Hospitality Industry Finally Turns The Tables: 20% Revenue Surge Predicted For 2025

A 20% revenue surge is forecasted for the Australian and New Zealand hospitality industry in 2025, according to new data released by bookings and table management platform, ResDiary. New data reveals that the tables are turning and 76% of owners and operators expect to achieve more revenue in 2025, and of those expecting an increase, the average expected rise is 20%.

The findings highlight a significant rise in both dining demand and venue openings as key drivers behind the industry’s projected growth as detailed in ResDiary's Beyond the Booking: Australia and New Zealand Hospitality Industry Report 2025 (1).

The optimism appears to be well placed with one in four diners (27%) planning to dine out more in 2025 than they did in 2024. The data also reveals a growing sense of confidence among venue owners, 26% opened a venue in 2024 vs 46% are considering opening a venue in 2025. But it isn't all good news, no-shows continue to be a headache for 54% of businesses, equating an estimated $80 million lost in 2024 in venues across ANZ.(2), (3)

Louise Daley, General Manager of Hospitality Asia Pacific at The Access Group (parent company of ResDiary in ANZ), welcomed the positive signs emerging in the Australian hospitality market.

“Between food prices, labour costs, increased rents and rates, alongside cost of living pressures, hospitality venues have been suffering for years. Our industry is resilient, and it’s great to see the optimism and the ‘tables starting to turn’ in their favour.

ResDiary’s latest report identifies some good news for the hospitality industry, but it also identifies some important challenges that these businesses are yet to overcome like the true cost of no-shows,” she said.

For venues looking to capture a slice of this predicted growth, here are some key insights to consider:

20% revenue surge predicted

ResDiary’s report revealed that 76% of owners and operators expect to achieve more revenue in 2025, and of those expecting an increase, the average expected rise is 20%.

Why be so optimistic? Well, dining demand looks to be on the rise. With over one in four (27%) planning to dine out more in 2025 than they did in 2024 this signals a substantial increase in the number of customers eager to explore new venues in the year ahead.

The data also reveals a growing sense of optimism among venue owners. Nearly a third (29%) are considering opening a new venue in 2025, with 17% confirming that they will. This marks an increase from 2024, when only 26% opened a new venue, and 10% were contemplating one.

In 2024, almost one in five (19%) venues in ANZ extended their opening days, and 24% increased their operating hours. This reflects strong confidence that venues can continue to attract diners during these expanded hours.

No-shows remain a challenge

No-shows continue to be a major headache for the hospitality industry. Over half of respondents (54%) were impacted by no-shows in 2024, and of those affected businesses, it’s estimated no-shows cost a staggering $4,076 per venue. This equates to a staggering $80 million estimated loss across the ANZ hospitality industry in 2024.2,3

Reducing no-shows is critical to unlock revenue growth. ResDiary recommends implementing deposits for group bookings over a certain size, setting up automatic email reminders and making it easy for diners to amend or cancel bookings. Using these simple methods will help overcome the impact of no-show on revenue.

Lunch comes out on top

ResDiary's data shows that lunch is the most common meal out for diners, with 65% dining out for lunch at least once a month. With lunch becoming increasingly popular, it’s important for venues to invest in elevating their lunch offerings to capitalise on this trend. Creating a well-curated lunch menu or offering special promotions during lunchtime can help boost daytime traffic and increase overall revenue.

Streamline the booking experience: convenience is key

Diners expect a smooth and seamless booking process. In 2024, 38% of customers preferred to make reservations directly through a restaurant’s website with 21% of diners prioritising a different restaurant if they couldn’t book online, and 14% would disregard the restaurant altogether.

Notes:

1. The ‘Beyond the Booking: Australia and New Zealand Hospitality Industry Report 2025’ consulted 42 venue operators and 113 diners across ANZ. Download the report here: https://drive.google.com/drive/folders/16FTSB9LrbKMISw1U9QjDQKvsaDVkWXgK?usp=sharing
2. IBIS World. Restaurants in Australia - Number of Businesses (2008–2031). 27,707 Restaurants in Australia in 2024. Available at: https://www.ibisworld.com/australia/number-of-businesses/restaurants/2010/. Last Accessed: February 2024.
3. IBIS World. Cafes and Restaurants in New Zealand - Number of Businesses (2008-2030). 9,036 cafes and Restaurants in New Zealand in 2024. Available at: https://www.ibisworld.com/new-zealand/number-of-businesses/cafes-and-restaurants/720/#:~:text=There%20is%209%2C036%20Cafes%20and,increase%20of%200.9%25%20from%202023. Last Accessed: February 2024.

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