‘Not worth compromising’: Why some Sydney restaurants are saying no to delivery

Takeaway and delivery may be on the rise and reshaping Sydney’s hospitality scene, but some business operators are pushing back, choosing instead to double down on old-fashioned hospitality.

“I don’t think ... it’s worth compromising on the experience,” says Katie Shortland, co-owner of Japanese restaurant group RaRa Ramen, which introduced delivery and takeaway during COVID but is now offering it less and less.

“There’s been a shift, certainly for us, back to when we were serving people bowls of ramen [in our dining room], rather than just handing over takeaway.”

Over the past 12 months the number of people choosing to dine in has dropped, with revenue falling from 31 per cent of total hospitality turnover to 20 per cent, according to Lightspeed’s State of the Industry report. At the same time, takeaway, delivery and online orders have continued to grow.

But for businesses like the Porteno Group, which has a reputation for delivering smart service, high-level food and offering a buzzy in-room atmosphere, takeaway and delivery don’t make sense.

“We did delivery during the COVID [period] but it doesn’t translate, and it’s not the experience people want for that level of food. You don’t get the immediacy, the atmosphere, the romance,” says Sarah Doyle, creative director of Paisano & Daughters, which includes Newtown restaurants Continental Deli and Mister Grotto, and Surry Hills’ Porteno, which this year celebrates 16 years.

Instead, the group looked at other ways to extend its offering. Its bakery, Humble, was originally set up to supply bread to its restaurants, but has since expanded. It also launched three accommodation suites above its Australia Street restaurants to offer diners not just somewhere to stay, but to enhance their visit to the eateries.

The changing dynamics of the hospitality industry were the focus of Monday night’s Good Food Symposium, hosted by head of Good Food Sarah Norris. It brought together five industry experts to discuss the pressures facing restaurants and what comes next.

The panel agreed there was no one recipe for success. “What works in one venue doesn’t always work in another,” says Doyle. “It’s about consistently working on your brands, pivoting when you have to, and working really, really hard. There’s no secret to it.”

For some operators, that’s meant moving into new formats. Federico Zanellato, who runs two-hatted LuMi Dining in Pyrmont, says the fine-dining restaurant model doesn’t allow for takeaway, but he identified a gap in the market for high-end bakeries. He established Lode Pies & Pastries in 2021 and he now has five locations across Sydney. He also launched fast-casual fro-yo chain Freo.

Zanellato says the shift to casual comes with its own set of challenges. “I thought [Lode] would be easier to run than a fine-dining restaurant, but it’s not. It still requires a huge amount of skill, commitment, time and money.”

The format – built on standardised systems – allows him to spend most of his time in the kitchen at LuMi focusing on the guest experience. “I think the human interaction is something that can’t be replaced,” he says.

Transit, a fast-moving format at the Sydney airport, inspired by Japan’s transport-hub dining culture.

It offers a different menu to its Redfern and Randwick locations, with rice bowls, grab-and-go salads and sandwiches designed for speed. “It’s a really incredible way for us to test new products and engage with a different part of the market,” she says.

Shortland has removed QR codes and returned to table service at the Randwick and Redfern restaurants, which she says has boosted team morale. “It’s become quite a rewarding experience for the staff and chefs, to see that level of engagement, and people just enjoying and expressing their love for food again.”

Along with panellists Zanellato, Doyle and Shortland, the fourth Good Food Symposium, presented by Lightspeed, featured Chris Theodosi, the co-owner of Happyfield and Happy Shop in Haberfield and Lightspeed’s Rob Stone, senior director of APAC hospitality.

Here are some more (ahem) takeaways from the discussion.

Know your brand

The importance of a strong, clearly defined brand was a theme – and how crucial it is to differentiate a venue in a crowded market. “Branding is more important than ever – in 2026 more so than 2020,” says Theodosi.

Happyfield and Happy Shop are known for their playful identity, which includes illustrated mascots, a sunshine-yellow palette, and a retro American diner aesthetic built around what Theodosi calls a “Happy” in-venue experience.

Much of the detail was mapped out months before opening. “Not just the logos, but what the plates were going to look like, what the cups were going to look like, the salt and pepper shakers, what shoes we were going to wear.”

Use technology as a tool

While artificial intelligence is becoming increasingly common, most panellists said they weren’t really using it (“I’m very scared of it,” says Zanellato) or if they are, only as a light operational tool.

Lightspeed’s State of the Industry report found that nearly all hospitality operators (98 per cent) reported using AI in some form, and more than one in four operators consider it essential technology for 2026.

Stone said most operators use it for things like menu optimisation and price alignment. “It’s one of the fastest-growing areas we’re seeing right now.”

Shortland says AI is helping to reduce administrative work, like calculating tips for her team for the month. “Now I can run it and do it in 40 seconds, and that’s an hour-and-a-half I can spend in the business that has a direct impact on the customer engagement.”

Erina Starkey