How dining behaviours are evolving in 2026

Lightspeed’s annual State of Hospitality Report, based on research with Australian consumers and hospitality operators, reveals how dining behaviours are evolving in 2026. The findings show that Australians aren’t necessarily eating out less, but they are dining out differently. Health, convenience, AI-driven insights and more intentional spending are shaping everything from menu design and portion sizes to alcohol consumption, takeaway habits, tipping behaviour and the overall dining experience.

Dining behaviours key findings:  

• Healthy choices take over as Aussies enter the “Un-Indulgence Era”: Diners are prioritising connection and wellbeing over excess. The report shows:
  • Over a third of consumers are skipping dessert (35%) when budgets, health or energy levels take priority
  • Gen Z drinking is declining, with only 33% now drinking at least weekly (down from 40% in 2024), while the share who never drink has risen to 11% (up from 7% in 2024)
  • 29% of diners say they want to see more health-conscious food options on menus, ranking it as the top customer priority
  • Demand for bottomless drinks continues to decline, falling from 21% in 2025 to 17% in 2026
  • Venues report that 40% of diners now order fewer or no drinks
  • Dining out continues to play a central role in Australian life, with habits holding steady at an average of three meals out, two drinks occasions and four solo dining visits each month.

• How technology became hospitality’s survival tool: As margins tighten and cost pressures persist, operators are increasingly turning to technology to optimise operations and maintain commercial viability. The report shows:
  • More than a quarter of venues (27%) say they could not run their business without AI-powered tools in 2026.
  • Almost 3 in 5 venues save over an hour a day using booking platforms (58%), reporting tools (57%) and AI-powered forecasting and optimisation tools (56%). 
  • 51% of venues say technology has improved customer service by freeing up staff time, up from 33% in 2023.
  • The share of venues using technology for better insights went from just over 3 in 10 (31%) in 2023, to almost 2 in 5 (37%) in 2024 and just over half (51%) in 2025.
  • Almost half (49%) of venues say improving customer engagement and experience is their top priority for growth in the next 12 months, closely followed by AI and technology adoption (43%). 
  • While menu and pricing optimisation is one of the most common uses of AI overall (50%), adoption varies by venue size, with operators running fewer than five venues more likely to rely on AI for day-to-day operational support.
• Takeaway is now a regular part of the weekly routine: Australians are still dining out, but takeaway plays a growing role during the week when people want something quick and affordable, with dine-in reserved for more intentional occasions. The report shows:
  • 36% of Australians now order takeaway at least once a week, on par with dining out.
  • Dining-out frequency remains stable, with around one-third (34%) of Australians still dining out weekly.
  • Only 10% say they never order takeaway, making it a near-universal habit.
  • From the venue side, 40% list delivery or online expansion as a top growth priority for the next 12 months, with takeaway/delivery now accounting for around a quarter (26%) of venue revenue.
• Tipping isn’t dying, it’s transforming through transparency: Diners are driven by meaningful moments and clear transparency rather than routine obligation. The report shows:
  • 44% of diners tip on larger bills or special occasions, when they’re celebrating.
  • 44% are more likely to tip when the purpose or destination of the tip is clearly explained, making transparency one of the strongest tipping drivers.