Hybrid working patterns have reshaped the time, place and day people go out to eat in Melbourne and Sydney. The traditional Monday through Friday 9-to-5 work culture has evolved, giving way to a new dining-out dynamic.
Sydney’s increase in bar and restaurant spending has been more substantial than in Melbourne, growing at 44% and 38% since 2019, respectively, particularly at night. 1
Tuesdays and Thursdays in Sydney and Melbourne’s central business districts have seen a return of commuters, while restaurants serving the more residential areas have seen the growing importance of Mondays and Fridays.
Following a look at the dining scene in the Big Apple , this is the Mastercard Economics Institute ’s analysis of the “economic clock” in Australia. We focus on the evolving day and night economies in Sydney and Melbourne, looking at changes in spending by day of week and time of day.
The economic clock in the Sydney area has transformed over the last few years. We focus on the central business district and the greater Sydney area to get a sense of the economic changes.
In and around Sydney’s central business district, Thursdays are the new Fridays in Kings Cross, with the share of late-night spending (11 p.m.-6 a.m.) in the locality on Thursdays at 9.3%, versus 6.6% on Fridays.
Thursdays are the new day to have fun and party in the Sydney business district area. The share of night-time spending at restaurants and bars has increased from just 4.6% through April 2022 YTD to a whopping 9.3% in 2023. 2 This is just one example of the transformation we have seen across the Sydney business district.
Moving one postcode West from Kings Cross to the heart of Sydney’s central business district, the lunchtime share of spending throughout the work week has dropped roughly 4 percentage points, highlighting the evolution of hybrid work. At the same time, the lunchtime share of spending during the work week has rotated into residential areas, such as Dulwich Hill, where the share of lunchtime spend has increased an impressive 8 percentage points. 2
Zooming out beyond the central business district of Sydney and into the greater Sydney area, an emerging night-time culture is taking off in some places. For example, in the City of Parramatta, the first location in Western Sydney to earn the Purple Flag, a recognition of its vibrant, diverse and safe nightlife, the evening and late-night dining scene has grown. The share of spending during the evening hours has increased by roughly 4 percentage points, a growth rate of 104% above 2019 levels.
Another standout example of a transformed night-time economy is Lakemba, whose evening share of restaurant and bar spend has increased roughly 5 percentage points, representing an impressive growth of 144% versus the same time in 2019 . This is likely capturing Lakemba’s “Ramadan Nights,” a vibrant food bazaar that runs until 3 a.m. during the month of Ramadan. 2
The Sydney area has recently shifted towards diverse residential neighbourhoods and away from the central business district. However, our data shows that the economic clock is seeing shifts in the times of day and days of the week growing in importance. Sydney’s residential suburbs are adapting to this new way of living. For example, in Bellevue Hill, the breakfast share of spending has increased a whopping 10 percentage points above pre-pandemic levels, a growth of 129%. 2
In the same way that the pandemic upended daily life, it has also reconfigured the rhythm of the dining scene in Melbourne. Melbourne’s central business district’s share of spend during the week was more impacted than Sydney’s by the change to hybrid and remote work.
In 2019, 47% of Melbourne’s bar and restaurant spend happened during breakfast and lunch, but in 2023 that figure is down to 43%, a 4 percentage point decrease. The same trend isn’t happening on the weekends or in the Sydney central business district, suggesting changes to commutes may be responsible.
In bustling Southbank, lunchtime spending has increased 4 percentage points on Tuesdays and Thursdays – when many office workers are on site. This underscores the interplay between work patterns and consumer behaviour. 2
Melbourne’s suburbs are fast turning into midday dining hotspots. The share of lunchtime spend in Clayton South increased an impressive 9 percentage points, likely, supported by hybrid work and its proximity to the central business district.
In South Yarra, the lunchtime spending share has slightly dropped, while evening spending has increased 65% since 2019, retaining its spot as a popular night-time destination. 2
Melbourne’s suburbs are experiencing an evolution. In places like Glen Iris, evening spending is rising, while in Keysborough, lunchtime spending is expanding. This suggests that the suburbanization of work and leisure is influencing local economies, challenging traditional spending dynamics. 2
The changing economic clocks of Melbourne and Sydney provide a crucial lesson for businesses and city governments: As work-life balance shifts towards a more hybrid pattern, so does consumer behaviour. Businesses may need to recalibrate their operations to align with these new patterns, optimising services for the new high-traffic days and expanding their offerings for the growing night-time economy.
For city governments, these shifts emphasize a need to rethink urban planning. As economic activity spreads beyond central business districts to residential neighbourhoods, it's critical to ensure that infrastructure, transportation and public services support this dispersed growth.
The “economic clock” is evolving, influenced by hybrid work patterns. This is not just a change in when and where people work but a broader shift in lifestyles. Ignoring these shifts could mean missing significant opportunities for growth and development. By keeping pace with the shifting economic rhythms, businesses and cities can better position themselves for the future.
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Footnotes
1 Mastercard Economics Institute analysis of aggregated & anonymized switched volumes across Melbourne and Sydney through April 2023 YTD relative to the April 2019 YTD. Nominal Australian dollars unadjusted for FX.
2 Mastercard Economics Institute analysis of aggregated & anonymized switched volumes across Sydney & Melbourne by day of week and time of day. Nominal Australian dollars unadjusted for FX.
About the Mastercard Economics Institute
Mastercard Economics Institute launched in 2020 to analyze macroeconomic trends through the lens of the consumer. A team of economists, analysts and data scientists draws on Mastercard insights - including Mastercard SpendingPulse™ - and third-party data to deliver regular reporting on economic issues for key customers, partners and policymakers.
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