Gen Z in Australia spend more dining out as Boomers cut back

New research from Square indicates that younger Australians are continuing to dine out and spend more, even as older generations reduce their outlay and prioritise affordability in the face of ongoing cost-of-living challenges.

According to Square's data, 19% of Generation Z (Gen Z) individuals are dining out more than once a week, compared with just 5% of Baby Boomers and 10% of the overall population, reflecting a significant divergence in social and spending habits between age groups.

The research also found that nearly a quarter (23%) of Gen Z are dining out more frequently now than they were a year ago, in contrast to just 5% of Boomers and 12% of the general population. Spending has also increased among the younger cohort, with 32% of Gen Zs indicating they are spending more on dining than last year, compared with 21% of Boomers and 23% of Australians overall.

Alongside increased frequency and spend, Gen Z diners are playing an active role in shaping hospitality trends, expressing a clear preference for community-focused venues, casual dining environments, and seamless, technology-enabled service processes.

Square's Hospitality Product Lead, Jean Magalhães, remarked, "Local restaurants with a strong sense of place are winning hearts. Data backs this up: over half of Aussies (53%) prefer a neighbourhood venue or growing restaurant group over a national chain."

The research examined changing mealtime preferences, finding that a notable proportion of Gen Z (26%) count brunch as their preferred occasion to dine out. This compares to just 8% of Boomers and 16% of the population overall. Across all age groups, however, weekday and weekend lunches and dinners were the most popular dining times, while breakfast options have seen a decline in favour.

A shift towards casual dining has also been observed, with 58% of diners expressing a preference for casual venues such as cafés and pubs, and a further 24% opting for fast-casual outlets, including takeaway establishments and food courts.

Quality of service remains a decisive factor for diners at full-service venues, with 82% of Australians stating that their decision to return hinges on the level of service provided. However, Gen Z diners displayed more tolerance for mistakes, with only 36% reporting that mixed-up orders would deter them, compared to 54% of Boomers. The younger demographic still places importance on speed, convenience, and frictionless experiences, especially in quick-service contexts.

Jess Aloi, Go To Market Lead at Square, commented on the role of technology in hospitality: "Tech isn't about replacing hospitality, it's about amplifying it. Using hospitality tech properly should free up wait-staff to spend more time with guests, or back-of-house systems that streamline operations. The goal is for tech to take on the heavy lifting and make service feel effortless."

Aloi added, "Technology should be the silent partner. It should remove the friction - so the warmth, personality and craft of hospitality can shine through."

Community-focused initiatives were highlighted as a driver of resilience in the sector. Magalhães said, "There's credibility in community. We've seen venues like Hope St Radio, which offers a platform for independent artists, or Little Lagos, which is bringing Nigerian food culture to Sydney, build loyal, resilient customer bases by becoming cultural and social hubs. These venues don't just serve food—they foster belonging. And that sense of connection is something Gen Z in particular are showing up for."

Magalhães continued, "In an industry under pressure, community isn't just a nice-to-have, it's a competitive edge. Whether it's shared staffing, precinct-based promotions, or just moral support, hospo venues that collaborate build resilience. It's that rising tide that lifts all boats."

Operators and industry figures shared practical experiences on how technology and community play out on the ground. Lorenzo Fantarella and Isaac Varano of Pasta Prego pointed to reduced friction as a major benefit: "We used to be four cooks in a corner staring at a wall of paper dockets, but Square's Kitchen Display System has been a total game changer. Tracking orders on a screen rather than relying on paper dockets has probably saved us 15 minutes on wait times on a busy night. That's great for service. Square's not just a payment tool for us; it's how we track trends, plan staffing, and respond to how people eat."

Michael Bascetta, Chief Product Officer at The Mulberry Group, stated, "If you can create something that's really wanted and needed in a particular community, then you'll have a group of people who will continue to come back again and again."

Bianca Stern, General Manager at All Things Equal, commented on the importance of a sense of community: "Community was 'everything' and 'without our community, we are nothing.'"

Almay Jordaan, Owner and Executive Chef at Neighbourhood Wine, Old Palm Liquor and Bahama Gold, said, "Good service is delivering what your customers expect — and if you don't know what that is, learn fast. The more you know about the customer beforehand, the less stressed everyone is — tech makes that possible."

Sandra Foti, Founder at Piccolina, highlighted the personal aspect that technology can support: "Hospitality from the heart — it's not just a transaction, it's a personal experience. Tech like Square helps us deliver that experience. It just works — it's fast, intuitive, and keeps the team calm, particularly during the rush."