MOBI Price Index 2024: Year in Review

Executive Summary

The MOBI Price Index for 2024 offers a comprehensive look at the evolving restaurant industry trends across New Zealand, Australia, and Canada. The data reveals that inflation, changing consumer habits, and dietary preferences have had significant impacts on the hospitality sector. MOBI’s insights from over 4,500 hospitality businesses and 25 million transactions highlight the growing need for restaurants to adapt to economic pressures and shifting customer priorities.

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Key Findings

Inflation and Price Increases

Across all three countries analyzed, inflation has continued to impact restaurant pricing. However, the extent of price hikes and their effects on consumer behavior varied:

• New Zealand: Prices increased by 4.2%.
• Australia: Prices rose by 4.3%.
• Canada: Canada experienced the smallest price increase at 3.2%, indicating a relatively stable pricing environment.

Price increases reflect ongoing operational challenges as inflation continues to impact pricing strategies and consumer behavior.

Average Order Spend

A notable trend across countries is the shift in how consumers are spending:

• New Zealand: Average order spend decreased by 3%, suggesting that consumers are ordering fewer items or choosing cheaper options.
• Australia: Order values remained flat, indicating that consumers are maintaining spending levels despite inflation.
• Canada: Average order spend grew significantly by 8%, rising from $42.60 to $45.90. This suggests that Canadian consumers are prioritizing higher-value, premium menu items over frequent dining.

According to MOBI CEO Shannon Hautot, "Canadians are dining out less often, but when they do, they are choosing higher-value, premium experiences. The increase in average order spend suggests consumers are prioritizing memorable, high-quality dining over frequency."

Demand Growth

Despite increases in average order spend, demand for restaurant services saw declines across all countries:

• New Zealand: Demand fell by 5%.
• Australia: Demand declined by 3%.
• Canada: Canada experienced the sharpest decline in demand at 6%. This indicates that while Canadians are willing to spend more per order, they are ordering less frequently due to ongoing economic pressures and reduced disposable income.

Regional Variations in Canada

Different provinces in Canada displayed varying trends:

• Ontario: Saw the highest price inflation at 4.3%, but average order spend decreased by 5%.
• British Columbia: Consumers showed more price sensitivity, with only a 1% decrease in order spend.
• Alberta: The only region to show growth in average order spend (up 4%). Delivery fees decreased by 16%, likely aimed at attracting more customers.

Delivery Fees

Delivery fees varied across the three countries in 2024:

• In New Zealand, delivery fees rose by 5%, averaging $10 per order.
• Australia experienced the highest increase, with delivery fees up 14% from $6.85 to $7.80 per order. Melbourne saw the sharpest rise at 23%.
• In Canada, delivery fees remained stable at $5.60. However, there were regional differences, with Ontario seeing a 2% decrease and Alberta cutting fees by 16% to attract more customers.

Changing Consumer Habits

The MOBI data also sheds light on evolving dietary preferences:

Alternative Diets in Australia

• Gluten-Free: 16% increase, accounting for 1.2% of total orders in 2024.
• Dairy-Free: 18% increase, representing 0.1% of total orders.
• Vegan: Declined by 2% but still represents 2.5% of total orders.
• Vegetarian: Slight decrease of 1%, maintaining a 3.6% share of orders.

Alternative Diets in New Zealand

• Vegetarian: The most popular alternative diet, with a 22% increase and 16.9% share of total orders.
• Gluten-Free: Increased by 12%, making up 12% of orders.
• Vegan: Grew by a significant 47%, now accounting for 5% of orders.
• Dairy-Free: 8% growth, with a 3.1% share of orders.

Alternative Diets in Canada

• Vegetarian: Surged by an impressive 124%, now comprising 40.9% of total orders, reflecting a major shift toward plant-based eating.
• Gluten-Free: Increased by 19%, making up 12.7% of orders.
• Dairy-Free: Declined by 10%, remaining at 0.1% of orders.
• Vegan: Declined by 16%, now at 0.2% of total orders.

These insights highlight significant regional variations in dietary preferences. In Canada, the dramatic rise in vegetarian orders suggests a growing demand for plant-based meals, while the decline in vegan orders may reflect changing perceptions of veganism or broader dietary trends.

According to a Karen Paradine, Director of Marketing, Chopped Leaf, "We’re seeing a widespread shift towards healthier, more sustainable eating habits among consumers."

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2024 Wrap-Up Summary

1. Inflation impacted all three countries, with Canada experiencing the most stable pricing environment.
2. Demand for restaurant services declined, but average order values grew in Canada, suggesting a shift toward premium dining experiences.
3. Delivery fees increased in New Zealand and Australia but remained steady in Canada, with regional variations.
4. Alternative diets continue to rise in popularity, with significant growth in vegetarian and gluten-free options.

Key Insights for 2025

1. Personalization at Scale: Consumers are expecting tailored experiences, from customized menu recommendations to loyalty offers. Businesses that can leverage data to provide personalized service will stand out.
2. Increased Automation and AI: The use of AI-driven solutions in areas like ordering, inventory management, and customer engagement will continue to grow. Automation will help businesses streamline operations and reduce staff workloads.
3. Consumers Expect Payment Flexibility: Offering multiple payment options, such as digital wallets, buy-now-pay-later services, and contactless payments, will be essential to meet evolving consumer preferences.

Conclusion

The MOBI Price Index 2024 highlights the growing impact of inflation and changing consumer habits on the restaurant industry. As Canadians navigate economic challenges, they are increasingly seeking higher-value dining experiences while reducing the frequency of their orders. Restaurants that adapt to these trends by focusing on premium offerings, regional preferences, and dietary-specific options will be better positioned for success in 2025 and beyond.

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