Hospitality
The taste of success
Frankston City's hospitality scene is buzzing. Fuelled by a wave of new venues, revitalised precincts and a growing appetite for high-quality food, drinks, social and family-friendly experiences amongst our 146,000+ residents and 1.2 million annual visitors.
From beachside dining to laneway cafes and contemporary bars, the city is attracting operators who recognise the strength of our expanding population and year-round visitor appeal.
The gaps are clear. The timing is now.
Frankston City is one of Melbourne's most compelling locations for hospitality investment right now. Over 1.2 million visitors arrive each year. A wave of new apartment residents is moving into the Frankston Metropolitan Activity Centre. The fastest-selling residential development in Victoria in 2023 was in Frankston, driven overwhelmingly by local buyers, owner-occupiers, professionals and downsizers who eat out, drink locally and expect more than the market currently offers them.
The opportunity lies in the gaps of what is not here yet. And the businesses that move first will not be competing for market share, they will be creating it.
The demand is already here
Frankston's largest demographic growth segment over the last five years has been managers and professionals, now approaching parity with the Greater Melbourne average. Independent research commissioned by Council from Econisis consultants has identified the need for an additional 250 hotel rooms by 2031, with one or more premium offerings identified as the biggest single accommodation gap.
This is not a speculative market. The leisure and corporate traveller market is here for hospitality providers to capture.
Why Frankston City for hospitality investment?
- A growing, higher-spending catchment. Approximately 1,000 new CBD apartments are in the pipeline. The incoming resident profile (owner-occupiers, downsizers, professionals) represents a materially higher-spending demographic than the existing catchment. These residents will eat, drink and socialise locally.
- 1.2 million annual visitors. Frankston City draws visitors year-round, anchored by the foreshore, major events including the Waterfront Festival and Christmas Festival of Lights. The visitor base is large and growing.
- An accommodation gap with independent research behind it. Econisis consultants have identified the need for 250 additional hotel rooms in Frankston by 2031, significantly underpinning its attractiveness as a hotel investment destination. With existing and increased visitors, expected hospitality benefits.
- New purpose-built tenancies. Incoming mixed-use developments include ground-floor commercial sites with specifications for serious kitchen and hospitality operations. Sites that simply did not exist in Frankston City before are now becoming available.
- A market already proving itself. Recent openings, business expansions, and more operators looking at Frankston City all point to growing confidence in the market. Award-winning Commonfolk Cafe (voted Victoria's Best Cafe by The Age Good Food Guide 2025) and one of Melbourne’s most respected independent operators chose Frankston for its venue and has since expanded with a wine bar. The Sporting Globe, Moon Dog Beach Club, Hotel Lona, Bang Bang and Zambrero all chose Frankston, while The Hop Shop has built a strong craft beer following on Playne Street since 2020. Geonbae Korean Barbecue Restaurant also showed that Frankston diners will support and return to quality, experience-led dining. These are not one-off success stories. They show a growing market with real demand, strong local spending, and momentum continuing to build.
- Foreshore and waterfront positioning!! Few metropolitan locations offer what Frankston City does: a genuine beachside setting within an hour of Melbourne CBD, with foreshore dining and entertainment potential that coastal operators in inner Melbourne would pay a significant premium for.
Why now?
The demographic shift is underway. Apartment residents are arriving. The higher-spending catchment is building. New tenancies are coming to market with specifications that suit serious hospitality operators.
As the precinct fills and more operators recognise the opportunity, the first-mover advantage narrows. The businesses establishing now are building customer relationships, brand recognition and supplier networks in a market that is only going to grow.
Don't take just our word for it!
Karl Van Buuren, Co-owner of Moon Dog Craft Brewery:
"We chose Frankston based on its strong community base and steady flow of visitors year round. It acts as a central hub for the South East, catering to many of the neighbouring areas because of its large established retail and hospitality scene. People know to expect something a little but bold and unique when they come to Frankston, and we share that creative energy!"
Moon Dog Craft Brewery has venues in Frankston, Abbotsford, Preston, Footscray ad Docklands as of 2026.
Melanie Dry, Co-owner, Hotel Lona:
"We considered several locations for Hotel Lona. Frankston has so much to offer. It's a gorgeous waterside destination, easily accessible, with lots of public transport, and is the gateway from Melbourne to the wider Peninsula. Our patrons come from both near and far, as we are the perfect stop-in for lunch and dinner en route to other Peninsula destinations."
Sam Keck, Owner, Commonfolk Cafe - voted Victoria's Best Cafe in the The Age Good Food Guide 2025:
"The Mornington Peninsula is a bit of a rich person's playground but this is a community. You can live and work here, and it's got one of the best beaches in Victoria. Frankston won't be a secret for much longer."
Bruno Ceraso, Co-founder Rochella Group:
"We're seeing a lot of momentum and growth in Frankston, with the area in a state of rapid revitalisation. There's a lifestyle quality here that really resonates with us."
Council support
Frankston City Council supports hospitality businesses through site identification, local market data, connections to landlords and agents, and access to business grants and Council support programs. Our Investment Officer works directly with practitioners to match their requirements to available opportunities
Contact our Investment Officer