Cost-of-living pressures reshaping customer spending

Australians are still visiting pubs, cafés and bars, but many are setting clear spending limits and moving away from buying rounds, according to new data from payments company Tyro.

Tyro's Eat Pay Love 2026 hospitality report combines analysis of hundreds of millions of food and drink transactions with a national survey of more than 2,000 consumers and 500 hospitality businesses. It points to shifts in ordering habits, payment preferences and alcohol consumption as cost pressures persist.

Nearly a third of respondents said they were less likely to buy a round of drinks, and more than half said cost pressures had changed their drinking habits when out.

"Australians haven't stopped going out, but they've hit their spending limits," Tyro CEO Nigel Lee said. "People are far more conscious of what they're ordering, who they're paying for, and what they're willing to spend. We're seeing fewer rounds being shouted, more people paying their own way, and technology helping people sidestep awkward money conversations as cost-of-living pressures reshape everyday social habits."

Rounds and rules

The traditional "shout" is becoming less common as groups tighten expectations around what is fair. Among Australians who have ever bought a round, 52% said they had paid more than $50, and almost one in five said they had spent $100 on a single round.

Half of Australians now pay only for their own order. Digital ordering and payment options are also influencing behaviour, with more than a third saying they use QR codes to avoid awkward money conversations with friends.

The report also identified triggers that shape how groups split bills. Ordering expensive items while expecting an even split was a turn-off for 47% of respondents. Being rude to staff was cited by 43%. Non-drinkers having to split a drinks-heavy bill was a turn-off for 39%, while 31% cited friends disappearing when it was their turn to buy a round.

Despite tighter budgets and shifting norms, socialising remained the main reason people went out. Just over half said they visited venues primarily to see friends, while far fewer went out mainly for food or drinks.

"Buying a round just isn't a given anymore," said Andrew Thomas, owner of The Oaks Hotel. "When every beer and cocktail comes at a different price, people don't want to get stuck paying for someone else's more expensive order. We're seeing more customers prefer to pay their own way, particularly older customers. A great pub experience still matters, but value plays a much bigger role in what people choose to order."

Alcohol shifts

Some Australians are moderating alcohol consumption when they go out. More than half said cost pressures had changed how they drink, and 13% said they had cut down or stopped drinking alcohol.

The shift appears stronger among younger cohorts. Eighteen per cent of Gen Z respondents and 14% of Millennials said they had cut down or stopped drinking alcohol.

Alongside fewer rounds and more individual payments, the data points to a cautious approach to discretionary spending. Two-thirds of respondents said they never tip. Tyro's transaction data suggests tipping remains uncommon in practice, with one in 100 restaurant transactions including a tip in December 2025.

Price ceilings

The report highlights what it describes as price ceilings for everyday purchases such as coffee and beer. Respondents said they would pay a maximum of $6.60 for a coffee on average, and expected the price to reach $6.70 this year.

Consumers also expected coffee prices to rise sharply over the next decade, to $9.70 by 2030 and $13 by 2035. The report suggests that could push some customers out of the market.

Beer showed a similar pattern. Respondents said they would pay $9.80 on average as a maximum for a schooner. They expected the price to reach almost $10 by the end of 2026, then rise to $13.70 by 2030 and $17.70 by 2035.

Younger customers reported greater tolerance for higher prices than older cohorts. Gen Z and Millennials said they were willing to pay more than $7 for a coffee and more than $10 for a beer. Baby Boomers capped spending at $5.70 for coffee and $8.80 for beer.

Business pressures

While consumer spending remains under pressure, many small hospitality businesses remain confident about their near-term prospects. Eighty-six per cent of surveyed owners expected to still be operating in 12 months.

Rising operating costs were the leading concern, cited by 42% of owners. Reduced customer spending followed at 32%, and rent pressures at 25%.

The report also highlights the role of weekends and public holidays in venue economics, amid ongoing sensitivity about surcharges. Three in four Australians said they dislike paying higher prices on weekends or public holidays, and nearly a third said they actively avoid venues that charge more.

Transaction data indicates these periods continue to generate a disproportionate share of takings for bars. Weekends accounted for about 41% of total transaction value, despite representing 29% of trading days.

Pricing flexibility could influence whether some venues open on higher-cost days. If public holiday pricing was removed, 31% of surveyed businesses said they would stop trading on weekends and public holidays, 25% said they would need to raise prices, and 9% said they would need to close entirely.