Gen Z Is Keeping Melbourne's Nightlife Alive — Just Ask Gracie's Wine Room
The success of Gracie's Wine Room proves Gen Z's appetite for nights out.
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Gracie's Wine Room is one of Melbourne's latest hospitality success stories. In an industry full of shuttered venues, price hikes, and quiet nights, at Gracie's Wine Room in South Yarra you can find bottles being popped, a bustling golden hour courtyard, and bread always being broken with friends.
For owner Kelsie Gaffey, whose TikTok videos showing her process of opening a venue from scratch amassed hundreds of thousands of views, the current climate of people spending less and staying in more was one her concerned family warned her of.
Gracie's Wine Room
"Before opening Gracie's, our more conservative relatives warned us that people are spending less. [Gracie's] hasn't experienced this."
According to Kelsie, Gracie's Wine Room's main demographic of 23–33 year old women are actually spending more on nights out with their girlfriends than anyone else. New data from Visa backs Kelsie's observation up.
Melbourne is Australia's Number One Night-Time Hot Spot
The Visa Australia Night-time Economy Index 2025 is a new in-depth analysis that measures data such as spending, vibrancy, and venues open in cities across the country. According to the index, Melbourne has been crowned the number one night-time hot spot. This doesn't come as a surprise to Kelsie.
"Melburnians really know how to have a good time," Kelsie tells Concrete Playground. "The city has such a vibrant culture around wine, food, and spending quality time with mates, and we're genuinely spoilt for choice. There's always something happening, and that energy makes working in hospitality here incredibly dynamic and inspiring."
Gracie's Wine Room
The Visa Vibe Economy report, also commissioned by Visa and conducted by McCrindle, found that venues like Gracie's Wine Room have hit the sweet spot when it comes to the reasons Australians love to go out.
The main motivation for getting off our couches post-work is to enjoy a meal, catch up with friends and unwind from our busy schedules. Gen Z in particular are factoring night-time activities into their budgets with over half of them considering this type of social spending "essential". In fact, Kelsie has already seen an increase in patrons on weeknights as the weather has begun to warm up as well as a jump in their average spend per head.
Kelsie recognised this cultural sweet spot within her demographic and created a curated menu of share plates for friends to split over a bottle of wine. Customers can enjoy freshly shucked oysters, focaccia, and a snack plate of cured meats, cheese, and lavosh.
Gracie's Wine Room
"I wanted Gracie's to be known as a place where you connect with mates, drink some good wine and eat some good bread. I didn't want the frills and price tags that come with fine dining, and I really do believe that staying true to this is what has kept people coming back," says Kelsie.
With 73 percent of Gen Z's going out once or more a week, tapping into her own peers has helped to increase revenue and patrons through the door — even on weeknights.
How to Spend A Night Out in Melbourne
What does a dream night out in Melbourne look like for the 25-year-old founder? Kelsie shares that it always starts with a sunny afternoon.
"I'm definitely starting at Gracie's and then making my way down to Republic Economica before ending the night at HER Rooftop in the CBD."
Data from the Visa Vibe Economy Report found that of all the generations, Gen Z is the most adventurous, choosing to stray away from their local haunts and try new things, and just under half plan two activities in the one night to make the most of their city after dark. Half of Gen Z also believe that nights offer more new experiences than the daytime.
Kelsie agrees. "I love being able to experience something new every single time I leave the house for a night out. It's so exciting, and has unlocked some of my greatest memories with friends."
Gracie's Wine Room hasn't yet operated for a full calendar year, but Kelsie is feeling optimistic about the state of hospitality and business projection. At the heart of her success lies the Gen Z community that she built through TikTok.
"I never imagined it would grow into what it is today, but the community that's formed around Gracie's has been the most rewarding and unexpected part of it all."
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Lead image: Gracie's Wine Room
