The Lipstick Effect: What It Means for Your Venue This Winter
People don't stop treating themselves when times get tough. They just get smarter about it.
There's a well-documented piece of consumer psychology called the Lipstick Effect. When money gets tight, people don't stop looking for small pleasures — they just find more affordable ones. Instead of a holiday or a renovation, they buy a good lipstick. Something modest, mood-lifting and guilt-free.
Researchers have even coined a term for it in the Australian context: COLD dining. Cost-of-living denial dining. People know they're being a little indulgent. They're doing it anyway, because they need it.
Winter is already a quieter season. Add cost-of-living pressure and global uncertainty and it can feel bleak. But venues that lean in rather than go quiet are the ones that come out the other side with stronger member loyalty and a healthier bottom line.
What the research says
- Household spending on dining out is growing slightly faster than restaurant meal inflation. Australians are going out more often, not less.¹
- Socialising and celebrating with others are the top two reasons Australians dine out. Value matters, but connection matters more.²
- Groceries, rent and energy are the top three financial stressors for Australian households.³ Promotions that offset these costs remove the exact barrier keeping members home.
Your membership is your superpower
Registered clubs have a genuine edge most pubs or restaurants can't match. Your members chose you. They signed up. And right now that relationship is worth more than ever — because you can offer something no competitor can: tangible value that offsets the very costs grinding them down.
Venues running fuel giveaways are reporting strong traction, and it makes complete sense. A fuel voucher doesn't just save money. It removes the mental barrier keeping members in their driveways. The promotion does the emotional heavy lifting before anyone walks through the door.
Other membership benefits worth shouting about this winter: member pricing on meals and drinks, exclusive draws and events, loyalty rewards, priority bookings and community connection.
The trap is assuming members already know. Most don't. Consistent, visible communication of what membership actually delivers is one of the highest-return investments a club can make.
Five practical moves for winter
- Print that gets seen. Flyers in letterboxes are still a great way to reach people. Print lingers in a way digital can't.
- In-venue signage. Every member who walks in should know what's on and what their membership is worth. A-frames, hanging decals, bistro posters — make sure it's in their faces.
- Social media: consistency over brilliance. Two or three posts a week showing food, events and community will outperform a polished campaign that runs for a fortnight and disappears.
- Email and SMS. A well-timed message about a mid-week special drives traffic on the days you need it most. Short, specific, easy to act on.
- Give people a reason, not just an invitation. "We're open" isn't enough. A compelling offer gives members permission to say yes.
The venues that come out of winter well are rarely the ones that went quiet and hoped for spring. They're the ones that kept showing up.
¹ Money.com.au / ABS Household Spending Indicator, 2025 ² FoodService Association Australia / Vypr, Consumer Preferences & Dining Habits Report, 2025 ³ Finder Consumer Sentiment Tracker, December 2025



