Influencer marketing is experiencing a decline in the Australian hospitality sector, with only 8% of Australians relying on influencers for restaurant recommendations, according to new research from CRM platform SevenRooms.

The shift comes despite the fact that 47% of consumers use social media to discover new dining options, with 73% of Gen Z diners turning to these platforms for guidance.

As algorithms prioritise authentic content, 42% of Australian restaurants are planning to invest in brand collaborations by 2025. Meanwhile, online resources remain a dominant force in restaurant discovery, with 95% of Australian diners utilising platforms such as Google, social media, and media sites. Google, in particular, plays a significant role, with 34% of consumers discovering restaurants through the search engine. Consequently, 42% of operators are focusing on organic Google strategies, and 48% are investing in paid Google Ads for the upcoming year.

According to the research, the appetite for marketing updates remains strong, with 89% of consumers willing to sign up for such communications. Millennials, in particular, show the highest interest, with 97% open to receiving marketing updates. Partnerships with local businesses and the provision of exclusive perks are identified as top incentives for consumers to engage with restaurant marketing programs.

The integration of artificial intelligence (AI) is becoming increasingly prevalent in the hospitality industry, with two-thirds of restaurants having adopted AI technologies. Of those, 99% report seeing benefits. AI is primarily utilised in marketing (46%), customer service (37%), and data analytics (36%). Despite 74% of diners expressing comfort with AI-assisted reservations, only 27% of operators currently use AI for this purpose.

Consumer preferences are also evolving, with 74% indicating a willingness to pay more for unique dining experiences. Additionally, 82% of consumers value personal interactions, which can significantly influence their decision to return to a restaurant. The demand for non-meal items is also notable, with 77% of consumers open to purchasing items such as cookbooks or pantry goods from restaurants.

Communication preferences are shifting, with 47% of consumers favouring text messaging for connecting with restaurants. This method of communication is reported to have a 24X average return on investment for text marketing campaigns. Email remains a popular choice for marketing promotions, with 74% of consumers preferring this channel. Targeted, automated emails generate 11 times higher revenue compared to mass email sends.

Co-Founder & Chief Product Officer at SevenRooms, Allison Page, said: "Hospitality is both an art and a science, and we’re seeing firsthand how embracing the science enables the art...Operators are using tech, data and AI to streamline service and scale personalized experiences in ways that weren’t possible before. This report is a roadmap for how restaurants can deliver more memorable moments while running smarter, more profitable businesses."

Managing Director, APAC GTM at SevenRooms, Paul Hadida, said: "Australian diners are looking for more than a meal today. They want elevated, luxury experiences paired with exceptional hospitality."

"By adopting smarter systems and offering tailored experiences that extend beyond the dining room, restaurants can exceed rising expectations, foster deeper guest connections and build lasting loyalty. Those that embrace AI and automation, not to replace, but to enhance the human touch, in areas like reservations, marketing and guest feedback, will be best positioned to thrive," he said.