Young Aussies buck the cost-of-living trend, splashing out on dining out while older Aussies tighten the purse strings, new data and insights from Square finds

Data shows Aussie dining habits are evolving – they want casual, community-connected venues with seamless, friendly service and tech that doesn’t get in the way

New insights from hospitality technology platform, Square, reveals that despite cost-of-living pressures, Gen Z are dining out more, spending more, and expecting less friction when it comes to the dining experience - while older generations lean into affordability and familiarity.

The data shows that one fifth (19%) of Gen Zs dine out more than once a week, compared to just 5% of Boomers and 10% of the general population. Nearly a quarter (23%) of Gen Zs are dining out more frequently than a year ago compared to just 5% of Boomers and 12% of the general population. When it comes to how much they’re willing to part with, more Gen Zs (32%) say they’re spending more on dining than they were a year ago, compared to 21% of Boomers and 23% of the wider population.

And while younger diners are eating out more, they’re also redefining what great hospitality means - with a clear preference for community-connected venues, casual dining formats, and seamless, tech-enabled service.

Last week, Square brought together a selection of hospo heavyweights - from The Mulberry Group to Pasta Prego; Etta to Hope Street Radio - at its first Secret Sauce event to discuss the research findings into changing dining trends, the role that tech and community play in hospo, and how the industry can adapt to navigate the rough macro conditions.

Brunch isn’t dead - if you’re under 30

According to Square’s new research, Gen Z are still flying the weekend brunch flag - a cornerstone of Australia’s flat white, smashed avo culture. More than a quarter (26%) of this demographic call brunch their favourite time to dine out, compared to just 8% of Boomers and 16% of the general population.

But overall, breakfast is falling out of favour. Weekday dinners (30%) and lunches (30%), as well as weekend lunches (35%) and dinners (53%), were the most popular dining times across the board, with breakfast options trailing behind.

Casual dining thrives, chains take a back seat

While Aussies are still going out, they’re looking for more casual experiences. Cafes, pubs, and fast-casual venues such as takeaway spots and food courts dominate, with 58% of diners preferring casual venues and 24% choosing fast-casual.

“Local restaurants with a strong sense of place are winning hearts,” said Jean Magalhães, Hospitality Product Lead at Square. “Data backs this up: over half of Aussies (53%) prefer a neighbourhood venue or growing restaurant group over a national chain.”

__Service matters, but Gen Zs more lenient __

Even with changing consumer behaviours, one thing remains constant: service still matters. For full-service venues, 82% of Aussies say quality of service influences whether they return. And with platforms like Google Reviews or Instagram driving discovery, how venues make diners feel matters more than ever.

While Gen Z might be more forgiving of service slip-ups – only 36% are affected by mixed-up orders versus 54% of Boomers – they still expect speed, convenience and smooth experiences, especially in quick-service environments.

Tech’s role in service: invisible, but essential

And while some might see technology as a barrier to connection, Square’s research and experience show the opposite: when well-integrated, tech frees up staff to deliver better, more personalised service - something 82% of diners in full-service restaurants say is critical to their decision to return.

“Tech isn’t about replacing hospitality, it’s about amplifying it,” said Jess Aloi, Go To Market Lead at Square. “Using hospitality tech properly should free up wait-staff to spend more time with guests, or back-of-house systems that streamline operations. The goal is for tech to take on the heavy lifting and make service feel effortless.”

“Technology should be the silent partner,” says Aloi. “It should remove the friction - so the warmth, personality and craft of hospitality can shine through.”

Community-building and collaboration still key to long-term success

Another theme explored during Secret Sauce was the power of community in hospitality.

“There’s credibility in community,” said Magalhães. “We’ve seen venues like Hope St Radio, which offers a platform for independent artists, or Little Lagos, which is bringing Nigerian food culture to Sydney, build loyal, resilient customer bases by becoming cultural and social hubs. These venues don’t just serve food—they foster belonging. And that sense of connection is something Gen Z in particular are showing up for.”

“In an industry under pressure, community isn’t just a nice-to-have, it’s a competitive edge,” said Magalhães. “Whether it’s shared staffing, precinct-based promotions, or just moral support, hospo venues that collaborate build resilience. It’s that rising tide that lifts all boats.”

Other insights from Square’s Secret Sauce event in Melbourne:

Lorenzo Fantarella & Isaac Varano from Melbourne-based pasta takeaway shop, Pasta Prego, highlighted the importance of reduced friction, saying, “We used to be four cooks in a corner staring at a wall of paper dockets, but Square’s Kitchen Display System has been a total game changer. Tracking orders on a screen rather than relying on paper dockets has probably saved us 15 minutes on wait times on a busy night. That’s great for service. Square’s not just a payment tool for us; it’s how we track trends, plan staffing, and respond to how people eat.”
Michael Bascetta, Chief Product Officer at The Mulberry Group, highlighted the importance of community by saying, “If you can create something that’s really wanted and needed in a particular community, then you’ll have a group of people who will continue to come back again and again.”

Bianca Stern, General Manager at social enterprise and hospitality group All Things Equal, which is pioneering the future of employment for people with disability, said community was “everything” and “without our community, we are nothing.”

Almay Jordaan, Owner and Executive Chef at Neighbourhood Wine, Old Palm Liquor and Bahama Gold, spoke about the importance of technology in helping learn about your customers, saying: “Good service is delivering what your customers expect — and if you don’t know what that is, learn fast. The more you know about the customer beforehand, the less stressed everyone is — tech makes that possible.”

Sandra Foti, Founder at Melbourne gelateria Piccolina, highlighted how technology enables hospo businesses to deliver more personal experiences, saying: “Hospitality from the heart — it’s not just a transaction, it’s a personal experience. Tech like Square helps us deliver that experience. It just works — it’s fast, intuitive, and keeps the team calm, particularly during the rush”.

Event photos:
Community panel: images here.
From left to right: Jean Magalhaes (Square), Zoe Rubino (Roccos & Poodle), Emilio Scalzo (Roccos & Poodle), Michael Bascetta (Mulberry Group), Dani Valent (Good Food/The Age)
*
Tech panel: images here.
*From left to right: Kamilla Schou Warr (Square), Isaac Varano (Pasta Prego), Lorenzo Fantarella (Pasta Prego), Audrey Allard (Holy Sugar), Dani Valent (Good Food/The Age)
*
Service panel: images here.
*From left to right: Jess Aloi (Square), Sandra Foti (Piccolina), Hannah Green (Etta), Almay Jordaan (Neighbourhood Wine, Old Palm Liquor, Bahama Gold), Nick Connellan (Broadsheet)

*Credit: Danielle Castano