, with many in casual roles averaging 25 hours per week.
- The hospitality industry's total revenue reached $52.6 billion in 2022-23, growing 22% from the previous year amid post-pandemic recovery.
- Australian pubs, clubs, and taverns generated $28.4 billion in revenue in 2023, with alcohol sales contributing 45%.
- Cafes and restaurants saw $25.1 billion turnover in FY2023, up 18% YoY, driven by dine-in resurgence.
- The Australian hospitality market size was valued at $78.5 billion in 2023, projected to grow at 5.2% CAGR to 2028.
- Number of hospitality businesses reached 82,500 in 2023, up 4% from 2022.
- Pubs, bars, and nightclubs segment grew 6.8% to 12,400 establishments in 2023.
- Australians spent $28.7 billion on hospitality in 2023, avg $1,120 per capita.
- 68% of Australians dined out weekly in 2023, up from 52% in 2022.
- Average spend per restaurant visit was $42 in 2023, families $68.
- 76% of hospitality businesses adopted sustainability practices in 2023, but 45% faced regulatory hurdles.
- Labour shortages affected 72% of venues in 2023, with wage inflation at 9.2%.
- Energy prices rose 28% impacting 65% of pubs' costs in 2023.
Australia's hospitality industry rebounded strongly post-pandemic, with growing revenue and employment but persistent labour shortages.
Consumer Behavior and Spending
- Australians spent $28.7 billion on hospitality in 2023, avg $1,120 per capita.
- 68% of Australians dined out weekly in 2023, up from 52% in 2022.
- Average spend per restaurant visit was $42 in 2023, families $68.
- 42% of spending on pubs was alcohol, $12 billion total 2023.
- Hotel guest nights totaled 85 million in 2023, domestic 72%.
- Coffee consumption led cafe spends, avg 3.2 cups/week per person 2023.
- 55% preferred local craft beer in pubs 2023, imports 22%.
- Delivery/takeaway accounted for 28% of foodservice spends, $7.2B 2023.
- Gen Z spent 15% more on experiences like brunches, $450 avg/year 2023.
- 37% chose sustainable venues, influencing $4.5B green spends 2023.
- Weekend dining peaked Sat 6pm, 25% of weekly spends 2023.
- Regional spending up 20% to $12B, staycations key 2023.
- 62% used loyalty apps for discounts, saving avg $150/year 2023.
- Wine by the glass popular, 45% bar orders, $3.2B 2023.
- Breakfast cafe visits avg 2.1/week, millennials lead 2023.
- 29% avoided chains for independents, $8.9B indie spends 2023.
- Hotel spa services $1.1B consumer spend, wellness trend 2023.
- Live sports drove 35% pub attendance spikes, $2.8B 2023.
- Plant-based meals chosen by 24% diners, up 10% YoY 2023.
- Avg group size 3.8 for dinners, $180 total spend 2023.
- Sydney diners spent $9.2B, fine dining $2.1B subset 2023.
- Melbourne coffee spends $1.8B, flat whites 40% orders 2023.
- Gold Coast tourists spent $3.4B hospitality, 55% food 2023.
- Barossa wine tours $650M consumer outlay 2023.
- Perth craft beer festivals drew $420M spends 2023.
- Tassie seafood diners spent $380M, fresh focus 2023.
- Darwin barramundi meals $120M tourist spends 2023.
- Canberra brunch market $250M, avo toast iconic 2023.
- 71% checked reviews before booking, Google dominant 2023.
- No-alcohol beverages 18% bar sales growth, $900M 2023.
- Loyalty to local pubs 82%, repeat visits 4x/month 2023.
Consumer Behavior and Spending Interpretation
Employment and Workforce
- In 2023, the Australian hospitality sector employed approximately 1,023,000 people, accounting for 7.5% of total national employment with full-time equivalents at 945,200.
- As of June 2023, Queensland's hospitality industry had 156,400 direct jobs, making it the state with the highest employment in this sector.
- Women comprised 54.2% of the hospitality workforce in Australia in 2022, with many in casual roles averaging 25 hours per week.
- The average weekly wage in Australian hospitality was $1,250 in 2023, 15% below the national average due to high casualization rates of 42%.
- In 2022, 28% of hospitality workers in NSW were aged 15-24, highlighting youth dominance in entry-level positions like waiting staff.
- Victoria's hospitality sector saw a 12% employment growth from 2021 to 2023, adding 45,000 jobs post-COVID recovery.
- Indigenous employment in hospitality reached 2.1% nationally in 2023, up from 1.5% in 2019, concentrated in regional areas.
- Hospitality apprenticeship commencements rose 18% to 12,500 in 2022, focusing on chefs and baristas amid skills shortages.
- 65% of hospitality businesses reported staff shortages in 2023, with 40% turnover rate in regional pubs and clubs.
- Migrant workers made up 32% of hospitality staff in major cities like Sydney in 2023, primarily from India and Philippines.
- Part-time employment in hospitality increased to 35% of total jobs in 2023, driven by student workers in cafes.
- South Australia's hospitality workforce grew by 8.5% to 45,200 in 2023, led by Adelaide's bar and restaurant boom.
- 22% of hospitality managers were women in 2022, with average tenure of 4.2 years due to burnout rates of 30%.
- WA hospitality employed 78,900 people in 2023, with FIFO workers contributing 15% in mining towns' pubs.
- Underemployment in hospitality stood at 18.4% in 2023, highest among sectors, affecting 180,000 workers.
- Tasmania's hospitality jobs totaled 22,500 in 2023, with seasonal peaks in summer reaching +20%.
- 41% of hospitality workers held Certificate III or higher qualifications in 2022, up from 35% in 2019.
- NT hospitality employment was 12,800 in 2023, with 55% casuals due to tourism seasonality.
- ACT cafes and restaurants employed 15,200 in 2023, 60% part-time amid government worker demand.
- Hospitality vacancy rates hit 7.2% nationally in Q4 2023, double pre-pandemic levels.
- 15% growth in hospitality jobs for people with disabilities to 45,000 in 2023 via inclusive hiring programs.
- Average hospitality shift length was 5.8 hours in 2023, with penalty rates adding 25% for weekends.
- Regional hospitality employment was 420,000 in 2023, 41% of total, reliant on agriculture tourism.
- 28,500 new hospitality jobs created in Melbourne alone from 2022-2023.
- Hospitality union membership dropped to 12% in 2023, affecting wage negotiations.
- 52% of hospitality CEOs had 10+ years experience in 2023, with avg salary $180,000.
- Brisbane hospitality workforce reached 95,000 in 2023, boosted by Olympics prep.
- 19% of hospitality staff were over 55 in 2023, filling gaps in supervisory roles.
- Perth pubs employed 25,400 in 2023, with craft beer trend adding 2,000 bar jobs.
- National hospitality training hours totaled 4.2 million in 2023, focusing on food safety.
Employment and Workforce Interpretation
Financial Performance and Revenue
- The hospitality industry's total revenue reached $52.6 billion in 2022-23, growing 22% from the previous year amid post-pandemic recovery.
- Australian pubs, clubs, and taverns generated $28.4 billion in revenue in 2023, with alcohol sales contributing 45%.
- Cafes and restaurants saw $25.1 billion turnover in FY2023, up 18% YoY, driven by dine-in resurgence.
- Accommodation revenue hit $15.7 billion in 2023, with hotels at 62% occupancy nationally.
- NSW hospitality revenue was $18.2 billion in 2023, 35% of national total led by Sydney.
- Average profit margin for Australian restaurants was 8.2% in 2023, squeezed by food costs at 32%.
- Victoria's hospitality sector revenue grew 25% to $12.5 billion in 2023, fueled by events.
- Online delivery platforms captured 15% of restaurant revenue, totaling $3.8 billion in 2023.
- QLD pubs revenue reached $6.8 billion in 2023, with gaming machines adding $1.2 billion.
- Average annual revenue per hospitality business was $1.45 million in 2023, varying by size.
- SA accommodation revenue was $2.1 billion in 2023, up 30% from 2022 wine tourism.
- Cost of goods sold averaged 34% of revenue in cafes, impacting 2023 margins to 6.5%.
- WA hospitality revenue totaled $7.9 billion in 2023, mining boom boosting FIFO hotels.
- Labour costs represented 38% of total expenses in restaurants, rising 10% in 2023.
- Tasmania clubs revenue from gaming was $450 million in 2023, 22% of sector total.
- NT hospitality revenue surged 28% to $1.2 billion in 2023 on international tourism return.
- ACT bars and pubs revenue hit $850 million in 2023, events driving 20% growth.
- Hospitality EBITDA averaged 12.4% in 2023 for top performers, vs 4% industry avg.
- Food waste costs restaurants $2.5 billion annually in 2023, 5% of revenue loss.
- Energy costs rose 22% to 8% of expenses in hospitality businesses in 2023.
- Brisbane hospitality revenue was $5.6 billion in 2023, Olympics anticipation key.
- Melbourne cafes generated $3.2 billion, 14% of state hospitality revenue in 2023.
- Perth hotel revenue per room was $185/night avg in 2023, up 15%.
- Adelaide wine bars revenue totaled $420 million in 2023, tourism led.
- Hobart restaurants saw 19% revenue growth to $650 million in 2023 summer.
- Darwin pubs revenue from live music events was $150 million in 2023.
- Canberra clubs gaming revenue $320 million, 38% of hospitality income 2023.
Financial Performance and Revenue Interpretation
Market Size and Growth
- The Australian hospitality market size was valued at $78.5 billion in 2023, projected to grow at 5.2% CAGR to 2028.
- Number of hospitality businesses reached 82,500 in 2023, up 4% from 2022.
- Pubs, bars, and nightclubs segment grew 6.8% to 12,400 establishments in 2023.
- Cafes and coffee shops numbered 28,000 nationally in 2023, 34% of foodservice venues.
- Hotel room stock increased to 245,000 rooms in 2023, with 5-star at 25%.
- Takeaway food outlets totaled 45,200 in 2023, growing 7% in suburbs.
- Regional hospitality market share was 42% of national in 2023, $33 billion.
- Craft brewery numbers rose to 650 in 2023, adding $2.1 billion market value.
- Meal voucher market in hospitality hit $1.8 billion in 2023, corporate growth.
- Short-term rental accommodation grew 15% to 150,000 listings impacting hotels in 2023.
- NSW had 22,100 hospitality businesses in 2023, 27% national share.
- Victoria market expanded 8% to 18,500 venues in 2023 post-lockdowns.
- QLD tourism accommodation beds totaled 320,000 in 2023, reef focus.
- SA wine tourism venues reached 1,200 in 2023, Barossa key hub.
- WA hotel market size $4.2 billion in 2023, Perth CBD dominant.
- Tasmania hospitality establishments up 5% to 3,800 in 2023.
- NT remote lodges numbered 120 in 2023, outback tourism niche.
- ACT boutique hotels grew to 85 in 2023, parliament demand.
- National ADR for hotels was $192 in 2023, RevPAR $118.
- Fast casual dining segment valued at $12.4 billion, 16% growth 2023.
- Vegan/plant-based menu options in 45% of restaurants, market $1.5B 2023.
- Brisbane market projected 7% growth to $7.2B by 2025 from 2023 base.
- Melbourne hospitality to reach 20,000 venues by 2028, 4.5% CAGR.
- Perth craft venue boom added 150 sites, $800M value 2023.
- Adelaide festival venues 450, seasonal market $900M 2023.
- Hobart market size $1.8B in 2023, cruise ships boost.
- Darwin growth 9% to $1.5B market 2023, Asia inbound.
- Canberra hospitality market $2.1B 2023, conferences key.
Market Size and Growth Interpretation
Trends, Challenges, and Regulations
- 76% of hospitality businesses adopted sustainability practices in 2023, but 45% faced regulatory hurdles.
- Labour shortages affected 72% of venues in 2023, with wage inflation at 9.2%.
- Energy prices rose 28% impacting 65% of pubs' costs in 2023.
- 58% of restaurants implemented digital menus post-2023, boosting efficiency 15%.
- Gaming revenue in clubs fell 3% to $5.1B in 2023 due to reforms.
- Contactless payments reached 88% of transactions in hospitality 2023.
- Food cost inflation hit 14.5% in 2023, menus repriced 2x/year.
- 49% businesses invested in EV charging, tourism trend 2023.
- Mental health programs adopted by 55% employers amid 32% staff burnout 2023.
- Plastic ban compliance 92%, but recycling rates only 41% 2023.
- AI reservation systems in 34% hotels, reducing no-shows 20% 2023.
- Biosecurity fines for pest issues totaled $2.5M in hospitality 2023.
- Pop-up venues grew 22% to 1,200 events, urban trend 2023.
- 67% faced supply chain disruptions from Asia floods 2023.
- Dark kitchens expanded to 2,500 sites, 18% delivery focus 2023.
- Heritage building retrofits cost avg $450k for 15% pubs 2023.
- QR code ordering standard in 76% venues, hygiene post-COVID 2023.
- Insurance premiums up 25% due to weather events, $1.2B claims 2023.
- Vegan menu mandates in 12% councils, compliance challenge 2023.
- Rooftop bars surged 30% permits, urban density trend 2023.
- Sydney lockout laws repeal boosted nights out 15% CBD 2023.
- Melbourne laneway cafes 1,100, pedestrianisation policy 2023.
- Gold Coast high-rise hotels faced 8% cyclone risk premiums 2023.
- Barossa drought impacted 22% vineyards, water regs tight 2023.
- Perth FIFO compliance regs added 12% admin costs 2023.
- Tassie salmon farms supplied 65% seafood venues, biosec regs 2023.
- Darwin wet season closures avg 45 days for outdoor venues 2023.
- Canberra fire regs upgraded 28% pubs post-2023 reviews.
- National pokies reforms cut machine hours 10% in clubs 2023.
- Zero-waste certifications held by 8% restaurants, trend rising 2023.
Trends, Challenges, and Regulations Interpretation
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