Australia Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Australia Foodservice Market Analysis

The Australia Foodservice Market size is estimated at 67.34 billion USD in 2025, and is expected to reach 115.8 billion USD by 2030, growing at a CAGR of 11.44% during the forecast period (2025-2030).

The Australian foodservice industry is experiencing significant transformation driven by changing consumer preferences and technological integration. Consumer spending on dining out reached USD 160 per week in 2022, reflecting strong consumer confidence and disposable income levels. Digital transformation is reshaping the industry landscape, with major players like Coles Group and Yum! Brands investing heavily in digital advertising, spending USD 15.2 million and USD 14.9 million, respectively, on marketing strategies. The integration of digital ordering systems and mobile applications has become crucial for foodservice industry operators to maintain competitiveness and meet evolving consumer expectations.

The industry is witnessing a notable shift towards health-conscious dining options and sustainable practices. With 63.4% of adults considered overweight or obese, restaurants are increasingly incorporating healthier menu options, including vegan, low-sugar, and gluten-free alternatives. The rise of specialty coffee culture continues to influence the market, with 75% of the population consuming coffee daily in 2022, particularly among the 25-34 age demographic. This trend has led to the proliferation of specialty coffee shops and the introduction of premium coffee offerings across various foodservice establishments.

The delivery segment has emerged as a crucial revenue stream for foodservice in Australia operators, accounting for 30% of total restaurant sales in 2022. Over 5.5 million Australian consumers actively participate in online food ordering, driving the growth of digital platforms and cloud kitchens. This shift in consumer behavior has prompted traditional restaurants to adapt their operations to accommodate delivery services while maintaining quality and customer satisfaction. The industry has also witnessed significant infrastructure developments, such as the Gold Coast Airport's addition of 14 new retail and food and beverage outlets in 2023.

International expansion and market penetration continue to shape the competitive landscape. The entry of global chains, exemplified by Wendy's 2023 announcement to establish at least 100 outlets in Australia, demonstrates the market's attractiveness to international players. The industry is also benefiting from the revival of tourism, with over 2 million tourists visiting Australia in 2022, creating additional demand for diverse dining options. This international influence has contributed to the fusion of global cuisines with local preferences, resulting in innovative menu offerings and dining concepts across the country. This industry overview highlights the dynamic nature of the food industry in Australia, showcasing its adaptability and growth potential.

Australia Foodservice Market Trends

Increased demand for fast food drives expansion of quick service restaurants in Australia

• The total number of outlets increased by around 3,500 restaurants in 2022 compared to 2017. Owing to the high number of franchisee establishments, Australia had over 1,100 franchisors, 65,000 franchise units, and 8,000 company-owned units in 2022. The number of orders and consumer spending in the country also increased to USD 33 per month.
• Quick service accounted for more than 30,750 restaurants in 2022. The high demand for popular fast-food items like pizza, chicken nuggets/meatballs, burgers, and potato chips/fries increased fast-food consumption, increasing the number of orders per day to 174 in 2022, up by around 30 from 2017. Owing to this trend, Coles Group, Subway, and McDonald's, the largest food chains in Australia, have expanded their footprint in the country. For instance, as of 2022, Coles Group had the highest number of locations, with 1,545 locations across eight states and territories. In 2022, Subway had 1,214, McDonald's had 1,034, Domino's had 716, and KFC had 712 locations in Australia.
• Full service outlets hold the second major share in the market, with more than 23,899 restaurants in 2022. Full service restaurants provide more customer satisfaction by attracting customers with their menu options. The provision of a broad range of dishes by full service chains enhanced the value of the on-premise eating experience. The demand for popular dishes like avocado rolls, pad thai, spag bol, miso soup, rice, Indian curries, and other international food has recently increased. However, people prefer to dine out in restaurants with different music events, themes, and something unique.

Australians spend an average of USD 60 per week on fast food, with QSR accounting for the majority of sales value

• The average order value increased by 14.37% from 2017 to 2022, reaching USD 16.32 in 2022. Owing to the rising inflation rate, which increased by an average of 5-6% from 2017 to 2022, the number of orders per year increased from around 200,000 in 2017 to more than 425,501 per outlet in 2022. Owing to the high spending, Australians spend an average of USD 40 per week on food delivery through apps such as Uber Eats, Deliveroo, and DoorDash.
• QSR accounted for the major share of sales in 2022 with a low average order value. However, the average Australian spending was high, which amounted to USD 60 on fast food per week. Popular QSR dishes preferred by Australians are pizza (USD 10.63 per 300 g), chicken nuggets/meatballs (USD 6 per 300 g), burgers (USD 9.3 per 250 g), and potato fries/chips (USD 5.32 per 250 g). However, the average order value through cloud kitchens is higher than QSR as most people order lunch, dinner, and other meals, and the fuel prices are also high in the country.
• On average, Australians consumed around 2 kg of coffee per person in 2021. Three in four Australians (75%) consume at least one cup of coffee daily, and of those, 28% have three or more cups daily. However, popular servings at cafes & bars in 2022 included coffee (latte/cappuccino/Americano/espresso), which cost around USD 2.3 per 150 mL, hot chocolate (USD 3 per 150 mL), milk tea (USD 2.6 per 150 mL), juices (USD 5.3 per 300 mL), smoothies (USD 6.3 per 300 mL), wine (USD 52 per 400 mL), and craft/draught beer (USD 6.3 per 331 mL). These are consumed in high proportions in the country.

Segment Analysis: Foodservice Type

Quick Service Restaurants Segment in Australia Foodservice Market

Quick Service Restaurants (QSR) maintain their position as the dominant segment in the Australian foodservice industry, commanding approximately 39% market share in 2024. This leadership position is primarily driven by Australia's high meat consumption patterns, with the country being one of the world's top meat consumers at around 90 kg per capita annually. The segment's strength is further reinforced by the extensive presence of both international and domestic fast-food brands, including McDonald's, KFC, Domino's Pizza, and local favorites like Oporto and Red Rooster. The preference for quick, convenient dining options, particularly among the working population and younger demographics, continues to drive QSR growth, with consumers spending approximately USD 60 per week on fast food. The QSR market size reflects these fast food industry trends, highlighting the segment's robust expansion.

Cloud Kitchen Segment in Australia Foodservice Market

The Cloud Kitchen segment is experiencing remarkable growth in the Australian foodservice industry, projected to expand at an impressive rate of approximately 38% during 2024-2029. This explosive growth is primarily driven by the increasing adoption of smartphone applications for daily needs and the expansion of internet penetration nationwide. The segment's growth is particularly notable among millennials, who represent nearly half of all food delivery app users in Australia. With internet penetration reaching over 96% and about 21 million social media users, cloud kitchens are effectively leveraging digital platforms to reach their target consumer base. The segment's growth is further supported by Australia's entrepreneurial environment and the relatively low capital requirements for setting up cloud kitchen operations compared to traditional restaurants.

Remaining Segments in Foodservice Type

The remaining segments in the Australian foodservice market, namely Cafes & Bars and Full Service Restaurants, continue to play vital roles in shaping the industry landscape. The Cafes & Bars segment maintains its strong presence, particularly driven by Australia's sophisticated coffee culture and high per capita coffee consumption. The segment is characterized by both chain outlets like McCafe and independent specialty coffee shops that cater to the country's discerning coffee enthusiasts. The Full Service Restaurants segment offers a diverse range of cuisines, from Asian to European, meeting the growing demand for premium dining experiences and authentic international flavors. Both segments are adapting to changing consumer preferences by incorporating healthier menu options and enhanced dining experiences, aligning with the broader industry trend towards health-conscious dining.

Segment Analysis: Outlet

Independent Outlets Segment in Australian Foodservice Market

Independent outlets dominate the Australian foodservice market, commanding approximately 66% market share in 2024. This significant market position is primarily driven by the high consumption of specialty coffee and unique dining experiences offered by independent establishments. The segment's strength is particularly evident in cafes and bars, where domestic brands like Kaffeine, Lantana, and Ozone consistently outperform international chains. Australian consumers show a strong preference for specialty coffee, with approximately 40% of daily orders at coffee shop outlets being specialty beverages. The success of independent outlets is further reinforced by the country's sophisticated coffee culture, where Australians consume around 1.91 kg of coffee per person annually, translating to roughly 6 billion cups per year. Independent quick-service restaurants have also gained traction as consumer preferences shift from traditional fast-food options to cleaner, healthier alternatives, particularly in response to growing health consciousness among the population.

Chained Outlets Segment in Australian Foodservice Market

The chained outlets segment is projected to demonstrate robust growth in the Australian foodservice industry, with an expected growth rate of approximately 10% during 2024-2029. This growth trajectory is primarily fueled by the aggressive expansion plans of both international and domestic brands, supported by substantial investments in network expansion. Major international players like Wendy's are actively entering the Australian market, with plans to establish at least 100 outlets. The segment's growth is particularly notable in the quick-service restaurant category, where established chains like McDonald's, KFC, Domino's Pizza, Oporto, and Red Rooster maintain strong market positions. The expansion is further supported by Australia's high meat consumption patterns, with an annual per capita consumption of around 90 kg, making meat-based quick-service restaurants particularly successful in the market. Additionally, the growing trend of health-conscious dining has prompted many chains to diversify their menus with healthier options, attracting a broader customer base.

Segment Analysis: Location

Standalone Segment in Australia Foodservice Market

The standalone segment dominates the Australian foodservice industry, commanding approximately 77% market share in 2024, while also exhibiting the strongest growth trajectory. This segment's prominence is largely attributed to the strategic positioning of outlets in high-footfall locations and their ability to offer unique dining experiences. The prospective development of standalone restaurants is significantly influenced by real estate prices, with Australia ranking 14th among 190 economies in ease of doing business. Quick service restaurants within the standalone format have particularly thrived through multiple service models, including dine-in, takeaway, and drive-thru options. Major international chains like McDonald's, Subway, and domestic players continue to expand their standalone presence, with many introducing innovative concepts and menu offerings to cater to evolving consumer preferences.

Remaining Segments in Location

The Australian foodservice market's location segmentation also encompasses leisure, lodging, retail, and travel segments, each serving distinct consumer needs. The leisure segment caters to entertainment venues, sports facilities, and cultural spaces, benefiting from increasing consumer expenditure on recreational activities. The lodging segment has gained significant traction through the expansion of international and domestic hotel chains, offering diverse dining options to accommodate growing tourist numbers. The retail segment continues to evolve with the integration of food courts and restaurants in shopping centers and malls, while the travel segment serves transportation hubs, including airports, railway stations, and other transit locations, providing convenient dining solutions for travelers and commuters.