Dan Murphy’s owner cheers Christmas as Aussies rush to the pub

Australians are rushing back to the pub in the lead-up to the end of the year and Dan Murphy’s owner Endeavour Group expects the surge to continue into the festive season as revenues jump across its hotels division.

The business generated just over $3 billion in sales for the first quarter of the 2023 financial year, with sales from its hotels up 90.8 per cent to $538 million compared to the COVID-hit first quarter of 2022 as customers spend up on food and accommodation.

Endeavour chief executive Steve Donohue said the company was looking forward to its first restriction-free trading period in three years this Christmas.

“Function bookings are already strong in our hotels, and we have a good supply of a great range of products to meet all tastes, trends and price points in our retail offers over the holiday season,” he said.

Donohue told an investor call on Monday morning that despite cost of living pressures, customers are actually showing up in larger groups and ordering more food than they had been previously.

“We are seeing larger groups coming together – a 10 per cent increase over the size of the booking,” he said.

The increase of digital ordering and payment options for food and beverage had also been a benefit for the amount of food that customers are willing to order, he said.

“More food and beverages are being ordered from more places in a hotel than ever before. The convenience of the hotel has markedly increased, as has consumers’ propensity to order.”

Asked about cost of living pressures, Donohue acknowledged that families were looking for better value days out than they had been previously, and the affordability of the pub experience could be a factor in increased interest in hotels.