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.

With ANZAC Day falling on Saturday 25 April 2026, the NSW Premier has confirmed that Monday 27 April will also be recognised as a public holiday. This arrangement has been introduced for both 2026 and 2027, when ANZAC Day falls on a weekend, and is expected to affect penalty rate staffing costs and operational planning for small businesses across the state.  

The Government has acknowledged that the additional Monday holiday may contribute to increased financial pressure for small business operators, particularly due to heightened wage obligations associated with public holiday penalty rates. Premier Chris Minns has noted that smaller employers are likely to experience the most significant impact, describing the change as “somewhat of an additional burden for small businesses.” 

Laurence McLean, Director of Operations at Peninsula Australia, says the change highlights the importance of employers having a clear understanding of their entitlements and obligations: “Penalty rates on public holidays can increase wage costs significantly, depending on the applicable industrial instrument. 

“For small businesses operating on tight margins, an additional public holiday immediately after a weekend, particularly where the Saturday prior is already a public holiday, in this case ANZAC Day on 25 April, can influence staffing decisions and operational planning. Reviewing rosters, confirming entitlements, and ensuring compliance with the Fair Work Act will help employers prepare effectively.” 

Many employers may experience penalty rate impacts relating to: 

• Adjustments to wage payments and penalty rates 

• Last-minute rostering or scheduling challenges 

• Reduced trading capacity should businesses decide not to open 

• Increased HR and staffing considerations, particularly in industries reliant on weekend labour such as hospitality, retail, and care services 

Laurence notes that early preparation can support smoother operations: “Being proactive about planning allows small businesses to manage the change with greater confidence. Reviewing award classifications, communicating with staff early, and understanding cost implications can help minimise disruption.” 

While the Government has framed the additional public holiday as an opportunity for broader community participation in ANZAC Day, it has also acknowledged that the measure has not been universally welcomed by business owners.  

Australian small businesses ended 2025 with solid momentum, recording their strongest sales, employment growth, and getting paid faster in two years, according to the latest Xero Small Business Insights (XSBI) data.

The December quarter update, which analyses anonymised and aggregated data from 520,000 Australian small businesses, shows performance in the sector continued to strengthen leading into 2026. This positive momentum could be at risk following the RBA’s latest interest rate increase in February.

December quarter at a glance:

• Sales growth rose 6.7% y/y – the best result in over two years, peaking in December with a 9.6% y/y increase
• Jobs growth rose 3.4% y/y – the strongest performance in two years
• Small businesses were paid on average in 23.9 days – the fastest recorded since XSBI started in 2017
• Wages rose just 2.0% in the quarter largely due to a holiday-impacted weak December result (+0.5% y/y), which is likely to be revised up in future releases
• Queensland had the highest sales growth in the country with a 8.3% y/y increase, followed closely by South Australia (+7.8% y/y)
• By industry, construction (+9.5% y/y), health care (+9.3% y/y), and real estate (+8.6% y/y) sales outperformed the national average

RBA decision could impact small business economy momentum

Small business sales grew 6.7% y/y in the December quarter, the largest quarterly rise since June 2023. This acceleration was particularly evident in December, which saw a 9.6% y/y surge – the largest monthly increase since early 2024, reflecting the positive impact of earlier 2025 interest rate cuts on consumer spending.

The growth flowed through to the workforce, with jobs increasing 3.4% y/y – the strongest result since late 2023. 

“Small businesses worked hard to find their footing in late 2025, reaching sales and employment levels we haven’t seen in two years,” said Louise Southall, Xero Economist. “However the February cash rate hike is a reminder of the fragile environment these owners operate in. As the RBA moves to address rising inflation again, the momentum we saw in December will be tested. Small businesses will need to remain disciplined to navigate the potential impact on  consumer spending over the coming months.”

Small businesses getting paid faster than ever

In the December quarter, small businesses were paid in an average of 23.9 days – the fastest quarterly payment time since the XSBI series began in January 2017.

Late payment times also saw a slight improvement, dropping to an average of 6.6 days from 6.7 days in the previous quarter.

“Yes, we’re seeing the fastest payment times on record — but let’s be clear: small businesses are still being paid almost a week late. That means they’re effectively financing their larger customers and, when you’re running on tight margins, being paid six or seven days late isn’t an inconvenience — it’s the difference between investing in growth and covering payroll,” said Angad Soin, Managing Director ANZ & Global Chief Strategy Officer at Xero.

“Cash flow discipline is becoming non-negotiable. With Payday Super on the horizon, owners need real-time visibility over their cash position and the confidence to forecast ahead.”

Construction and health care trend upwards, discretionary industries stall

Construction (+9.5% y/y) and health care (+9.3% y/y) saw the strongest sales growth, however the end-of-year period was more subdued for retail (+4.7% y/y) and hospitality (+3.5% y/y), both of which were below the national average of 6.7%.

“Black Friday is fast becoming the biggest sales moment of the year, but our data shows smaller retailers aren’t necessarily winning from it. In November, sales growth slowed to just 3.3 per cent — the weakest result since April 2025, suggesting discount-driven periods are amplifying the divide between big retailers with pricing power and small businesses competing on thin margins. For many small retailers, sales events now drive volume but not always profitability.”

The construction (+5.3% y/y) and health care (+5.7% y/y) industries also led the hiring charge, signaling that owners in these sectors felt confident enough to expand their teams.

Confidence among Australian employees in the availability of jobs has declined to its lowest level in more than three years, according to Gartner, Inc., a business and technology insights company. 

Gartner’s most recent Global Talent Monitor survey data, collected between October and December 2025, highlighted how ongoing market volatility is reshaping employee behaviour and attitudes going into 2026. The survey revealed confidence in job availability fell to 55.7 in Q4 2025, the lowest level recorded since at least 2022, reflecting deepening uncertainty as economic pressures and reduced hiring activity continue across the Australian market. 

“With fewer opportunities and heightened competition for open roles, Australian employees are becoming more cautious about making career moves,” said Neal Woolrich, Director, Advisory in the Gartner HR practice. “This lack of confidence is creating a labour market ‘freeze’, where many workers feel stuck – hesitant to leave but also uncertain about what the market can offer.” 

AI Intensifies Uncertainty in a Tightening Job Market

The changing nature of work is also contributing to employee unease. As organisations adopt AI at scale to automate tasks, redesign workflows and reconfigure roles, employees face growing ambiguity around future skill needs. 

“As AI adoption accelerates across industries, organisations are rethinking the roles and skills they need,” said Woolrich. “For employees, this shift can heighten uncertainty – they’re not just competing with other job seekers, but with rapidly evolving technology. This amplifies the sense of volatility in the job market and can contribute to a decline in job seeking activity.” 

Low Job Confidence Holding Employees in Place

The weakened job market sentiment is already influencing job search behaviour. The Gartner survey found only 19.4% of Australian employees reported actively seeking new roles in Q4 2025, signalling an overall cooling in job movement. 

With measures of job confidence remaining subdued in Q4 2025, the Gartner survey highlighted that employees are looking for stability. The intent of Australian employees to stay in the current role increased to 38.1% in Q4 2025, up from a three‑year low of 32.9% in Q1 2025. 

“Employees are opting for security over risk,” said Woolrich. “When confidence in job availability falls, they become less likely to explore new roles – even if they’re dissatisfied. This dynamic can intensify workplace fatigue, tension and disengagement if not addressed.” 

Focus on Compensation Intensifies

The Gartner survey revealed compensation remained firmly among the top drivers of both attraction and attrition for employees in Q4 2025, reflecting ongoing cost‑of‑living pressures in Australia (see Table 1). 

Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, Q4 2025

Source: Gartner Global Talent Monitor Survey, Q4 2025 

The survey also indicated that poor manager quality remains a top reason Australian employees are leaving their organisations. This highlights the role that leaders play in clearly communicating organisational direction and stability during times of sustained uncertainty. 

“In periods of volatility, employees look to leaders for clarity, consistency and fairness,” said Woolrich. “Purpose‑led leadership becomes essential – not only to retain talent, but to create confidence that the organisation can navigate uncertainty.” 

The latest Equifax Business Market Pulse for Q4 2025 reveals a multi-speed recovery. Large businesses are leading the way on credit demand growth, with an observed increase in overall demand reaching heights of up to +19.4% (trade credit) in some sectors, such as hospitality.  Meanwhile, the broader view of the Small Business and Medium-sized Enterprise (SME) sector appears to exhibit a steady, albeit gradual, recovery. Although SMEs are trailing the growth seen in larger enterprises, their demand for credit continues to rise. However, the longer-term trends still show small business borrowing is on a recovery pathway, with Q4 2025 credit demand -9% below what it was four years ago in Q1 2022. 

With overall credit demand increasing by +2.3% compared to the same period in Q4 2024, Brad Walters, General Manager of Commercial at Equifax in Australia, indicates this may be the starting signs of SME recovery. 

Observing the trends, Brad Walters, General Manager, Commercial, said, “The +4.5% year-on-year increase in SME demand in Q4 2025 is a positive signal – though it reflects a more measured recovery pace compared to larger enterprises.”  
 
“While large-scale businesses appear to be accelerating their credit appetite more quickly, SMEs appear to be navigating a steadier path upward as they balance growth with external factors such as the  pressures of inflation. They don’t always have the means to absorb potential shocks as easily as their larger competitors, so they’re choosing a steadier, more sustainable climb back to the top.” 

Business Credit Scores Hit 3-Year High 
 

Equifax insights reveal that business loan demand increased +4.1% year-on-year in Q4 2025 and, in addition, business loan quality increased by two points, achieving a three-year high.  

“When we look at the past quarter, it appears to be a story of a change in the market mix. We’ve seen more enquiries from larger businesses, which often have more reserves and carry higher credit scores. This shift in the overall enquiry profile – where the larger players are currently more credit active than smaller players – is what I see driving this upward trend in credit quality. In practical terms, this shows that the credit quality of the mid-market and larger businesses overall remains quite resilient.” Walters said.  
 

The Equifax Business Market Pulse Q4 2025 also reveals an overall year-on-year decline (-4.9%) in trade credit demand, an indication that businesses are not making as many transactions as they were this time last year.  

Large Hospitality, Construction and Retail Businesses Strong Drivers of Credit Growth 

Notably – hospitality, construction and retail – highlighted differences in the financial appetite of large businesses and SMEs in Q4 2025.  

 
Hospitality showed one of the largest gaps. Credit enquiries from large hospitality businesses drove increased demand across trade credit (+19.4%), business loans (+9.1%) and asset finance (+5%). 

“The hospitality sector shows one of the widest discrepancies in overall demand for large businesses compared to SMEs in Q4 2025. While trade credit demand in large hospitality businesses increased by +19.4% year-on-year, overall credit demand growth from SMEs (+1.9% year-on-year) was marginal.  

While insolvencies in the hospitality sector remain high overall, the past quarter showed an encouraging -9% reduction compared to Q4 2024, in addition to a -1.5 day reduction in Days Beyond Terms (DBT) for trade payments over the same period”, said Mr Walters.   
 
In the construction sector, insolvencies remained high but relatively unchanged year-on-year. Credit demand, however, told a different story. 

Mr Walters stated, “The demand we are seeing could suggest big builders are confidently securing materials for their project pipelines, driving a +6.6% year-on-year (vs Q4 2024) increase in trade credit. Now, during this same time period, small construction businesses appear to be avoiding broad debt, seen by a slight reduction (-0.7%) in overall demand, and only borrowing for specific tools via asset finance (+4%).” 

In the retail sector national demand from large retailers increased by +7.9% year-on-year, compared to a stagnant +0.7% for SMEs in Q4 2025. Large NSW retailers were particularly active, increasing their business loan enquiries by a staggering +25%. 

Mr Walters concluded, “While we have seen strong demand growth among large retailers, the wider sector still shows some signs of pressure, with the past quarter revealing a substantial +64% increase in retail insolvencies year-on-year.” 

 Intuit the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, has announced a set of Mailchimp product innovations that unlock profitable growth for ecommerce businesses. Powered by the Intuit platform, the enhancements include more ways for merchants to connect their data and activate omnichannel campaigns driving up to 30x ROI for ecommerce customers without the added price or complexity. 

For small and mid-market online sellers, customer acquisition and growth are becoming harder to measure and optimise. Only 33% of marketers globally say their pre-opt-in messaging is highly aligned, making it difficult to see which efforts drive orders and where revenue is being lost. Without a unified view of their data, merchants lack clear attribution and ROI insight. Email remains a core revenue driver for 69% of marketers, but maximising its impact increasingly depends on unified data and automation that help teams focus investment on what works and drive measurable growth.

“ANZ ecommerce marketers are balancing tighter budgets with higher expectations to prove impact,” said Anthony Capano, Regional Director, APAC, Intuit Mailchimp. “These updates bring advanced data, automation, AI and omnichannel capabilities into one platform, helping teams make smarter decisions, optimise faster, and clearly connect their marketing to revenue and long-term customer value. And with 26% more ecommerce triggers, marketers can spend less time on guesswork and more time building campaigns that truly move the needle.” 

Mailchimp product innovations designed for ecommerce growth

The newly-introduced capabilities directly address the core problems ecommerce businesses report today: limited time, lack of marketing expertise, uncertainty about ROI, and fragmented data across multiple platforms. 

• Turn data into sales: Building on the enhanced Shopify integration, Mailchimp’s Site Tracking Pixel pulls consented ecommerce and sentiment data into one place. Marketers can build smarter segments (such as high-value buyers, at-risk customers, or shoppers likely to purchase next) and power advanced automations without stitching together multiple tools. 
• Reach customers across channels and tie campaigns directly to sales: Expanded SMS coverage across Europe2, SMS instant opt-in via popups, and unique discount codes in SMS automations and forms help brands reach their customers across the world on mobile while helping enable consent collection and precisely tracking which campaigns drive orders. Enhanced transactional messaging through a unified API lets developers trigger critical notifications while marketers manage on-brand content in Mailchimp. 
• Know what’s working and optimise with confidence: A revamped omnichannel marketing dashboard unifies email, SMS, automation performance, and ecommerce events in a single view. Marketers can see which messages and journeys are generating revenue, where customers are dropping off, and how to optimise spend across channels.
• Migrate to Mailchimp without slowing down: New migration tools, improved brand scraping, and ecommerce-specific support make it easier for customers moving to Mailchimp to bring over contacts, segments, templates, and key flows with minimal downtime.
• AI that goes from insight to execution: Mailchimp turns your data into action with predictive analytics to spot high-value and at-risk customers, AI-powered tools to quickly build on-brand content and reusable templates, and a ChatGPT integration that helps you create, refine, and launch data-backed omnichannel campaigns across email, SMS, and automations.

Demonstrated ROI for ecommerce businesses

Mailchimp already delivers measurable results for ecommerce customers, and the new capabilities are built to amplify that impact. Consider TravelOnline, an Australia-based online travel agency that partnered with Mailchimp to improve email deliverability and re-engage its subscriber base. By segmenting audiences and focusing on contacts from one domain at a time, the company saw a 66% rise in open rates, 38% decline in unsubscribes and a 13% increase in overall email ROI. 

“Once we had the capacity to dive deeper into segmentation, the impact was immediate. More intentional targeting has really lifted engagement,” said Sheri Adamson, Marketing Manager at TravelOnline. “The support from Mailchimp in Australia came at the perfect time for us. Having that support helped us focus our energy and keep the momentum going.”

Ecommerce customers reported an average of 16 hours saved per week after implementing Mailchimp3, while Mailchimp SMS ecommerce users saw up to 22x ROI4 after launching their first SMS Marketing campaign. And Mailchimp customers that connect their accounts with Shopify are seeing up to a 41x return on their Mailchimp investment5.

“We’re a global business available in nearly every country across the world, and we’re delivering incredible ecommerce innovation that delivers real ROI,” said Ciarán Quilty, Senior Vice-President for International, Intuit.  “We’re giving small and mid-size businesses connected data, automation and AI that simply work together, so switching to Intuit Mailchimp isn’t just the easy choice today, it’s essential for their growth tomorrow.”

By tying advanced marketing capabilities to commerce outcomes and Intuit’s broader financial platform, Mailchimp helps digital-sales businesses not only run better campaigns but also operate more profitable, data-driven companies.

Mailchimp product innovations availability

The new ecommerce-focused capabilities, including the Mailchimp proprietary Site Tracking Pixel, expanded SMS and transactional messaging, the omnichannel marketing dashboard, and enhanced migration tools, are expected to begin rolling out globally starting February 10th for eligible Mailchimp plans.

As the barrier to starting a business collapses and the “Founder” title surges across Australia, LinkedIn has launched Premium All-in-One – a new offering built specifically to help small businesses scale.

The launch comes as the entrepreneurial spirit in Australia reaches fever pitch. LinkedIn data reveals that between July 2024 and July 2025, the number of members adding ‘Founder’ to their profiles jumped 58%, and has more than tripled since July 2022.

AI is emerging as a leveller against larger competitors, with more than 3 in 10 (34%) Australian professionals saying AI has made them more likely to start their own business, and 39% say they would like to work for themselves in the near future. 

A further 57% of SMB owners agree that starting and running a business is easier today because of AI, and 79% of Aussie small business marketers agree AI helps smaller brands compete and punch above their weight. 

Matt Tindale, Managing Director, LinkedIn Australia & New Zealand, said: “Australian entrepreneurship is booming, with more professionals than ever striking out on their own. But we know that small business owners wear many hats with limited resources. Premium All-in-One gives founders everything they need to find customers, build their brand and hire talent in one place, with guidance on what to do next so they can focus on growing their business instead of managing their tools.”

In Australia, SMBs are growing despite constraints, with their average headcount growth nine times higher than larger firms in 2024. On LinkedIn, hiring among SMBs in Australia is up 5% YoY, compared to businesses with over 1,000 employees (-3% YoY).

A unified engine for small business:

To support this new wave of business owners, the Premium All-in-One suite is designed to move founders beyond ad-hoc AI use. It centralises the most important tasks founders face every day into a single workflow, including: 

• Streamlined hiring: With 86% of SMBs finding candidates within 24 hours of posting an AI-generated job ad, the suite includes dedicated tools to attract talent and AI writing assistants to help craft profiles and outreach messages.
• Automated brand building: Credits to boost posts to target audiences and access an ‘auto-invite’ feature that converts post engagement into followers. Early Premium All-in-One subscribers are seeing a 57% increase in followers and 40% more profile views. 
• Smarter selling: Daily prospect suggestions based on target criteria. Early data shows subscribers are 61% more likely to get replies from these suggested prospects.

LinkedIn Premium All-in-One is available to Australian small businesses starting today. For more information, visit https://premium.linkedin.com/small-business/all-in-one

Australia’s small businesses are powering ahead with optimism, resilience and discipline, however, mounting pressures on costs, wellbeing and consumer trust are testing their staying power. 

Thryv® Australia’s provider of the leading small business marketing and sales software platform, has released its 2025 Business and Consumer Report for Australia, a landmark survey of 1,023 small business decision-makers and 953 consumers. 

The findings reveal steady confidence and resilience across Australia’s Small Medium Business (SMB) sector, despite headwinds. Businesses are recording revenue growth, with 57% reporting increased revenue over the past year and 53% improving profit margins, while 64% expect revenue to rise and 62% anticipate further customer growth in the next six months. At the same time, rising input costs, wage pressures and payment delays are squeezing margins. 

At the demand end, 42% of Australian consumers say they are likely to choose another business if key digital tools such as online ordering, booking or mobile-friendly websites are not offered, signalling a clear expectation gap for those not keeping pace.  

Optimism anchored in discipline 

Australian SMBs are displaying measured confidence grounded in real performance. 

More than half (54%) believe the economy will improve over the next six months, 64% expect revenue to increase and 62% anticipate customer growth. 

Elise Balsillie, Head of Thryv Australia and New Zealand, said this optimism reflects confidence built on experience, not risk. 

“Australian SMBs are showing steady confidence and tenacity. They are growing revenues, investing in technology and hiring, however doing so with discipline. This is growth built on data and hard-earned lessons,” Elise said. 

According to Elise, this cautious posture is both a strength and a challenge. 

“It protects businesses in volatile times, however, over-caution risks missing opportunities when the market moves. Consumers are signalling clear priorities – 69% citing customer service as the key loyalty driver, followed closely by product quality and price (66% each). Businesses that channel investment into service consistency and customer experience will strengthen credibility and stand out,” Elise said. 

Investment and hiring intent 

The study also reveals encouraging signs of future investment. A majority of Australian SMBs are planning to increase their marketing (51%) and software budgets (52%) over the next six months, signalling confidence to compete harder in 2026. 

Hiring intent is also solid. Nearly 43% increased staff over the past year and 51% expect staff numbers to rise in the next six months, with only 3.8% anticipating reductions, underscoring confidence in future demand. 

“Australian SMBs are signalling intent to invest in their future,” Elise said. 

“More marketing spend, higher software adoption and recruitment plans all point to businesses being ready to compete harder and smarter in 2026.  However, intent needs to translate into customer alignment – from clear online communication to maintaining accurate reviews and digital listings, which consumers increasingly rely on to choose who they buy from.” 

Costs and margin squeeze 

However, the optimism is tempered by rising costs. 71% report increased costs of goods, 67% have raised their own prices, and 17% have seen payment times increase significantly with a further 34% reporting somewhat longer waits. 

“Revenue without profit is momentum without progress,” Elise said.  

“Business owners are working harder to achieve growth, however higher costs and slower payments are eroding profitability. It is the quiet squeeze that makes every decision harder.  Consumers are equally cautious – 57% of Australians say higher prices deter them from buying, while 37% cite limited product range and 40% say inconvenience impacts their choice. In this environment, transparency and service quality become decisive.” 

Service credibility gap 

The 2025 Thryv Business Index and Consumer Report also exposes a sharp credibility gap between SMBs and their customers. While 45% of SMBs believe they deliver consistently high service, only 25% of consumers agree.  Similarly, 33% of SMBs completely agree they offer a seamless customer experience compared with 20% of consumers.  

“Australian businesses believe they are delivering strong service, however, consumers are less convinced,” Elise said. 

“Friendly and responsive communication, which 63% of Australians cite as a trust driver, matters as much as price or product. When price pressures are real, service credibility becomes proof, not promise. SMBs that match their self-belief with consistent, responsive experiences will convert caution into loyalty.” 

A similar disconnect is evident in digital confidence. While 72% of Australian SMBs believe they have a strong online presence across their website, social media and reviews, only 49% of consumers agree.  

That gap represents lost loyalty and a missed opportunity. When prices are rising, service credibility becomes the single most important proof point, with 69% nominating customer service as a key reason to return. Consumers are also clear about what earns their trust: 64% are likely or very likely to leave a review after a purchase, yet only 38% of businesses consistently request them and 45% respond. Businesses that engage authentically with reviews will set themselves apart in a trust-sensitive market. 

“Consumers are saying, ‘meet me in my inbox.’ With 57% of Australians preferring email for communication, businesses still relying on phone calls or social media are missing the mark.” Elise said. 

Burnout and wellbeing 

According to the 2025 Business Index and Consumer Report, workload remains a serious concern. 45% of Australian business owners have considered stepping away due to burnout or workload pressures. Businesses cite managing costs (48%), acquiring new customers (47%) and work-life balance (46%) as their top pressures. 

“Burnout is no longer an isolated issue as it threatens succession planning, job security and the continuity of local services. We have to treat wellbeing as an economic factor, not just a personal one.” Elise said. 

“From a consumer’s perspective, burnout shows up in slower response times or inconsistent service and that is when loyalty starts to fray. Investing in people’s wellbeing is investing in customer experience.” 

Financing dynamics 

Australian SMBs are using finance strategically to support growth. 

40% have sought new financing in the past six months, with 90% of those applications successful, and 64% say access to finance is now easier when compared to six months ago.  

Preferred options are personal savings (41%), bank loans (40%), credit cards (33%) and overdrafts (24%), highlighting both resilience and the personal stakes owners carry. 

“The ability to access finance more easily is a positive signal,” Elise said.  

“However, reliance on personal savings as much as bank credit reflects the pressure owners feel to underwrite growth themselves. Capital used well, especially for digital tools and service improvements, can be the difference between treading water and compounding advantage.” 

Digital adoption and the expectation gap 

Australia’s SMBs are leaning into digital tools, however consumers are moving faster. 

On the business side, 41% offer online booking, 36% have mobile-friendly websites, 33% run online stores and 45% use social media updates, with only 13% offering none of these features.  

On the consumer side, 43% expect online stores, 43% expect online booking and 42% expect mobile-friendly websites from small businesses. Nearly one in two (42%) are likely to choose another business if these core digital features are missing.  

Awareness of support is still patchy, with 52% of SMBs aware of government or industry programs for digital adoption, leaving a substantial opportunity untapped.  

“Tech confidence has to translate into execution,” Elise said. 

“Consumers expect seamless digital experiences and that is a direct signal: digital ease is now part of basic service, not an optional extra.” 

Significance of the study 

The 2025 Thryv Business Index Consumer Report is the first dataset in Australia to pair business sentiment with consumer expectations. With more than 2,000 voices surveyed nationwide, it sets a benchmark for confidence, credibility and growth. 

“We see optimism and serious intent to invest, however we also see exactly where consumers remain unconvinced. When 63% say friendly communication builds trust, 71% regularly check or value reviews, and 42% are prepared to move on if digital basics are missing, the message is clear. Service credibility, digital alignment and owner wellbeing together will decide which Australian small businesses turn resilience into enduring growth.” Elise said. 

State Results at a Glance