Recipe for resilience: how restaurants are adapting for the future

Online delivery has enabled restaurants to insulate their businesses from fluctuations in consumer demand, staffing and business seasonality. This revenue diversification is fuelling optimism.

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The simple act of dining out (not to mention dining in) has fundamentally changed over the past few years, and Australia’s restaurants are at a critical juncture. On one hand, they’re facing rising rents, climbing utilities and inflated ingredient prices. On the other, their customers have pulled back on discretionary spending due to cost-of-living pressures.

It is no wonder many restaurant owners feel like they are navigating a storm on two fronts. Despite this, there’s tempered optimism. Testament to the resilience and resourcefulness that has long defined this sector, restaurants are adapting in innovative ways that meet the challenges of the current climate.

The Uber Eats Restaurant Pulse Check Report examined millions of transactions and combined first-hand insights from the small business owners powering neighbourhood restaurants. It found that hospitality business owners, like many other enterprising Australians, are scrutinising every aspect of their operations and seeking creative ways to reduce costs and enhance revenue. This might include re-evaluating their menus to align with current consumer preferences and budgets, embracing technology to streamline their operations, or finding creative solutions to staffing and rosters.

One thing restaurant owners consistently identify – and often tell me in person – is that an important strategy for growth is placing additional focus on online food delivery, and for good reason. Online transactions were up 12.5 per cent year on year (from July 2023 to July 2024) compared to on-premise spending, which increased by just 3.3 per cent. Focusing on the digital share of the wallet has provided a boost for restaurants, offering an invaluable additional revenue stream with near-zero capital investment.

While top-of-mind concerns for restaurateurs range by state or territory – from competitive pressures in Western Australia to supply chain concerns in NSW and utility costs in Victoria – nearly all respondents nationally said that delivery platforms had increased their revenue over the year. Moreover, online delivery has enabled them to insulate their businesses from fluctuations in consumer demand, staffing and business seasonality.

Ed Kitchen is Managing Director, Uber Eats Australia & New Zealand

This diversification in revenue is also fuelling optimism, with more restaurants that use delivery platforms reporting that they think their business will be in a better financial position in the next 12 months than those that don’t.

Critically, no business wants merely to stay open; they want to thrive, and for our business to do well, we need our partners to do well. Restaurants that use online food delivery and follow customers’ preferences and demands – such as promoting off-peak dining, pricing competitively and surfacing limited-time offers – are increasing customer awareness and overall orders.

Many restaurants are also looking to address customer concerns about the environment, as well as their own, by moving towards greener choices such as locally sourced ingredients and sustainable packaging. In fact, almost one in five restaurants have introduced more sustainable and eco-friendly dining offerings over the last year. This move is supported by Uber Eats’ partnership with Planet Ark, an organisation that is helping restaurants transition to sustainable packaging options.

As we look to the future, it’s important to recognise the integral role that restaurants play in our communities. They are not just places to eat – restaurants provide an important connection to the fabric of our neighbourhoods. They’re the places we go to celebrate milestones with our friends and family, to enjoy a date night, or the spots we turn to for a satisfying meal when we’re short on time or inspiration at home. Restaurants today are a reflection of the wider Australian spirit – a willingness to adapt, innovate and persevere.

Ed Kitchen is Managing Director, Uber Eats Australia & New Zealand.