Gen Z leads food service rebound with $5.8b spend
The 18 to 24 age group now accounts for 11% of all food service traffic.
Australia’s Gen Z consumers are emerging as the driving force behind the food service sector, with Gen Z spending rising to $5.8b in 2025.
This marks a 6% increase from the previous year—outpacing most other demographics.
“Gen Zs are becoming one of the most influential consumer groups in food service,” said Roxanne Uy, senior manager at Circana, at the QSR Media Conference & Awards 2025 Powered by Red Bull.
“They’re digitally connected, value-conscious, and motivated by discovery—and they’re the ones showing up, even when other age groups are pulling back,” she added.
The 18 to 24 age group now accounts for 11% of all food service traffic, or roughly 470 million visits each year.
Unlike older consumers, Gen Z diners prioritise experience, convenience, and digital influence over loyalty.
More than half of their dining occasions are solo, and around 17% of visits occur through delivery or pickup. Uy said their choices reflect a “treat-yourself” mentality.
“They’re more likely to visit a café they’ve seen online, try a trending drink, or explore a menu item that looks good on TikTok,” she said. “Their decisions are spontaneous but experience-driven.”
Whilst Gen Z is leading the revival, older consumers are also contributing to the rebound, particularly those aged 50 and above, who continue to favour in-store dining and breakfast occasions.
After six consecutive quarters of decline, the industry recorded its first uptick in traffic, up 0.2% year-on-year (YoY) to June 2025—with younger diners leading the rebound through more frequent visits, increased spending, and a growing appetite for snacks and value-driven offerings.
Snacking is reshaping Australia’s food service landscape, growing 4% year-on-year to reach an estimated $8b in total spend—or 14% of the entire market.
“The snacking occasion has evolved from light bites into something more substantial,” Uy said. “We’re seeing more consumers opting for filling snacks that fit into their day, whether that’s fried chicken, wraps, or toasted sandwiches.”
The afternoon window now drives nearly half of all snacking sales, supported by hybrid work schedules and the ongoing appeal of quick, affordable indulgences.
The average spend for a snacking occasion sits at around $7, compared to $12 for breakfast and $17 for dinner.
Whilst classic staples like chips and fries remain popular, their servings have dropped 1% YoY, suggesting consumers are seeking variety.
In contrast, more “meal-like” options such as fried chicken, wraps, raisin toast, and pastries are seeing strong double-digit growth.
Beverage consumption patterns are also shifting. Although cappuccinos remain Australia’s top drink, their servings have declined 12%, whilst cold beverages such as kombucha and flavoured drinks are on the rise, particularly amongst younger consumers.
