Last week, we sat down with our Executive Director, Mitch Stone, for our webinar Beyond the Benchmark: Unpacking FY25 Hospitality Wins. It was a chance to step back from the day-to-day and really look at what the numbers are telling us about the industry, and, more importantly, what it means for pub, club, and restaurant operators like you.
If you couldn’t make it live, here’s the wrap-up. Think of this as the “pub chat” version of the report: Not the full report, just the big takeaways that matter when you’re running a venue, managing costs, or figuring out how to get ahead in FY26.
Mitch summed it up nicely during the session:
“Sales are up 10% year-on-year, and if you can deliver that growth without adding more staff, it goes straight to your bottom line.”
National Performance at a Glance
Across Australia, venues recorded strong year-on-year growth, with sales rising 10% and averaging an extra $17,000 in weekly revenue. Gaming in particular stood out as a key driver, while efficiency gains continued despite cost pressures.
These topline results highlight a sector learning to do more with less. For the full breakdown on sales, wages, and EBITDAR, explore the FY25 Hospitality Industry Report. Â
Food and Beverage: Shifting Consumer BehaviourÂ
Food sales had a slow start but rebounded in Q2 and Q3, ending the year with consistent growth. Margins improved, with gross profit rising to 67% and wages falling to 30% of food sales.
On the beverage side, seasonal patterns were clear, with sales spiking during Easter and ANZAC Day thanks to extended public holidays. Beer remained dominant, holding 37% of the market, but ready-to-drink (RTD) beverages and non-alcoholic options were the fastest-growing categories. RTDs jumped from 5.6% to 7.5% of sales, while non-alcoholic beer brands like Heaps Normal recorded more than 20% growth.
Mitch explained the generational shift driving these trends:
“There’s a lot of data around younger demographics drinking less alcohol. They’re more health conscious, going to the gym rather than the pub. And COVID played a role, their social fabric wasn’t built around bars and clubs.”
Gaming: Metro vs Regional
Gaming turnover climbed 15% year-on-year, with the biggest gains coming in the fourth quarter. But how that growth is playing out looks very different in metro versus regional areas.
In metro hubs, pubs are increasingly outperforming clubs. They can refresh gaming machines more often, create stronger atmospheres with fewer machines, and invest in links and jackpots that appeal to younger demographics. Casinos, meanwhile, have seen steep declines, with regulatory pressure pushing spend back into suburban pubs and clubs.
In regional Australia, growth is being fuelled by both population shifts and metro groups investing in country venues. As Mitch put it:
“Post-COVID, we saw a lot of city people move regional but still earn city wages. That’s meant more disposable income flowing into country venues. Combine that with metro groups bringing investment and expertise into regional pubs, and you can see why they’re performing so strongly.”
Cost Pressures: Still in Play
Inflation eased overall, with the Consumer Price Index stabilising at ~2.2–2.4% compared to 5.5% the year before, but operators still felt the pinch. Eggs rose by 19%, coffee by 9.4%, and fruit and vegetables by 6.5%, with supply chain disruptions hitting margins.
Electricity costs climbed 12%, security rose 5%, and entertainment spending jumped 16% as venues invested more in live events to attract patrons. Insurance, however, finally stabilised after years of steep increases, offering welcome relief.
Mitch stressed the importance of agility:
“There are always going to be outliers, one year it’s lettuce, another it’s chips. The difference between profitable and unprofitable operators is how quickly you can react, strip those items out, and adjust your menu.”
What Top Performers Do Differently
While no two venues are alike, top performers share common habits. They rely on data-led decisions rather than gut feel, adopt systems like Salesline for labour forecasting and Cooking the Books for food costs, and maintain a relentless focus on wage efficiency as the number one driver of profitability.Â
They also sharpen margins through smarter procurement, often outperforming larger groups by tendering and renegotiating supplier contracts. And critically, they treat events as revenue catalysts, planning early around concerts, sporting tours, and seasonal peaks.
As Mitch reminded operators:
“A dollar saved is a dollar earned. If you can save a few dollars, it directly hits your bottom line. And often the biggest savings come from labour efficiency.”
Looking Ahead to FY26
Looking forward, the opportunities and challenges will differ between metro and regional markets. In metro areas, the focus will be on leveraging technology, refreshing product, and tapping into event-driven trade to maintain growth. In regional markets, continued investment from city groups, combined with shifting demographics, will underpin opportunity, but success will depend on applying the right systems and strategies locally.
One theme will cut across both: technology. AI and automation are set to move from buzzwords to practical tools, helping operators run leaner, smarter, and more profitably.
As Mitch said to close out the webinar:
“AI might not serve the beers for you, but it will add value and create efficiencies. It will affect the bottom line for operators who use it, and leave behind those who don’t.”
Our Perspective
FY25 showed that Australian hospitality is adaptive, innovative, and resilient, but metro and regional venues are facing different challenges and opportunities. For operators, the message is clear: combine data-led decisions with an understanding of your local market, and you’ll be positioned to thrive in FY26 and beyond.
At Quantaco, we believe the next big gains will come from smart systems, wage efficiency, and continuous “1% improvements” that compound into major results. Whether you’re running a venue in the heart of the city or a country town, the future belongs to operators who act on insights and move quickly.
Want to see this level of insights in your venue? Get in touch today!