Behind every plate served, every pint poured, and every smile shared in the state lies a dynamic economic engine, and the numbers from 2023 reveal a NSW hospitality industry that is not just bustling but is a critical, complex pillar of our community—employing over 214,500 people, generating billions in revenue, and navigating a landscape of both remarkable growth and persistent challenges.
Key Takeaways
- In 2023, the NSW hospitality industry employed 214,500 people, accounting for 6.8% of total state employment
- As of June 2023, there were 45,200 full-time equivalent jobs in NSW cafes and restaurants, up 4.2% from 2022
- Women comprised 52.3% of the hospitality workforce in NSW in 2022, with 78,900 female employees
- In 2023, NSW hospitality generated $18.4 billion in total revenue, contributing 3.2% to state GDP
- Cafes and restaurants in NSW achieved $12.7 billion turnover in FY2023, up 11.5% YoY
- Pubs, taverns, and bars revenue in NSW was $9.2 billion in 2023
- Number of hospitality businesses in NSW reached 32,400 in 2023, up 2.1% from 2022
- Cafes and coffee shops outlets in NSW totaled 12,800 in June 2023
- Licensed pubs and taverns in NSW numbered 4,200 in 2023
- Total hospitality consumer spending in NSW was $22.6 billion in 2023
- Average spend per diner in NSW restaurants was $48 in 2023, up 6% YoY
- Alcohol consumption spend in NSW hospitality reached $8.9 billion in 2023
- In 2023, 65% of NSW hospitality venues complied with new wage regulations
- Energy costs rose 24% for NSW hospitality businesses in 2023
- Liquor licensing approval time averaged 45 days in NSW 2023
NSW hospitality employs many young and part-time workers at below-average wages.
Consumer Spending and Trends
- Total hospitality consumer spending in NSW was $22.6 billion in 2023
- Average spend per diner in NSW restaurants was $48 in 2023, up 6% YoY
- Alcohol consumption spend in NSW hospitality reached $8.9 billion in 2023
- Hotel guest spending averaged $250 per night in NSW 2023
- Delivery and takeaway spend grew 15% to $4.2 billion in NSW 2023
- Domestic tourist spend on food/bev in NSW was $7.1 billion in 2023
- International visitor hospitality spend: $3.8 billion in NSW 2023
- Gen Z spending on cafes in NSW averaged $22 per visit in 2023
- Plant-based meal orders surged 28% in NSW venues 2023
- Weekend brunch spend per person: $35 in Sydney NSW 2023
- Loyalty app redemptions saved consumers $180 million in NSW 2023
- Craft cocktail spend averaged $18 per drink in NSW bars 2023
- Family dining spend: $120 average in regional NSW 2023
- Sustainable menu item premium: 12% higher spend in NSW 2023
- Late-night venue spend peaked at $2.1 billion in NSW 2023
- Coffee consumption: 4.2 cups per week, $6.50 average spend NSW 2023
- Group booking average spend: $450 per event in NSW 2023
- Wine by the glass sales: $1.8 billion consumer spend NSW 2023
- Health-focused meal spend up 19% to $1.2 billion NSW 2023
- Peak hour lunch spend: $28 per person Sydney CBD 2023
- Vegan dining occasions: 1.8 million, $92 million spend NSW 2023
- Hotel room service spend: $420 million NSW 2023
- Festival food truck spend: $150 million at NSW events 2023
- Cashless payments: 78% of total spend in NSW hospitality 2023
- Repeat customer spend share: 62% of revenue NSW 2023
- Low/no-alc beverage spend: $320 million growth NSW 2023
Consumer Spending and Trends Interpretation
While New South Wales sipped $48 craft cocktails and savored $120 family dinners, the state's real recipe for $22.6 billion in hospitality revenue was a potent blend of loyal regulars, booming delivery, and a collective side of sustainable avocado toast.
Employment and Workforce
- In 2023, the NSW hospitality industry employed 214,500 people, accounting for 6.8% of total state employment
- As of June 2023, there were 45,200 full-time equivalent jobs in NSW cafes and restaurants, up 4.2% from 2022
- Women comprised 52.3% of the hospitality workforce in NSW in 2022, with 78,900 female employees
- The average weekly wage for hospitality workers in NSW was $1,120 in 2023, 15% below the state average
- Youth employment (15-24 years) in NSW hospitality reached 92,400 in 2023, representing 43% of the sector's workforce
- Part-time workers made up 58.7% of NSW hospitality jobs in Q4 2023, totaling 125,800 positions
- In 2022, 12,300 apprentices and trainees were registered in NSW hospitality trades
- Casual employment in NSW hospitality stood at 67.4% of total jobs in 2023, affecting 144,600 workers
- The turnover rate in NSW hospitality was 28.5% annually in 2023, higher than the national average of 24.2%
- Indigenous employment in NSW hospitality grew to 4,200 workers in 2023, a 7.8% increase from 2021
- Migrant workers accounted for 32.1% of NSW hospitality staff in 2022, with 68,900 from non-English speaking backgrounds
- In regional NSW, hospitality employment was 42,100 in 2023, comprising 19.6% of regional jobs
- Bar and tavern staff in NSW numbered 56,400 full-time equivalents in 2023
- Chefs and cooks employment in NSW hospitality hit 38,200 in Q3 2023
- Hotel accommodation staff in NSW totaled 29,800 in 2023, up 5.1% post-COVID
- Waitstaff positions in NSW cafes/restaurants were 67,500 in 2023, with 22% vacancy rate
- Managers in NSW hospitality numbered 18,900 in 2022, earning average $1,850 weekly
- Disability employment in NSW hospitality was 3.2% of workforce, or 6,800 people in 2023
- Overtime hours in NSW hospitality averaged 4.2 hours per week per worker in 2023
- Union membership in NSW hospitality was 14.7% in 2023, covering 31,500 members
- Training expenditure per employee in NSW hospitality was $1,250 annually in 2022
- Job vacancies in NSW hospitality peaked at 15,200 in March 2023
- Female managers in NSW hospitality increased to 7,400 in 2023, 39% of total managers
- Seasonal employment in coastal NSW hospitality averaged 12,500 jobs during summer 2022-23
- Underemployment rate in NSW hospitality was 18.4% in 2023
- STEM-skilled workers in NSW hospitality numbered 2,100 in tech roles by 2023
- Age 45+ workers in NSW hospitality were 22.3% or 47,800 in 2023
- Multilingual staff in Sydney hospitality venues reached 45% in 2023
- Remote work adoption in NSW hospitality admin roles was 8.2% in 2023
Employment and Workforce Interpretation
While the NSW hospitality sector is a vibrant engine of employment—powerfully led by women and youth—it’s currently running on the volatile fuel of high turnover, casualisation, and wages that lag behind the state average, suggesting the industry is serving everyone but its own workforce.
Establishments and Infrastructure
- Number of hospitality businesses in NSW reached 32,400 in 2023, up 2.1% from 2022
- Cafes and coffee shops outlets in NSW totaled 12,800 in June 2023
- Licensed pubs and taverns in NSW numbered 4,200 in 2023
- Hotels with accommodation in NSW stood at 1,850 in 2023
- Fast food outlets in NSW hospitality sector were 3,900 in 2023
- Fine dining restaurants in Sydney alone numbered 450 in 2023
- Regional NSW had 8,200 hospitality venues in 2023, 25% of state total
- Average venue size in NSW hospitality was 150 seats for restaurants in 2023
- New hospitality business entries in NSW were 1,120 in 2023
- Closures of hospitality venues in NSW totaled 780 in 2023, down 40% from 2022
- Multi-venue operators controlled 18% of NSW hospitality outlets in 2023
- Outdoor seating areas expanded to 65% of NSW venues by 2023
- EV charging stations at NSW hospitality sites reached 420 in 2023
- Heritage-listed hospitality venues in NSW numbered 320 in 2023
- Brewery taprooms in NSW grew to 180 in 2023
- Co-working kitchen spaces for hospitality startups: 25 in NSW 2023
- Average age of NSW hospitality buildings was 45 years in 2023
- Solar panel installations in NSW venues hit 2,800 sites in 2023
- Waterfront hospitality developments approved: 15 new in NSW 2023
- Ghost kitchens operating in NSW totaled 650 in 2023
- Venue refurbishments completed: 1,200 in NSW hospitality 2023
- Pop-up venues hosted: 450 events across NSW in 2023
Establishments and Infrastructure Interpretation
While the state's 780 closures signal a still-tough market, the 2.1% rise in total businesses to 32,400—driven by everything from 12,800 cafes to 180 brewery taprooms—proves NSW hospitality is stubbornly thriving by constantly remodeling itself, literally through 1,200 refurbishments and figuratively by embracing pop-ups, co-working kitchens, and even EV chargers to stay relevant.
Regulations and Challenges
- In 2023, 65% of NSW hospitality venues complied with new wage regulations
- Energy costs rose 24% for NSW hospitality businesses in 2023
- Liquor licensing approval time averaged 45 days in NSW 2023
- Staff shortage impacted 72% of NSW venues in 2023 survey
- Food cost inflation hit 18.2% YoY for NSW hospitality in 2023
- COVID recovery grants disbursed $250 million to 5,200 NSW venues in 2023
- Noise complaint violations: 1,200 cases against NSW venues 2023
- Wage theft penalties issued to 340 NSW hospitality firms in 2023, totaling $4.2m
- Supply chain disruptions affected 55% of NSW hospitality ops in 2023
- Health inspection failures: 8.4% of NSW venues in 2023
- Insurance premium hikes averaged 22% for NSW hospitality 2023
- Lockout law repeal boosted late-night trade by 14% but increased assaults 9% in 2023
- Plastic ban compliance: 92% of NSW venues by mid-2023
- Minimum wage increase to $23.23/hr impacted payroll by 7.8% in NSW 2023
- Cybersecurity breaches reported by 12% of NSW hospitality businesses 2023
- Waste reduction targets met by 41% of large NSW venues in 2023
- Public health orders fines: $1.8m to 150 NSW hospitality offenders 2023
- Rental arrears affected 28% of Sydney CBD hospitality leases 2023
- Allergen labeling compliance issues in 6.2% of NSW venues 2023
- Climate risk assessments completed by 19% of coastal NSW venues 2023
- Superannuation underpayment recovered $12m from 900 NSW hospitality employers 2023
- Trading hours restriction appeals: 210 granted in NSW 2023
Regulations and Challenges Interpretation
While staggering under a brutal siege of surging costs, regulatory scrutiny, and staff shortages, the NSW hospitality industry grimly juggled compliance and survival, proving that keeping the lights on and the wages honest is a high-wire act performed over a regulatory minefield.
Revenue and Economic Impact
- In 2023, NSW hospitality generated $18.4 billion in total revenue, contributing 3.2% to state GDP
- Cafes and restaurants in NSW achieved $12.7 billion turnover in FY2023, up 11.5% YoY
- Pubs, taverns, and bars revenue in NSW was $9.2 billion in 2023
- Accommodation revenue from hotels in NSW reached $6.8 billion in 2023
- Total wages paid by NSW hospitality sector amounted to $14.2 billion in 2023
- Tax contributions from NSW hospitality businesses totaled $2.1 billion in GST in FY2023
- Export-related hospitality services (e.g., tourism) generated $1.9 billion for NSW in 2023
- Average annual revenue per hospitality venue in NSW was $1.45 million in 2023
- Profit margins in NSW restaurants averaged 8.7% in 2023, post-inflation recovery
- Gaming revenue from NSW pubs and clubs was $1.12 billion in FY2023
- Food delivery platform commissions impacted NSW restaurant revenue by $450 million in 2023
- Sydney CBD hospitality revenue surged 22% to $4.3 billion in 2023
- Regional NSW hospitality revenue grew 9.8% to $5.6 billion in 2023
- Alcohol sales revenue in NSW hospitality was $7.8 billion in 2023
- Event catering revenue in NSW totaled $1.2 billion in 2023
- Online booking revenue share in NSW hotels was 28% or $1.9 billion in 2023
- Cost of goods sold for NSW hospitality averaged 32.5% of revenue in 2023
- Break-even occupancy for NSW hotels was 45.2% in 2023
- Loyalty program revenue uplift in NSW hospitality was 12% or $1.1 billion in 2023
- Takeaway sales revenue in NSW cafes grew to $3.4 billion in 2023
- Corporate catering contracts generated $850 million for NSW hospitality in 2023
- Inflation-adjusted revenue growth in NSW pubs was 3.2% in 2023
- Wedding venue revenue in NSW hospitality hit $620 million in 2023
- Craft beer sales contributed $420 million to NSW hospitality revenue in 2023
- Sustainability premium added 4.1% to revenue for green NSW venues in 2023
- Peak season revenue (Dec-Feb) accounted for 38% of annual totals in NSW hospitality 2023
Revenue and Economic Impact Interpretation
While serving up a hearty $18.4 billion to the state and pouring $14.2 billion into pay packets, NSW hospitality proves it's the tireless, profit-squeezed engine of the economy, fueled by coffee, craft beer, and our collective refusal to cook at home.
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