Consumer Foodservice in Australia

Abstract

Why buy this report

• Get insight into trends in market performance
• Pinpoint growth sectors and identify factors driving change
• Identify market and brand leaders and understand the competitive environment

Product coverage

Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent

Executive summary

Demand for quality, healthy food increases

Australians enjoyed increased disposable incomes over the review period, and this resulted in increased spending capacity. Their willingness to indulge in more expensive meals was a key factor that contributed to favourable growth in consumer foodservice. In addition, an increased number of Australians became concerned about their type of food in-take, and many moved towards healthy lifestyles. Hence, the increase in demand for quality and healthy food resulted in higher meal prices, boosting the value sales of consumer foodservice in 2006. However, growth in consumer foodservice value recorded a sales slow-down in 2006. This indicated that consumer foodservice in Australia had entered a mature phase, after its rapid expansion over the review period.

Go franchise to grow your business

Franchising was widely practised in Australia in 2006, and companies expanded their businesses locally and internationally because of the low cost and risks involved in franchising. This practice was popular especially with chained consumer foodservice outlets. The ease of following all operating guides provided by the franchiser, and the permission to use the franchiser' s logo, allowed a business to start up easily. Having so many benefits lined up, many local independents also converted to chains through franchises.

Cafés/bars, fast food and 100% home delivery/takeaway take the lead

In 2006, cafés/bars, fast food and 100% home delivery/takeaway experienced the greatest increase in current value growth. Many cafés/bars expanded their menus by offering light meals, such sandwiches, wraps and salads, in addition to the usual coffee and tea. Consumers, therefore, found it more convenient to arrange meeting up at these venues as it allowed consumers to stay longer after their meals and over coffee. Fast food and 100% home delivery/takeaway became popular as they provided consumers with the convenience and comfort of dining at home. In addition, many fast food and 100% home delivery/takeaways offered healthier menu choices.

Chained consumer foodservice rules

Over the review period, chained consumer foodservice expanded rapidly. Fast food outlets expanded the most, with Subway and McDonald' s holding the greatest number of chained outlets in 2006. The increase in retail rental at regional shopping centres also resulted in many chained outlets moving to sub-regional areas. Such a move allowed the businesses to operate at a lower cost and, at the same time, reach a desirable group of consumers. With the increase in sales and lower operating costs, many were able to expand their businesses with ease.

Branding and innovative products drive forecast growth

The value sales, number of outlets and transaction growth of consumer foodservice in Australia are all expected to increase over the forecast period. This will be because consumers will demand greater food choice, increased quality and innovative dishes. For this reason, product innovation and brand building will become vital in order to remain competitive and to build a wider consumer base. Sales generated from cafés/bars, fast food and 100% home delivery/takeaway are also expected to experience growth, as consumers will increasingly seek convenience, quick service and fresh food.