Australia’s Food and Beverages service sector is expected to reach the value of AUD$80.8 billion at CAGR of 2.6% during the period 2016- 2021. Increasing disposable income in the economy of the urbanized area has made foodservice market an attractive proposition for new operators. Having not experienced a recession in over 25 years, consumer confidence is markedly robust, with consumers both able and willing to spend on non-essential food offerings.

Within the profit sector, quick service restaurants (QSR) was the largest channel with AUD$25.8bn value and 36.4% of sales in 2016, followed by full-service restaurants (FSR) with AUD$17.9bn value, ‘pubs, clubs and bars’ with AUD$13.5bn value and coffee and tea shops with AUD$3.3bn.

It is vital for QSR operators to remember that visits to the channel remain predominately driven by the convenience offered. Established brands should not risk dramatically changing their brand message and alienating their core audience in order to chase the latest food fads.

Australia’s strong economy has made foodservice market an attractive proposition for new operators. Having not experienced a recession in over 25 years, consumer confidence is markedly robust, with consumers both able and willing to spend on non-essential food offerings. This has placed pressure on traditional QSR operators, like McDonald’s and Hungry Jacks to, in turn, improve their food offerings. A consumer survey found that 13% of Australians share a picture of the food/drinks they eat/drink weekly.

These consumers, often young, are expected to ‘lead’ opinion shifts within their friendship groups, potentially benefiting the foodservice operators. Modern consumers are displaying more complex and personal desires when it comes to food. Their consciousness of health in food is higher and they seek greater control over what they choose to eat.