Australia Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Australia Foodservice Market is Segmented by Type (Full-service Restaurants, Self-service Restaurants, Fast Food, Street Stalls and Kiosks, Cafes and Bars, and 100% Home Delivery Restaurants) and Structure (Independent Consumer Foodservice and Chained Consumer Foodservice). The report offers market sizes and forecast of the foodservice market in Australia in value (USD million) for all the above segments.

Market Snapshot

snapshot
Study Period:

2016 - 2026

Base Year:

2020

CAGR:

4.8 %

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Market Overview

The Australia foodservice market is projected to witness a CAGR of 4.8% during the forecast period, 2021 - 2026.

The COVID-19 pandemic has altered the entire changing consumption habits of consumers, and this trend is not only pivoted to Australia but is a global transition to wary about. The homebound scenario has been a prominent affair and the operation of food services were on an experimental basis. Although consumers had kept their tap on popular chains such as KFC, restaurants were mostly operational through online services or takeaway. Since out-of-home consumption had reduced drastically in the first phase, online delivery of food from these foodservice companies had increased during the period of the pandemic in the country.

Over the medium term, there will be several opportunities in the Australian foodservice market, considering the increase in the number of people eating away from home and a rise in interest toward ethnic cuisines, which are increasingly being offered in the Australian foodservice sector. The most popular cuisines among Australian consumers are Italian, Chinese, Thai, Indian, Vietnamese, Japanese, Korean, and Mexican.

Chained food operators showed steady and positive growth over the review period and are expected to continue to grow year-over-year during the forecast period. The foreign restaurants, such as McDonald's, Starbucks Corporation, and Yum! Ltd, continue to expand through franchises or joint ventures with the local foodservice companies that prefer to be franchisees of foreign brands rather than creating their own local restaurants. This strategy seems to provide better prospects for success since less effort is required to build brand value among the consumers in the market. ​

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal prepared outside the home. The Australia foodservice market is segmented by type into full-service restaurants, self-service restaurants, fast food, street stalls and kiosks, cafes and bars, and 100% home delivery restaurants. By structure, the market is segmented into independent consumer foodservice and chained consumer foodservice. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Full-service Restaurants
Self-service Restaurants
Fast Food
Street Stalls and Kiosks
Cafes and Bars
100% Home Delivery Restaurants
By Structure
Independent Consumer Foodservice
Chained Consumer Foodservice

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Key Market Trends

Increasing Preference for Fast Food Restaurants in Australia

Australians eat out on an average of two to three times a week, which is more than 50 million meals per week. The popular fast-food restaurant chains in the country are McDonald's, KFC, Domino's, Red Rooster, Subway, and Hungry Jacks. Among these, McDonald's was observed to be one of the most preferred fast-food restaurants by consumers, followed by KFC. However, there has been an increase in the number of consumers who are shifting their consumption patterns from fast food to healthy food.

Owing to the above factor, the major market players are responding to the growing health and wellness trend by offering healthier fast food options in their menus, in addition to their well-known offerings. For instance, McDonald’s, a leading market player in the country, with its large chain of stores (both company-owned and franchised outlets), has taken a pledge to make its Happy Meals healthier for consumers.​

Australia Foodservice Market2

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Growth in Chained Consumer Food Restaurants in Australia

Globally, there is a rise in the number of chained consumer foodservice restaurants. This trend is also reflected in Australia. Several international brands and food joints are exploring new markets and penetrating into the existing ones to expand their business activities and gain a competitive advantage. Thus, several players like McDonald's, Domino's, Pizza Hut, KFC, Subway, and Hungry Jack's (Burger King) are continuously engaged in developing their market cap by opening new outlets around Australia. Over the past decade, Domino’s has continued to expand its presence in Australia and had 693 outlets located across the country as of 2018.

Australia Foodservice Market2

Competitive Landscape

The market is highly competitive, with the presence of many local and independent restaurants. McDonald’s Australia, through both company-owned and franchised outlets, maintained its leading position in terms of value share. With the rise in the shift toward healthy food consumption, players in the market are strategically developing new products with functional benefits. Independent restaurants in Australia have a strong foothold in the market in terms of the number of restaurants. However, chained operators showed steady positive growth over the review period and are expected to continue to grow year-over-year during the forecast period. Some of the major players operating in the market include Starbucks Corp, McDonald's, Yum Brands, and Domino's, among others.

Recent Developments

  • In 2020, in order to improve payment systems, Amsterdam-based payment platform Adyen announced its partnership with Australia’s Hungry Jack’s to improve the point-of-sale (POS) terminal fleet, helping in unifying the in-store and e-commerce channels.
  • In 2019, Pizza Hut Australia introduced four dedicated cheesy vegan pizzas with plant-based mozzarella, following the efforts of Domino’s Australia, which launched the concept across 600 locations in the country in the previous year.
  • In 2018, ​​​McDonald’s Australia, a key food chain, expanded its presence in the country, with 45 new restaurants opened. It also has refurbishment plans for many of its current locations. Furthermore, it is expanding in rural areas across Australia to increase its customer base and brand visibility.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Self-service Restaurants

      3. 5.1.3 Fast Food

      4. 5.1.4 Street Stalls and Kiosks

      5. 5.1.5 Cafes and Bars

      6. 5.1.6 100% Home Delivery Restaurants

    2. 5.2 By Structure

      1. 5.2.1 Independent Consumer Foodservice

      2. 5.2.2 Chained Consumer Foodservice

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 McDonald’s Corporation

      2. 6.4.2 Yum! Brands Inc.

      3. 6.4.3 Hungry Jacks Pvt. Ltd

      4. 6.4.4 Domino's Pizza Inc.

      5. 6.4.5 Inspire Brands

      6. 6.4.6 Starbucks Corp.

      7. 6.4.7 Bucking Bull

      8. 6.4.8 Nando's

      9. 6.4.9 JAB Holding Company

      10. 6.4.10 Restaurant Brands International Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Australia Foodservice Market market is studied from 2016 - 2026.

The Australia Foodservice Market is growing at a CAGR of 4.8% over the next 5 years.

  • Starbucks Corp
  • Hungry Jacks
  • McDonald’s Corporation
  • Yum! Brands Inc
  • Domino's Pizza, Inc.

Are the major companies operating in Australia Foodservice Market.

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