Cost-of living sparks new Gen Z dining out trend
A new dining trend has emerged amid the cost-of-living crisis proving that people aren’t willing to give up on small indulgences.
A new survey has revealed that a surprising number of Aussies are still overspending on dining out, even in the face of the cost-of-living crisis.
According to research by financial comparison platform Money.com.au, who surveyed 1000 Aussies, nearly one-third of people (32 per cent) admit they spend too much on dining out or takeout, despite economic pressures.
The survey found that younger Australians, particularly Gen Z (40 per cent), are the most likely to fork out too much on restaurant meals and takeaway, followed closely by Millennials (37 per cent).
In contrast, older Australians tend to splurge less on meals out and food delivery, with Gen X coming in at 26 per cent and Boomers at 21 per cent.
New ‘COLD’ dining trend emerges
Finance Expert, Sean Callery, explains that despite rising living costs, dining out remains a priority for many Australians, referring to the trend as ‘COLD’ dining – or ‘cost-of-living denial’.
“They know they should cut back but can’t resist dining out or buying takeout because it feels like a small indulgence in tough times, a social necessity, or simply more convenient than cooking at home,” he says.
“Our survey found that overspending on dining out or takeaway is the second worst financial habit reported, only trailing behind not budgeting or tracking expenses. This indicates that, for many Australians, the ease and enjoyment of dining out often take precedence over sticking to a budget.”
The states splurging the most
Victorians and Queenslanders are more likely to report spending heavily on dining out (at 34 per cent), followed by those in New South Wales (32 per cent).
Western Australians (25 per cent) and South Australians (24 per cent) are less inclined to splurge on eating out.
“People in the Eastern states might report higher spending on dining out because these regions have larger metropolitan hubs and naturally a more extensive food and cafe culture than the rest of Australia,” he adds.
Aussies spend more on dining out in the last four years
Household spending on cafes, restaurants, and hotels has jumped by 72 per cent since early 2021, according to the ABS Household Spending Indicator.
However, growth slowed significantly last year to just 4.3 per cent.
Money.com.au’s Research & Data Expert, Peter Drennan, notes that Australians are spending more on dining out not just because of rising prices, but also because they are dining out more frequently.
“Restaurant meal inflation was three per cent annually, while household spending on dining out grew slightly higher.
“This suggests that Australians aren’t just paying more due to price increases — they are actually dining out more often or splurging on higher-end meals,” he states.
Tips to stop overspending on eating out
Experts from the platform have shared some tips to help curb overspending on eating out.
Setting a dining out budget is a good start, so they recommend allocating a fixed amount each month for eating out and sticking to it, treating it like any other expense.
“Once the budget is exhausted, it’s home-cooked meals until next month!” they noted.
Next, they advise adopting the ‘one less rule’ by cutting just one dining out occasion per week or month.
For instance, if you usually grab takeaway four times a week, reduce it to three and pocket the savings.
“Seek out discounts and happy hours by looking for deals like two-for-one meals, weekday discounts, or happy hour specials to enjoy dining out for less,” they advised.
Also, make it a treat, not a habit, by reserving dining out for special occasions rather than convenience.
Pre-planning meals at home can also help avoid last-minute, costly takeaways.
Lastly, if you’re craving a restaurant meal, consider ‘dine-in dupes’ by recreating your favourite dishes at home.
It’s cheaper, healthier, and encourages creative cooking, with plenty of online recipes available that replicate top restaurant meals.
Woman spends $5k a month on dining
It comes after a woman revealed to news.com.au that she spends $5000 every month on eating out, revealing she doesn’t even have a pan in her house.
Winda Tiodang, 27, has been eating out at restaurants since she was 13 with her sister in Singapore.
Now, the marketing strategist has revealed she only buys her food on the go, revealing she eats out every day for breakfast, lunch and dinner.
However, the convenient habit comes with at a huge cost, totalling on average $80 per day and up to $200 for fancy dinners every second night.