MATCHA, SPRITZ AND THE VALUE SQUEEZE

Australian hospitality venues are, on paper, busier than they’ve been in years. New transaction data shows the number of diners served nationally is up 9 per cent year-on-year. The trouble is what’s happening to the other side of the ledger.

The spend-per-diner problem

Research from business banking company Zeller, based on transaction data and a survey of 1,131 Australian hospitality operators, found that while diner numbers are climbing, average spend per diner has fallen 13 per cent over the same period. Pubs and bars are experiencing the sharpest divergence of all: patron numbers up 22 per cent, spend per diner down 24 per cent.

More than two-thirds of operators surveyed say profit margins are down on twelve months ago, and 56 per cent report revenue is down despite the extra foot traffic. Nearly all (94 per cent) report rising food and ingredient costs, alongside sharp increases in delivery, energy and insurance costs. In response, 73 per cent of operators say they’re working longer hours themselves to cut wage costs, and 47 per cent have cut rostered staff hours.

Zeller’s read on the numbers is important: this isn’t a demand problem. Australians are still going out. It’s a value and margin problem as customers are trading down to cheaper items and watching every dollar, even as they keep showing up.

What guests are actually choosing to spend on

Two smaller trend stories from the past few weeks help explain where that guarded spending is going. Matcha orders across Australian cafes and venues have jumped 133 per cent year-on-year according to Hey You and Westpac DataX data, driven almost entirely by customers under 35. An iced matcha latte typically costs around $8, about $2 more than a standard coffee, and price doesn’t seem to be putting off younger drinkers who see it as a wellness-driven treat rather than a routine purchase. Sydney’s Matcha Club, co-founded by 27-year-old Donna Win, is one sign of how far the trend has moved from niche to mainstream; even McDonald’s now has matcha on the menu.

On the drinks side, Australian Vintage’s Lemsucco, a wine-led spritz rather than the spirit-based versions that have long dominated the category, has become one of the best-selling lemon spritzes in UK retailer Tesco since launch, with more than a third of buyers new to the spritz category entirely. Senior marketing manager Oliver Hoey says the appeal is deliberate: “Wine already has strong associations with freshness, fruit and social occasions, and putting it into a spritz format makes it feel more approachable and easy to enjoy.” The product has since launched into Australian retail and, under the name Lemsecco, into Asian markets.

Reading the trend correctly

Both examples point to the same underlying behaviour Zeller’s data captures at scale: guests aren’t cutting spending out of hospitality altogether; they’re being more deliberate about where the extra dollar goes. A slightly premium, better-for-you drink or a lighter, more sessionable format can still command a premium, but only when it feels like a considered choice, not a default order.

What this means for venue managers

The takeaway for pub, club and hotel managers isn’t to chase every emerging drink trend, but to recognise that guests are voting with their wallets more deliberately than they have in years. Menu items and drinks that offer a clear, easy-to-articulate point of difference, whether that’s a wellness angle, a lighter-alcohol option, or simply better quality for a fair price, are capturing spend even in a squeezed market. Meanwhile, the underlying cost pressures Zeller documents, with food costs up for 94 per cent of operators and energy costs up for 87 per cent, mean margin discipline on the back-end matters just as much as what’s on the front-of-house menu. Venues that get both right are the ones most likely to convert this year’s extra foot traffic into an extra dollar of profit.

 

Sources: 

“Matcha coffee boom: Australia now considers it a staple” — The Guardian Australia, 25 August 2026 — https://www.theguardian.com/food/2026/aug/25/matcha-coffee-boom-australia-now-considered-a-staple

“Wine advances on the spritz market” — The Drinks Business, 25 August 2026 — https://www.thedrinksbusiness.com/2026/08/wine-advances-on-the-spritz-market/

“Australia’s hospitality sector is busier than ever, but the money isn’t adding up” — Restaurant Business, 5 June 2026 — https://www.restaurantbusiness.com.au/australias-hospitality-sector-is-busier-than-ever-but-the-money-isnt-adding-up/