Press release
Only 12% of Operators Say Now is a Good Time to Open a Venue, as Zeller Backs Hospitality’s Next Generation
MELBOURNE, AUSTRALIA - 2 June 2026 - Australian hospitality may still be woven into everyday life, but the dream of opening a venue is becoming harder to recommend, according to new research from Zeller, released to mark the launch of No Reservations, a national campaign designed to support the next generation of hospitality operators. The campaign brings together some of Australia’s most respected hospitality leaders to share the hard-won business lessons behind building a venue that lasts, as new Zeller data reveals that the sector is increasingly difficult for new operators to enter.
Zeller’s spending data show venues are serving 9% more diners vs the same time last year, yet diners are spending 13% less when eating out. At the same time, 3 in 4 hospitality operators say the financial pressure facing the sector is high or extremely severe, and 42% would not recommend someone open a new hospitality business in Australia today.
The tables are turning, but finances are becoming harder to make work
For diners, Australian hospitality still looks alive and well. Cafés are busy, pubs are full, restaurants remain central to how Australians celebrate, gather and connect. But behind the pass, the floor and the payment terminal, operators face a different reality. Zeller transaction data shows venues are serving more diners year-on-year, even as operators report softer foot traffic and lower spend per seating.
Pubs and bars have seen the sharpest shift, with average spend per diner down 24% year-on-year, while the average number of punters served is up 22%.
Cafés and coffee shops show a similar pattern, with average spend per diner down 15% year-on-year, even as the average numbers of diners served are up 25%.
Restaurants have been more resilient, with average spend per diner almost flat at -1.8% year-on-year, though the average number of diners served is down only 8%.
The findings suggest hospitality is not facing a demand crisis. Australians are still dining out, but are spending less, opting for lower-priced menu items, and ultimately putting pressure on a venue's already thin margins.
Business owners are managing the mounting strain
Zeller’s survey, conducted with 1,131 Australian hospitality operators and decision makers, found the pressure is being felt across almost every part of the business.
More than two-thirds of hospitality operators say profit margins are down compared to 12 months ago; 56% say revenue is down; 55% say average diner spend per seating has decreased; and 54% say foot traffic has declined.
Cost pressures are widespread, with increases reported across food and ingredients (94%), delivery and freight (90%), energy and utilities (87%), insurance (75%) and rent or property costs (68%).
Sourcing hospitality talent is an ongoing challenge, with 53% of operators ranking the staffing shortage as significant or critical, and 62% reporting it is harder to hire staff today than it was 12 months ago.
To keep venues operating, many owners are taking the burden on themselves. Almost three-quarters (73%) say they’re increasing hours worked themselves to reduce wage costs, while 47% have reduced rostered hours for paid staff and 40% have increased prices to diners.
Josh McNicol, Director of Growth at Zeller, said the findings show the gap between the consumer experience and the commercial reality of running a hospitality venue is widening. “Australia proudly operates one of the world’s leading hospitality sectors, but the business behind running a successful venue has become much harder to sustain. Our data shows venues are serving more diners, but earning less per transaction, while operators are absorbing higher costs across almost every part of the business,” said McNicol.
“That creates a difficult equation for established venues, and an even more challenging one for the next generation of operators trying to get started. The next generation of hospitality operators is not short on creativity, ambition or ideas, but that needs to be balanced with a strong business strategy, tools that give them greater financial visibility, and practical guidance from people who have already built venues that last.”
Who will build the future of Australian hospitality?
The data paints a challenging picture for current operators, and also pessimism around the opportunity for operators looking to get started.
Only 1 in 10 (12%) of operators surveyed believe it is still a good opportunity to open a new hospitality business in Australia today.
38% say that new operators should only launch a hospitality business if they have strong capital and industry experience.
42% would not recommend someone start a new venue right now because the risk is too high.
Operators say the biggest barriers facing the next generation of venue operators are high operating expenses such as wages and utilities (50%), difficulty sourcing capital or credit (49%), attracting and training talent (47%), intense industry competition (38%), finding a clear niche or specialty (38%) and generating a business plan that leads to profitability (34%).
The research also points to a skills and education gap. When asked what skills the next generation needs to be successful, operators ranked business operations and management first (32%), followed by financial management (28%), marketing and brand-building (14%) and recruitment / team-building (12%).
Passion is no longer enough
The No Reservations campaign sees Zeller partner with the founders of six of Australia’s leading hospitality venues including Alejandro Saravia of Renascence Group, Rosa Mitchell of Rosa’s Canteen, Guy Greenstone and Justin Joiner of Stomping Ground, Adele Arkell of Radio Mexico, Harry Kapoulas of Homer, and Mario di Ienno of Gerald’s Bar. The six-part video series showcases their hard-learned lessons to help equip the next generation of venue operators for success. Each episode explores different challenges in operating a hospitality business from planning a seasonal menu and hiring a team, to designing a venue, building a brand, delivering exceptional service and turning a profit.
Alejandro Saravia of Renascence Group said the next generation needs a clearer understanding of the business realities behind hospitality. “Hospitality has always attracted people with passion, but passion alone is not enough to keep the doors open. The next generation needs to understand the numbers behind the dream, how to manage costs, forecast demand, build a team and make decisions before pressure turns into crisis,” said Saravia. “The operators who last are the ones who can protect the guest experience while staying close to the business fundamentals. That is not always the glamorous part of hospitality, but it is the part that gives creativity a future.”
Zeller invests to support the next wave of venue operators
Alongside the video series, Zeller today announced the launch of a new hospitality grant program, offering two up-and-coming operators a $5,000 grant to help kick-start their business journey. The grant is designed to help new hospitality operators to get their business off the ground as they navigate a more complex economic landscape.
To watch the full series and apply for a Zeller Business Grant click here. You can also watch the trailer for the No Reservations series here.
About the research
Zeller surveyed 1,131 Australian hospitality venue operators and decision makers across all states and territories. Respondents represented restaurants, bars, pubs, nightclubs, cafés and food trucks, with the majority of businesses operating between one and five locations. Zeller transaction data compares hospitality spending and diner behaviour year-on-year across venue categories and states.
Media contact: press@myzeller.com