On-prem reservations up, off-prem sales down, in Mother’s Day forecasts 

Data provided by SevenRooms and Roy Morgan ahead of this Sunday’s Mother’s Day predicts a boost for on-premise trade and a decrease in alcohol and food gifts when compared to last year. 

The anticipated rise in on-premise reservations is visible in both datasets, with the research released by the Australian Retailers Association (ARA) in collaboration with Roy Morgan expecting a 5% increase in the gifting of an experience (trip away, dinner out) when compared to 2023 and SevenRooms showing a 10% increase in reservations in Melbourne ahead of Sunday. The number of reservations in Sydney, on the other hand, has remained consistent with those of 2023.

According to Paul Hadida, SevenRooms Managing Director - APAC, “while reservations in Sydney for Mother’s Day remain consistent with 2023 and national reservations have experienced a slight dip, there has been a notable jump in Melbourne, which has seen a 10% YoY increase in the number of reservations compared to 2023.

“In a foodie-famous nation, Melbourne perhaps stands out as the jewel in the crown according to many critics. Its patrons are clearly as eager as any to celebrate the people they love at the venues they love.”

The on-premise surge, albeit slight, comes at a much needed time for the industry currently faced with reduced consumer spending as a consequence of cost of living pressures. It has also seen a notable transition from breakfast to lunch bookings.

“This year, the most popular booking slot is midday, after 9am being the most popular time,” said Hadida. 

“There are numerous factors that could contribute to this, but as venues continue to focus on how they can elevate the experience to improve revenue and retention rates, many are targeting lunch rather than breakfast as the meal to build this experience around.”

According to Hadida, major calendar events such as Mother’s Day increase in importance for venues when spending is reduced.

“Even during periods of economic pressures, like those that Australians are currently facing, events like Mother’s Day are hugely important for families celebrating loved ones; it’s an important day not only for everyday Australians but for venues too.”

Research performed by the ARA in collaboration with Roy Morgan forecasts that Mother’s Day gift spending is expected to total $995 million this Mother’s Day, a 7.5% increase on 2023. However, it also forecasts that the amount of Australians buying gifts this year will be 400,000 fewer.

“Consumer spending has softened over a prolonged period of time, but Australians are still eager to get out in force - and spend big - for special occasions and exceptional experiences at their favourite restaurants, cafes and bars,” said Paul Zahra, CEO at the ARA. 

According to the ARA and Roy Morgan research, 2024 will also feature a 29% reduction in the gifting of alcohol/food, down 29%.  

“While the cost of living might deter personal indulgences, people remain eager to treat their loved ones. Champagne and chocolates remain a popular choice with family gatherings and dinners also popular, benefiting the food and hospitality sectors,” said Zahra. 

Paul Hadida says venues should be looking to cater to changing consumer habits in order to improve the overall guest experience.

“Consumer spending has softened over a prolonged period of time, but Australians are still eager to get out in force - and spend big - for special occasions and exceptional experiences at their favourite restaurants, cafes and bars,” he said.

“We’re seeing a very notable trend in venues increasing the value - and therefore the guest experience - they provide, using that as a driver of loyalty,” he said. For example, across Australia throughout 2023 there was a 26% YOY increase in reservations completed with prepayments, like an upgrade, experience, special event, deposit etc. 

“On average, venues generated 25% more in revenue from prepayments in 2023 than 2022. Clearly, that showcases the impact of a stellar guest experience, not just from when they sit down in a venue but from the very first touchpoint.”