Cost pressures bite, but Aussies won’t give up their coffee
Media Release Posted Thursday 18 June,2026
Hospitality accounts for one in every 10 dollars spent
- Spending at cafés and restaurants up 7.6% year on year
- WA leads the nation for growth
Australians are tightening their belts, but still making room for coffee and the occasional night out.
New NAB data shows spending at cafés, restaurants and pubs rose 7.6% over the past year, with hospitality accounting for one in every $10 spent.
Growth is holding despite rising costs, wage pressures and tighter budgets, with operators moving quickly to win more selective spending and turn it into repeat business.
Western Australia recorded the strongest growth, up 8.5% year on year, followed by the Northern Territory at 7.8%. New South Wales and the ACT both lifted 7.1%.
| A blueberry matcha from Cafe Carlton. |
NAB Head of Small Business Victoria Dario Medugorac said customers are still spending, but more deliberately.
“Australians are still finding room for cafés and restaurants, even as budgets tighten,” he said.
“What we are seeing is more selective spending, and businesses that move quickly are the ones winning it.”
Café and restaurant spending rose 2.9% in May, outpacing overall consumer spending, which increased 1.1%. Operators say it comes down to speed, consistency and giving customers a reason to treat themselves.
Axil Coffee founder Dave Makin said the basics matter more than ever.
“People still want a small treat, even in tougher times,” he said.
“That means nailing the essentials: good coffee and quick service from the moment someone sits down.”
But extras can help drive growth. Axil has leaned into specialty drinks, including Mont Blancs, a cold brew coffee topped with cream and, traditionally, orange zest and nutmeg, selling hundreds each day across its 18 locations.
A trio of Mont Blancs from Axil Coffee.
“Mont Blancs are the biggest thing we have seen since smashed avocado,” Mr Makin said.
“It taps into that idea of affordable luxury. Customers understand what they are paying for, and they keep coming back.”
The group has also ramped up partnerships and pop-ups, including a limited-edition blend tied to the Audi Revolut Formula 1 team and expansion support for Brisbane café The Hideout Specialty Coffee.
Cafe Carlton sells five speciality drinks, like crème brûlée matcha, Earl Grey matcha and blueberry matcha, for every one traditional coffee drink like a flat white.
Owner Mert Sengul said trends go from viral to in-store within days.
“With most of our customers under 30, you have to move fast,” he said.
“We saw the New York dot cake take off online on a weekend, made it on Monday and were selling it Tuesday.
“If you don’t act, you miss it.”
| Mr Medugorac said businesses that balance agility with cost control are best placed to ride out current conditions.
“The strongest operators are using this momentum to manage costs, invest carefully and keep customers coming back,” he said. “Our role is helping them make the most of strong trading periods and be ready when conditions tighten.” Notes to editors: · Data sourced from NAB May Consumer Spend Trend report |
