‘Save a bit of cash’: Aussies increasingly forgoing pre-work habit

New data has shown a growing number of Australians are forgoing one morning ritual in a bid to combat cost of living pressures.

New data has shown an increasing number of Aussies are ditching their pre-work takeaway coffee, as hybrid work arrangements and the high cost of living alter spending habits.

Transactions data from digital payments platform Square, reported by The Guardian, shows the number of purchases at food and drink businesses between 7am and 11am on weekdays have dropped to below pre-pandemic levels in Sydney, Melbourne and Brisbane.

At the same time, transaction volumes have risen during weekend brunch hours, signalling a change to how Australians prioritise their spending.

According to Square’s analysis of millions of cafes and restaurants, weekday breakfast transactions are down by more than five per cent in Melbourne, but up by four per cent on Saturdays and Sundays.

It’s a similar situation in Sydney, albeit to a lesser degree; transaction volumes are down 2.4 per cent on weekday breakfasts, but up 1.6 per cent during weekend brunch hours.

An increasing number of Aussies are ditching their pre-work takeaway coffee. Picture: iStock

‘We’re often told that making your breakfast at home or having cereal at the office are some of the easiest ways to save a bit of cash.’ Picture: NCA NewsWire

“During the week, we now work less,” the owner of Melbourne-based creperie and cafe businesses Roule Galette and Croque Monsieur, Michel Dubois, told the publication.

“But if you come on Saturday, there’s a queue before we even open. People are saying they are not buying as much during the week because of living costs, but they still want something nice on the weekend.”

Head of business development at Square in Australia, Colin Birney, told The Guardian that venues catering for professional workers are trying to adjust – starting an evening service to capitalise on the afterwork economy, opting to close an extra day, or sell groceries and other goods as a way to increase revenue.

More employees are working from home and packing their lunch when they do head to the office, and “that seems to be playing out as demand for weekday breakfasts decreases”, Mr Birney said. “We’re often told that making your breakfast at home or having cereal at the office are some of the easiest ways to save a bit of cash.”

Transactions on weekends at food venues are up. Picture: NCA NewsWire/Gaye Gerard

Last month, a report from CommBank iQ, a joint venture between the Commonwealth Bank and data firm Quantum Group, found Australians had dropped their overall spend on cafes and casual dining restaurants in the past 12 months, while fast food purchases were up.

Marketing Focus lead researcher Barry Urquhart, who has been looking into how consumers’ coffee habits are changing as the public tightens their budgets, told the ABC in May that while many people still head to their local cafe for their morning fix, they’re turning toward cheaper alternatives, like instant coffee, as the day wears on.

“When you ask someone about their coffee consumption and they want to rein it in, they’re not reducing the size of the cup, or changing the outlet, brand or going to the cheaper options like service stations or fast food outlets,” Mr Urquhart said.

“They’re saying, ‘No, it’s still important for me to have the good branded coffee I enjoy, made by the barista I know and trust’.

“All of those experiences are there, but they’re cutting back to the extent the supermarkets are now declaring instant coffee brands are booming.”