After years of pandemic-driven home consumption, Australian consumers are voting with their wallets for social experiences over solo drinking – and the implications stretch far beyond the pub industry.
Endeavour Group’s full-year results paint a clear picture of this behavioural shift. While the company’s retail liquor sales through Dan Murphy’s and BWS declined 1.2% to $10 billion, its hotel operations surged 4.1% to $2.1 billion, with momentum accelerating throughout the year.
The social experience premium
What makes this trend particularly significant for the broader industry is how comprehensive the pub revival has been. Endeavour’s hotels didn’t just see growth in one area – food, bars, gaming, and accommodation all posted gains.
“Sales growth was delivered across all four key business drivers,” CEO Kate Beattie noted, highlighting that this isn’t just about drinking, but about the whole social experience that hospitality venues provide.
The company specifically cited strong performance around “…key social occasions including Father’s Day, Christmas and Easter” – suggesting consumers are prioritising shared celebrations over home entertainment.
Endeavour’s actions speak as loudly as their results. The company invested in more than 1,000 new gaming machines during the year and launched a pub+ loyalty program that now boasts 480,000 active members, accounting for more than 25% of food and bar transactions.
Demographics driving the recovery
The earnings report reveals which consumers are leading this shift: those with “higher discretionary income and younger demographics” who have been “less impacted by the cost-of-living squeeze.”
These are precisely the demographics that operators rely on for growth – Millennials and Gen Z consumers who view dining out as essential social infrastructure rather than discretionary spending.
Notably, Endeavour’s data shows these younger consumers are driving growth in “ultra-convenience” channels and premium products (bottles of wine over $25), indicating they’re willing to pay for quality experiences and convenience.
Lessons for operators
The pub revival offers several insights for hospitality businesses:
Occasions Matter: The strong performance around holidays and celebrations suggests consumers are being more intentional about when they socialise – making those occasions more valuable.
Loyalty Pays: Endeavour’s pub+ program demonstrates that investing in customer retention through technology and rewards can drive a meaningful increase in transaction share.
Portfolio Optimisation: The company completed 27 hotel renewals and continues to invest in property improvements, demonstrating that physical space upgrades remain crucial for attracting modern consumers.
Market conditions remain challenging
This isn’t a story of unbridled optimism. Endeavour acknowledges that “consumer spending in the retail liquor market remains subdued” due to ongoing cost-of-living pressures, particularly in “outer suburban areas.”
The company expects conditions to improve only “as inflation moderates and real wages increase” – suggesting the hospitality recovery may be gradual and initially concentrated in higher-income areas.
What this means for the industry
If Endeavour’s experience reflects broader consumer sentiment, operators should prepare for:
- Increased competition for occasion-based dining as consumers become more selective
- The growing importance of loyalty programs in capturing reduced-frequency customers
- Premium positioning opportunities as consumers seek better experiences
- Geographic disparities as city venues, outperform outer suburban locations
The message from Endeavour’s results is clear: Australians are ready to return to social dining and drinking, but they’re being more intentional about it. For operators, this creates both opportunity and challenge – the customers are coming back, but they’re expecting more value for their spend.
As one industry observer noted, this shift from bottle shop to pub suggests consumers are prioritising the social infrastructure that only hospitality venues can provide. For operators willing to invest in experience, loyalty, and occasions, the data suggests there’s genuine growth ahead.
