Insight of the Day: ‘In denial’: Gen Z dining out trend emerges
- InsightTrendsWorld
- Mar 16
- 5 min read
Why It’s Trending
Economic Paradox: Despite a cost-of-living crisis and tightening budgets, many young Australians—especially Gen Z—continue to prioritize dining out.
Small Indulgences Matter: In challenging economic times, the act of dining out remains a form of accessible self-reward, social connection, and momentary escape.
Cultural Resistance: This behavior, dubbed “COLD” (cost-of-living denial) dining, highlights how emotional and social needs can outweigh financial pressures.
Overview
A recent survey by Money.com.au found that nearly one-third of Australians admit to overspending on dining out, with Gen Z (40%) leading the trend. Despite rising costs, younger Australians are not cutting back on restaurant meals or takeaways, seeing these outings as essential social indulgences and convenient alternatives to home cooking. The trend is most pronounced in metropolitan areas of Victoria, Queensland, and New South Wales.
Detailed Findings
Survey Insights:
Overspending Rates: 40% of Gen Z and 37% of Millennials overspend on dining out, compared to 26% of Gen X and 21% of Boomers.
Regional Variation: Higher overspending in Victoria and Queensland (34%) and NSW (32%), with lower figures in Western (25%) and South Australia (24%).
Expenditure Growth:
Household spending on cafes, restaurants, and hotels has risen by 72% since early 2021.
Not only are prices increasing, but the frequency and quality of dining out have also grown.
Behavioral Drivers:
Social Necessity: Dining out serves as a social event and a way to feel normal during tough times.
Convenience & Indulgence: For many, the convenience and small indulgence of a restaurant meal outweigh the urge to cook at home.
Key Takeaway
Even amid economic pressures, Gen Z’s commitment to social dining underscores that small indulgences and the associated emotional benefits can be powerful drivers of spending—so much so that cost concerns are often set aside for the sake of connection and convenience.
Main Trend
Trend Name: COLD Dining (Cost-of-Living Denial)
Description: This trend reflects the paradox of rising living costs coupled with an unwavering desire among young consumers to maintain dining out habits as a form of small, necessary indulgence and social engagement.
Consumer Motivation & Trend Drivers
Consumer Motivation:
Emotional Reward: Dining out is viewed as a vital treat that provides comfort, social bonding, and a break from routine.
Social Connection: It’s a way to maintain relationships and create memorable experiences despite economic challenges.
What’s Driving the Trend:
Social Culture: In a highly connected society, the shared experience of dining out remains a cornerstone of social life.
Digital Influence: Social media and peer validation further encourage the habit by showcasing dining experiences as lifestyle benchmarks.
Motivation Beyond the Trend:
Beyond mere convenience, the act of dining out represents a statement of resilience—choosing to preserve quality-of-life rituals even when budgets are tight.
Description of the Consumers
Age:
Primarily Gen Z (late teens to early 30s), with Millennials also featured.
Gender:
The trend appeals across genders, though marketing and social media content may sometimes skew toward young women.
Income:
Typically middle-income young professionals and students who face budget constraints yet prioritize social experiences.
Lifestyle:
Urban & Social: These consumers live in metropolitan areas with a vibrant café and restaurant culture.
Digital Natives: Heavy social media users who value sharing experiences and follow lifestyle trends.
Experience-Oriented: They prefer spending on experiences—even small indulgences—that enhance their quality of life.
Conclusions
The “COLD dining” trend illustrates that for Gen Z and young Millennials, the value of social and emotional fulfillment can override strict budgetary concerns. Despite the cost-of-living crisis, dining out remains a non-negotiable social ritual—a small luxury that contributes to personal wellbeing and connectivity.
Implications
For Brands:
Targeted Offers: Create promotions and loyalty programs tailored to budget-conscious young consumers.
Value Messaging: Emphasize the emotional and social rewards of dining out, not just the product.
For Society:
Cultural Resilience: The trend highlights a broader cultural desire to retain social rituals and personal indulgences during tough economic times.
For Consumers:
Mindful Spending: While the trend shows the power of small indulgences, there is also an opportunity for consumers to balance enjoyment with financial responsibility.
Implication for Future:
The trend may drive innovation in affordable luxury dining, with brands seeking ways to offer quality experiences at accessible price points.
Trend Breakdown
Consumer Trend:
Name: Experience-Driven Spenders
Description: Young consumers who prioritize spending on experiences that enhance their social lives and provide emotional comfort, even when budgets are tight.
Consumer Sub Trend:
Name: Indulgence Seekers
Description: A subset that views dining out as an essential self-care ritual—a necessary escape and a means to stay connected socially.
Big Social Trend:
Name: Social Rituals Amid Economic Pressure
Description: A societal shift where traditional budget-conscious behavior is tempered by a strong desire to maintain personal and communal indulgences.
Worldwide Social Trend:
Name: Global Affordable Indulgence
Description: An international movement where consumers seek to balance rising costs with the need for quality-of-life experiences, maintaining social rituals even in economic downturns.
Social Drive:
Name: Social Connection Over Cost
Description: The drive to prioritize interpersonal relationships and shared experiences, even when financial constraints exist, reflecting a deep-rooted need for community and connection.
Learnings for Brands in 2025
Emphasize Value Beyond Price: Showcase the social and emotional benefits of dining experiences.
Innovate Affordable Offerings: Develop menu items and dining concepts that deliver quality experiences at lower price points.
Leverage Social Media: Use digital channels to highlight customer experiences and the joy of small indulgences.
Educate Consumers: Provide tips and tools to help consumers balance enjoyment with budgeting.
Strategy Recommendations for Brands in 2025
Develop Budget-Friendly Dining Options: Create value meals and limited-time offers that appeal to young consumers.
Implement Loyalty Programs: Introduce rewards that encourage repeat visits without breaking the bank.
Use Social Proof: Feature user-generated content and testimonials that emphasize the emotional and social value of dining out.
Promote “Treat Yourself” Campaigns: Run marketing initiatives that position dining out as a necessary, guilt-free indulgence.
Offer Digital Engagement: Create interactive online platforms where consumers can share their dining experiences and access exclusive deals.
Final Sentence (Key Concept)
The “COLD dining” trend shows that despite economic pressures, Gen Z’s commitment to social indulgences transforms dining out into an essential experience—a small, cherished luxury that defies cost-of-living constraints.
What Brands & Companies Should Do in 2025
Adopt a Value-Driven Approach: Focus on the experiential and emotional rewards of dining out in your messaging.
Innovate Affordable Concepts: Design menu items and promotions that deliver quality at a budget-friendly price.
Enhance Digital Connectivity: Utilize social media and mobile apps to create interactive, community-driven dining experiences.
Implement Flexible Loyalty Programs: Reward frequent diners with discounts, exclusive deals, and social engagement opportunities.
Educate & Empower: Provide customers with budgeting tips and tools that allow them to enjoy dining out responsibly.
Final Note
Core Trend:
Name: COLD Dining (Cost-of-Living Denial)
Detailed Description: A trend where young consumers prioritize small, social indulgences like dining out, viewing them as essential experiences that provide emotional and communal rewards—even when economic realities suggest they should cut back.
Core Strategy:
Name: Affordable Indulgence Marketing
Detailed Description: Brands should highlight the emotional and social benefits of dining out while offering budget-friendly options and loyalty incentives that resonate with cost-conscious yet experience-driven consumers.
Core Industry Trend:
Name: Budget-Friendly Experience Economy
Detailed Description: The hospitality and dining sectors are increasingly focusing on creating high-quality, affordable experiences that satisfy the modern consumer’s desire for social connection and personal indulgence.
Core Consumer Motivation:
Name: Desire for Social Connection and Small Luxuries
Detailed Description: Modern consumers, especially Gen Z, are driven by the need to maintain social rituals and enjoy personal treats as a counterbalance to economic pressures, valuing the intangible rewards of connection and well-being.
Final Conclusion:
Amid economic challenges, the “COLD dining” trend underscores that emotional and social fulfillment remains paramount for young consumers—making dining out a non-negotiable luxury that brands must address with innovative, affordable solutions.
Core Trend Detailed:
At its essence, COLD Dining is about defying conventional budget restrictions to preserve small, meaningful indulgences. This trend captures the resilience of Gen Z’s social and emotional priorities, driving a shift where affordable yet quality dining experiences become a vital part of everyday life, even in the face of rising costs.
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