What is COLD Dining and Why it is Great News for Hospitality Venue Owners
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As cost-of-living pressures rise across Australia in 2025, many hospitality venues are tightening their belts and bracing for slower foot traffic. But we are excited to share there’s a surprising consumer trend that’s giving hospo and owners a reason to stay optimistic – it’s called COLD Dining.
No, it’s not about Winter or serving chilled dishes.
COLD stands for Cost-Of-Living Denial dining, and it might be one of the best behavioural shifts for hospitality operators to understand (and leverage) right now.
What Is COLD Dining?
COLD Dining describes a mindset where consumers, particularly younger Australians, continue to dine out despite rising costs and financial strain. In short: they know money is tight, but they’re still booking tables, ordering cocktails, and posting foodie shots online.
Why?
Because eating out isn’t just about convenience, it’s about lifestyle, identity, social connection, and escape.
Who Are the COLD Diners?
Gen Z and Millennials are leading the charge.
A recent News.com.au report shows that:
32% of Australians admit to overspending on dining out.
Dining precincts and food halls are booming, especially among urban consumers.
These diners are trading down but not dropping out: they may skip fine dining, but they’ll say yes to a $20 burger, a share-plate with friends, or a quirky dessert bar.
Why This Is Good News for Hospitality Venue Owners
1. Demand Isn’t Disappearing – It’s Just Evolving
COLD diners still value experiences, just not at any price. They’re willing to eat out if:
The vibe is right.
The food is shareable or photogenic.
The price feels justified.
You don’t need a Michelin star. You just need a well-priced, well-marketed offering.
2. Opportunity to Own the “Affordable Luxury” Space
Restaurants and bars that position themselves as “treat-yourself-worthy” without being extravagant are thriving. Think:
Bottomless brunch deals.
Cocktail-and-bites pairings.
Tuesday-night taco platters.
Interactive dining like Korean BBQ or dumpling DIY kits.
3. Emotional Spending Is Sticky
COLD diners aren’t eating out because they forgot how to cook, they’re eating out because:
It feels good.
It’s part of their identity.
It’s a moment of joy or normalcy in a stressful economy.
That’s the kind of behaviour that keeps repeat business alive, even when wallets are tight.
How to Attract COLD Diners to Your Venue
✔ Focus on Value Perception
Offer “small luxury” pricing – think under $25 specials that feel like a treat.
Promote group-friendly options: platters, happy hours, split bills.
✔ Embrace Experience Marketing
Highlight your ambience, service, and presentation.
Target the younger generations and make your venue Instagrammable – from décor to desserts.
✔ Loyalty & Repeat Business
Introduce low-barrier loyalty perks: free coffee after five visits, birthday offers, or mid-week promos.
Use your POS or booking system to track returning customers and personalise offers.
While many industries are feeling the pinch of Australia’s cost-of-living crisis, hospitality isn’t being abandoned – it’s just being re-evaluated by consumers.
COLD Dining proves that people still crave connection, indulgence, and experience. For venue owners who understand this behaviour shift and adapt their offerings, 2025 could still be a year of growth.
So don’t just focus on price — focus on value, vibe, and emotional connection.
