Australia’s cafe sector is seeing fewer visits, heavier use of discounts and less willingness to pay for extras, but new data also points to an opportunity in larger digital orders.
The 2026 Daily Brew report, drawing on Hey You ordering behaviour and Westpac DataX transaction information, found spending across Australia’s $10.15 billion cafe economy fell 1.4% year-on-year in June. The decline was driven by fewer customers and fewer visits rather than a major fall in spending among people who still visited.
That distinction matters. Average annual spend per customer was almost unchanged at $87.73, while the average coffee price increased by 1.65% to $4.69. The price rise was the smallest annual increase recorded since 2020. At the same time, discounted orders increased by 90%, paid milk modifications declined by 2% and upsizing fell by 1%.
The report also found a clear age divide. Visit frequency declined across every group under 55, with the sharpest reduction among customers younger than 35. By contrast, visits increased among customers aged 65 and over. Diners aged 75 and above spent an average of $21.81 per visit, compared with $15.98 among 18 to 24-year-olds.
Younger customers have not disengaged from cafes altogether. Matcha orders on Hey You rose by 133% year-on-year and much of that growth came from people under 35. The opportunity may therefore be less about trying to restore old purchasing habits and more about giving each age group a relevant reason to visit.
Digital ordering was another positive signal. In-person transactions still accounted for 93% of cafe spending, but online ordering was the only channel to grow, rising by 4.1%. Online orders averaged $47, compared with $17 in person, reflecting larger workplace, group and pre-ordered purchases.
For operators, the data supports a two-part response. The first is to protect the everyday visit with clear value and a menu that does not depend on constant blanket discounts. The second is to make larger orders easier through pre-ordering, office bundles, meeting catering and reliable collection windows.
Traffic may be soft, but the report shows demand has not disappeared. It is fragmenting across age groups, products and ordering channels. Venues that can see those differences clearly will be better placed to respond.
