Australian Restaurant and Cafe Association chief executive officer Wes Lambert said the industry was facing a “tsunami” of challenges. “Most restaurants and cafes have reported that their overall costs each year since Covid have exceeded what they feel they are able to pass on through menu price increases,” Mr Lambert said. “Now in 2026 they are facing a tsunami of issues that uniquely affect them, ranging from a drop in tourism, customers resisting higher prices and significant increases in overhead costs.

Wes Lambert, chief executive of the Australian Restaurant and Cafe Association, told Yahoo Finance he believes venues will need to add at least 10 per cent to menu prices this year in order to combat increased costs and still be in the same position, “not going forwards or backwards”.

Wes Lambert, chief executive of the Australian Restaurant and Cafe Association, said the pile-up of additional financial demands from the wage rise, Payday Super changes, the phase-out of junior pay rates and removal of credit card surcharges meant establishments would need to add at least 10 per cent to menu prices this year to maintain profit margins.