MOBI Index reveals a 34% increase in the cost of eating out for Aussies

Consumers are paying more but it’s the hospitality industry that’s paying the ultimate price.

Key Findings:

Consumers are paying 34% more to eat out compared to prices in 2019.
The demand for eating out has decreased by 10% year on year.
Hospitality owners are struggling to maintain balance as the cost of goods continues to soar.

Data compiled by MOBI from over 7,000 hospitality businesses and 43 million transactions shows the price to eat out has gone up by a third, as hospitality businesses grapple with the rising costs of goods.

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Cost of Living

Menu prices for dining in, takeout, and delivery have all increased by 4.3% over the past year, reflecting the ongoing rise in the cost of living and dining out for Australians. This aligns with the MOBI Index data, which matches the ABS reports. Hospitality inflation is at 4.3%, surpassing the national CPI of 3.5%. Since August 2019, the cost of dining out has surged by 34%, leading many consumers to seek more budget-friendly dining options.

Comparing prices today to 5 years ago (August 2019) shows consumers are having to pay 34% more for the same products.

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Ashley Steriti, Head of Marketing & Training of Wahlburgers ANZ, states, “As the cost of living continues to rise, we've observed a significant impact on our the day-to-day at Wahlburgers Australia. The higher costs of key ingredients have compelled us to make challenging decisions; such as optimising our menu prices, offering a broader range of options, and perfecting operational efficiencies. Despite these challenges, our commitment to delivering quality food and a great dining experience remains unwavering.”

“We recognize that consumers expect exceptional value for their money. Given that people are more cautious with their spending in these trying times, we find they are choosing to patronise establishments they know and trust, so it's essential that we deliver that credibility and provide exceptional worth. The economic slowdown has also shifted consumer behaviour, with more customers opting for take-away and delivery options rather than dining in. Data from the MOBI Index underscores these broader trends, and it’s evident that businesses like ours must stay agile and responsive to navigate these uncertain times effectively.” Wahlburgers ANZ operate six vibrant locations across the region, delivering mouthwatering burgers, pizzas and wings plus all the excitement of live sports.

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Year on year price inflation has come down since early 2023. From the beginning of 2022 to March 2023, price inflation rose from around 5% to over 9% as many establishments increased their prices. August 2024 Prices are up 4.3% on August 2023, meaning consumers are paying 4.3% more than last year for the same food.

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‍Burgers

The humble burger has become an Aussie staple for many even though the prices have been increasing steadily year on year. The average burger in Australia will cost around $17 AUD which is a 21% increase since 2019.

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‍Coffee

‍Aussies are now paying over $5.29 for their daily coffee as prices have snuck up by 4.3% since 2023. Looking at the last 5 years the price of a flat white has increased from $4.15 AUD to $5.29 - a 25% increase.

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Aussies VS Kiwis

Look on the bright side though, at least Aussies aren’t having to pay $19 for burgers and $6 for coffees like our Kiwi friends in New Zealand who are also battling rising costs.

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Demand Decline

MOBI CEO, Shannon Hautot, is concerned by the rising costs of the hospitality industry and the long term impacts that will have on the other side of this economic downturn. “We’ve observed an average 10% decrease in order frequency over the past 12 months, indicating that people are dining out less often. While the August demand saw a smaller decline of 6%, thanks to the extra weekend, the overall trend shows that although spending per visit remains steady, people are dining out less frequently.”

“We’ve seen the demand for online ordering growing as consumers want that convenience to be able to order directly through their phone. Online ordering has become an essential offering for the hospitality industry. MOBI bridges that gap for hospitality businesses to maintain their own brand and customer experience while giving the consumer the digital platform to order and pay.” Shannon Hautot, MOBI, CEO.

Steady downward trend since 2023 of overall demand. The last 12 months it's averaged around 10% down on the prior 12 months. This latest August was a little better, only 6% down, likely due to the extra weekend in August.

About the MOBI Index

‍ The MOBI Index leverages over 43 million orders from their comprehensive analytics across 7,000 hospitality businesses since 2018, to provide in-depth insights into economic and industry trends. MOBI’s data-driven approach helps illuminate the underlying factors affecting the economy, offering valuable information for policymakers, businesses, and the general public.

About MOBI

‍Founded in 2010, MOBI is the market leader in the mid-market enterprise hospitality tech category in Australia, New Zealand & Canada, processing over $500m in customer transactions. With a presence in more than 3,000 restaurants and hospitality businesses across Australia, New Zealand, Canada, and the U.S, MOBI’s enterprise-grade solutions focus on helping clients increase revenue, improve customer experience, and regain control of their customer relationships. Originating as an online ordering solution for Order Ahead & Pick-up, MOBI has expanded product offerings to now include Branded Storefronts, Mobile Apps for iOS and Android, AI-driven guest experiences, White Label Delivery, Marketplace Order Aggregation, Order with Google, Order at Table, Personalised Loyalty and over 120 powerful integrations.

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