Australians’ appetite for fine dining continues to rise despite current economic challenges as the luxury retail market performs exceptionally well across the nation’s CBDs.

Many retailers are seeing growth above pre-pandemic levels, with the sector being driven by the luxury retail market, as spending expects to increase by 5.42% annually through 2027, largely by Millennials.

Data released by the Australian Bureau of Statistics in March 2022 indicates that Millennials (those aged 25 to 39) have overtaken Baby Boomers as the largest generational group in Australia, accounting for 22% of the population (5.6 million people).

Colliers Research associate director, Nik Potter explained that almost two-thirds (62%) of Australians under 39 currently do not own a home, meaning that the rising interest rates impact them less.

“When we couple this demographic with the higher savings rates and record low unemployment, it starts to present a segment of the Australian economy with a potentially high-level disposable income, who are immune to the current variability of rising mortgage rates, and keen to enjoy fine dining experiences across our CBDs, especially after the pandemic.

“In Australia, retail spending in restaurants and cafes grew 25.34% year-on-year in December 2022 and is currently sitting at 26.72% on a Moving Annual Total (MAT) basis to January 2023, with Sydneysiders and Melbournians having the biggest appetite.”

Colliers retail leasing director, Adam Lester added, “Fine dining food and beverage is currently Melbourne’s highest performing retail sector, with a surge in enquiry for high-end hospitality options within commercial buildings. We are currently experiencing a high volume of requests from landlords seeking more premium brands to occupy their spaces, as well as premium restauranteurs looking for flagship opportunities within the city.”