Australia Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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

Market Snapshot

Australia Foodservice Market Growth
Study Period: 2016 -2027
Base Year: 2021
CAGR: 5.16 %

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Market Overview

The Australian foodservice market was valued at USD 47,001.57 million in 2021, and it is projected to witness a CAGR of 5.16% during the forecast period, 2022-2027.

The COVID-19 outbreak has affected customers' overall consumption habits, and this phenomenon is not confined to Australia but has hit on a global level. Further, many restaurants established new takeaway and delivery options in 2020 to continue to serve diners unable or unwilling to attend venues. Some restaurants take this step further with the rise of in-home fine dining experiences. For instance, Delia helped launch Providoor, a new online platform that connects Australian consumers with chefs to create at-home fine dining experiences.

The Australian foodservice market is driven by the increasing frequency of dining out amid time-pressed schedules and the growing influence of cross-culture dietary patterns due to the strong presence of foodservice providers offering Asian, American, Arab, and Mediterranean cuisines to the consumers.

Owing to the growing trend of veganism in the country, the restaurants in Australia are shifting toward offering healthier options, such as plant-based, locally sourced, and fresh foods. Major operators are investing in mobile apps, digital kiosks, tableside ordering systems, and dedicated pick-up areas or drive-thru lanes for mobile orders.

Scope of the Report

Foodservice refers to the companies that offer food and beverages outside of the house. The Australian foodservice market is segmented by type into full-service restaurants, quick-service restaurants, street stalls/kiosks, cafes/bars, and 100% home delivery restaurants. By structure, the market is segmented into chained outlets and independent outlets. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Full-service Restaurants
Quick-service Restaurants
Street Stalls/Kiosks
Cafes/Bars
100% Home Delivery Restaurant
By Structure
Chained Outlets
Independent Outlets

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Key Market Trends

Tourism Contributing Toward Australian Foodservice

Due to the tourism industry's growth and rise in inbound and outbound tourists, numerous foreign food service providers are able to enter the market and provide a wide portfolio of multi-cuisine offerings to customers traveling from all across the world. It has the potential to drive the foodservice industry across the country. A dip was observed in 2020 because of the COVID-19 outbreak. However, the situation improved in 2021 after the travel relaxation. The market is not only fuelled by foreign tourism but is also driven by a larger number of Australians who contribute toward domestic tourists every year. Among domestic tourists, the main items of the spend were transportation (33%), accommodation and food services (29%), shopping (12%), food and drinks (11%), travel agency and tour operator services, and recreational, cultural, and gambling activities (7%).

Australia Foodservice Market Trends

Chained Outlets Segment Holds the Major Share

The segment operates on a specialized business model that combines the offerings of traditional restaurants and fast-food services. Such concepts had a proven track record of successful growth in the country over the past years. Among all the fast-food chains, Noodle Box has been in an expansion phase with the acquisition of Wok In A Box. It is expected to operate over 100 outlets across the country. On the other hand, the change in consumer behavior toward regular fast-food chain outlets led to excessive spending across healthier alternative establishments, including seafood and Japanese cuisines. However, since most of the chained outlets are global foodservice giants, thus, they keep investing in marketing, expansion, or any other customer attraction gaining strategies to increase their revenue. One such example is Domino’s, the largest pizza chain in Australia, which was planning to open more than 260 new stores in 2021, compared with 163 the previous year, and it was actively looking to buy new territories and rival chains to add to its network of 2,795 stores.

Australia Foodservice Market Analysis

Competitive Landscape

The Australian foodservice market is fiercely competitive, with large businesses such as McDonald's Corporation, Yum! Brands Inc., and Domino's Pizza, holding a significant market share. Furthermore, organizations like Starbucks Corporation have used expansion, mergers and acquisitions, and product innovation as strategies to strengthen their competence. The company's primary focus is to provide innovative products that can efficiently cater to the demands of its consumers.

Recent Developments

  • In 2021, McDonald's Australia launched Cadbury Caramilk McFlurry, a soft serve blended with Caramilk chocolate flakes in the new McFlurry, as well as Cadbury Caramilk sauce.
  • In 2021, Yum! Brands completed the acquisition of Dragontail Systems, an Australian provider of kitchen order management and delivery technology, for USD 68.9 million (AUD 93.5 million).
  • In 2021, ​​​Hungry Jack's introduced Australia's largest fried chicken burger, claiming it to be the 'crunchiest and juiciest' available. The fast-food chain has introduced three new burgers, each of which is 40% larger than its closest competitor and has a 'thick' fried whole-breast chicken fillet in a buttery brioche bun in a variety of flavors.

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 Quick-service Restaurants

      3. 5.1.3 Street Stalls/Kiosks

      4. 5.1.4 Cafes/Bars

      5. 5.1.5 100% Home Delivery Restaurant

    2. 5.2 By Structure

      1. 5.2.1 Chained Outlets

      2. 5.2.2 Independent Outlets

  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 Jack's Pty Ltd

      4. 6.4.4 Domino's Pizza Inc.

      5. 6.4.5 Inspire Brands Inc.

      6. 6.4.6 Starbucks Corp.

      7. 6.4.7 Bucking Bull

      8. 6.4.8 Nando's

      9. 6.4.9 Doctor’s Associates

      10. 6.4.10 Craveable Brands

    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 - 2027.

The Australia Foodservice Market is growing at a CAGR of 5.16% over the next 5 years.

McDonald’s Corporation, Yum! Brands Inc, Domino's Pizza Enterprises Limited, Hungry Jack's Pvt Ltd, Starbucks are the major companies operating in Australia Foodservice Market.

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