How to chase profit in Australia’s hospitality landscape

For years, "resilience" has been the unofficial motto of the Australian hospitality industry. With rising costs, ongoing staff shortages, and shifting consumer spending, merely surviving has often felt like a victory. But the tables may finally be turning. 

According to their 2025 Hospitality Industry Report, 76% of Australian venue owners and operators expect to achieve a 20% surge in revenue this year.  

This is fuelled by a significant rebound in dining demand, proving that while challenges remain, a new era of opportunity is dawning for those with a strategic mindset. 

So, is it possible to chase profit in today's hospitality landscape?  

The answer is a definitive yes! But it requires more than just showing up. It demands a proactive approach, focused on three key pillars: innovation, optimisation, and cultivation. 

1. Innovate your offering: Go beyond the plate 

In a crowded market, profitability isn't just about what you sell, but how you sell it. Smart operators are focusing on menu engineering and revenue diversification to boost their bottom line. 

Engineer your menu for profit 

With customers being more price-conscious, a blanket price increase can be risky. Instead, analyse your menu to identify high-margin dishes with low food costs. Introduce these items as limited-time specials or as a new flagship item. This allows you to increase your average spend per customer without alienating your core patrons. 

Embrace the plant-based and "No-Low" trends 

Plant-based and alcohol-free options are no longer a niche, but a major profit driver. Consumers are actively seeking creative, flavour-forward plant-based dishes and sophisticated, zero-proof cocktails. By moving beyond the token "token dish," you can attract new customer segments and increase your average transaction value. 

Diversify revenue streams 

Your business is more than just a dining room. Look for ways to capitalise on your brand beyond dine-in service. Think about offering a signature pre-packaged product (like a pasta sauce or a coffee blend), starting a meal kit or catering service, or even launching a branded merchandise line. 

2. Optimise your operations: The efficiency imperative 

Profit margins are razor-thin, making operational efficiency more critical than ever. The difference between a profitable week and a losing one often comes down to savvy management of costs and workflow. 

Invest in smart technology 

Modern technology isn't a luxury; it's a necessity. AI-driven inventory systems can drastically reduce food waste, while integrated POS and online ordering platforms can streamline front-of-house operations. For venues looking to upgrade their gear without the large upfront cost, flexible finance solutions like SilverChef's Rent-Try-Buy can provide the essential equipment needed to boost efficiency and profitability. 

Audit your wastage 

Food waste is a silent killer of profits, and with rising supply costs, every dollar counts. A detailed wastage audit can reveal simple opportunities to save. Get creative with offcuts, turn vegetable scraps into stocks or use meat trimmings for sauces. 

Focus on energy efficiency 

Utilities are a major expense. Upgrading to modern, energy-efficient appliances can significantly lower your electricity bills over time, providing a substantial return on investment. 

3. Cultivate your customer base: The experience is everything 

While costs are a major factor, profitability is ultimately driven by demand. In a post-pandemic world, customers are seeking more than just a meal; they want an experience. 

Create a unique point of view 

Don't try to be everything to everyone. The most successful venues have a strong, clear identity. Whether it's a focus on hyper-local ingredients, a unique bar concept, or a specific vibe, having a strong point of view builds a loyal community that will keep coming back. 

Implement a data-driven loyalty program 

A well-designed loyalty program is one of the most effective ways to drive repeat visits and increase order size. Use your POS data to offer personalised rewards and exclusive promotions that make customers feel valued and incentivised to return. 

Prioritise staff training 

A well-trained and motivated team is your best asset. Invest in upskilling your staff on things like upselling, food and beverage pairings, and service excellence. When employees feel confident and valued, they deliver a better customer experience, which directly impacts your bottom line. 

Shooting for profitability 

In today's dynamic market, profitability isn't a guarantee, but it is an achievable goal. By embracing a forward-thinking mindset and leveraging innovation, operational efficiency, and a deep understanding of your customer, you can move beyond simply surviving and truly thrive.