Why 2025 Feels Like a Turning Point for Hospitality

“The hospitality industry is just like Rome—we lurch from one kind of disaster to the next, but in between, it’s just so much fun.”

This quote from Loaded CEO, Richard McLeod, has stuck with me. It captures the essence of our industry—one that’s constantly evolving, brimming with challenges, yet bursting with possibility.

Because there is something poetic about hospitality. It’s an industry that thrives on human connection, where experiences are crafted, shared and remembered. It’s about more than food or drinks; it’s about bringing people together, creating memories and celebrating life’s moments. 

Yet, behind the scenes, it’s a complex, ever-changing landscape, shaped by shifting consumer expectations, rising costs and the relentless march of technology.

As I read through Lightspeed’s 2025 Hospitality Insights and Dining Dynamics Report, I found myself not just seeing data, but seeing stories—of change, of resilience, of opportunity. The numbers aren’t just figures on a page; they’re reflections of human behaviour—the cultural shifts of an industry on the brink of transformation.

I get the feeling that what we’re about to witness is a recalibration of what hospitality can be. Dining activity is on the rise—Australians dined out an average of 8% more in 2024, while takeaway orders surged by 34% year on year. We also saw an increase of 22% in drinking out in 2024. 

With more people eating, drinking and ordering out, it’s an exciting time to be part of an industry that’s evolving to meet these growing demands.

Here are some of the key shifts that have me thinking about where hospitality is headed and how we can navigate the path forward:

1. The rise of dietary prioritisation: a shift towards inclusivity
2. Tipping & transparency vs. surcharging: a balancing act
3. The evolution of technology: from cost savings to operational efficiency
4. Looking ahead to 2025: a future defined by innovation and resilience

The rise of dietary prioritisation: a shift towards inclusivity

There was a time when dietary requirements were considered inconveniences—special requests met with a sigh or an eye roll. But today, they’re at the heart of how we dine. More than just trends, they reflect cultural shifts towards conscious consumption, health awareness and inclusivity.

Compared to last year, venues are doubling down on catering to dietary needs, signalling a growing commitment to such inclusivity. This is not just about meeting the demand; it’s about embracing a broader cultural movement. 

People are more informed, more vocal about their choices and more connected to the values behind what they eat. Whether it’s plant-based options, gluten-free alternatives or allergen-friendly choices, expectations that venues cater to dietary requirements are rising within consumers.

The report showed us that while 43% of venues are planning to expand their vegan or plant-based offerings, only 12% of customers see it as a priority. 

On the surface, it appears to be a disconnect, but look closer, and it can reveal a more nuanced narrative—one where businesses may not just be reacting to current demand, but could be anticipating future shifts. It’s a forward-thinking strategy that can position venues as leaders in a more inclusive dining landscape.

This indicates to me that this evolution goes beyond food choices and veers towards the experiences themselves, welcoming everyone to the table and making each guest feel seen and valued. For venues, this is a golden opportunity to craft narratives that resonate on a deeper level.

Tipping & transparency vs. surcharging: a balancing act

There’s also a delicate dance happening around tipping and surcharges, and one that can reveal a lot about our evolving values. 

Nearly half of Australians say they’re more willing to tip when they understand where the money goes, showing an increasing desire for transparency and a growing appreciation for the people who make our dining experiences memorable.

But within lies a paradox.

While consumers can be willing to tip when they see the value, more than 60% still oppose weekend surcharges. It’s a challenging contradiction. People want to support hospitality workers, yet some resist the structures designed to help ensure sustainable operations.

This tension between generosity and cost-consciousness speaks to a deeper cultural shift. It’s about how we value experiences, how we perceive fairness and how we understand the cost of service. 

It all comes down to trust. 

In an era of growing transparency, it’s never been more crucial for venues to be open and honest about their pricing structures.

Venues that take the time to explain the reasoning behind their pricing—whether through digital menus, signage or staff training—can be better positioned to bridge the gap between perception and reality. 

This isn’t a case of justifying costs; it’s a means to bring the customers into the narrative, making them part of the experience and helping them understand the true value of dining out.

The evolution of technology: from cost savings to operational efficiency

Another observation from the report shined light on how the role of technology in hospitality is transforming. While tech still angles towards an emphasis on cost savings, there’s also a reimagining of the fabric of operations—efficiency, agility and adaptability. 

In essence, it’s about time.

Time is the most valuable resource in our industry. It’s the difference between a rushed service and a memorable experience, between burnout and balance, chaos and flow. And technology is giving venues the gift of time.

By automating routine tasks—inventory tracking, order management, reporting—venues are freeing up staff to focus on what matters most: creating exceptional guest experiences. Again, it’s shifting the focus of the guest experience from transactional to emotional.

On the guest side, technology is removing friction, making dining more seamless and more intuitive, which can lead to it becoming more enjoyable. 

Tech is enhancing convenience without sacrificing experience.

Looking ahead to 2025: a future defined by innovation and resilience

I’m encouraged by the future I see. Even with growing challenges, the industry remains optimistic, with businesses forecasting 31% growth on average in 2025. It reflects the type of resilience that drives us forward. 

As we head into 2025, success will be defined by how well we adapt, how bravely we experiment, and how deeply we connect. Venues that leverage technology with vision can lead the way, but it will be about more than trends or technology; it will be about purpose, passion and people.

And that’s because hospitality is more than the food and drinks on the tables; it’s humanity—connecting with people to make them feel welcome and valued. It’s us who can create these moments that matter, and as the industry continues to evolve, this core truth will remain.

That’s the magic of this industry. Despite the challenges we’ve faced, and the challenges ahead of us, we’re forever excited about what’s next.