Revenue rises with economic recovery and catering to consumer lifestyles.
Melbourne, Australia (PRWEB) November 02, 2012
The Restaurants industry in Australia has faced difficult trading conditions over the past five years. Declining household income during the global economic downturn, rising unemployment and low consumer sentiment caused demand for the industry to plummet. According to IBISWorld industry analyst Steven Connell, “consumers became vigilant in their spending by choosing to cook at home rather than eat out, and they sought value for money in food purchases”. This reduced the frequency of restaurant visits and lowered spending on high-margin menu items, thus prompting a fall in industry revenue over 2008-09. Overall, these factors have restricted growth over the past five years, with revenue expected to increase at a compound annual rate of 0.4%. After a solid year in 2011-12, the industry is forecast to record solid growth over 2012-13 as consumer demand for healthy, quality food and dining experiences offsets weaker economic conditions.
The Restaurant industry in Australia will be lifted by positive flow-on effects from the success of popular reality TV cooking shows that reconnect people with the joys associated with the total meal experience, incorporating the package of well-presented quality meals and the ambience associated with dining out. “There will also be opportunities rising from social trends such as busier lifestyles, which fuel demand for convenience”, Connell adds. Added to this will be opportunities associated with rising health consciousness driving consumers to factor health and nutrition into their spending habits and food purchases. Looking further ahead, industry growth should be supported by strengthening economic conditions. This is expected to fuel demand for the industry given people will be more able and willing to spend money on discretionary products such as restaurant meals for social outings, celebrations, convenience or leisure.
Moreover, rising health consciousness and ethical consumerism will present industry operators with ongoing opportunities to reach niche markets with premium products to increase profitability and revenue. However, this also means restaurateurs will face tough competition from other hospitality operators, such as takeaway food retailers, that are also trying to capitalise on these trends. As such, industry revenue is expected to increase over the five years through 2017-18. Australia's Restaurants industry has a low level of market share concentration. The industry is largely fragmented and traditionally encompasses a large number of single establishments as well as owner-operated restaurants. IBISWorld estimates that the industry's largest industry players account for a small portion of revenue as there are no major players, and this is not expected to change.
For more information, visit IBISWorld’s Restaurants report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes restaurants that serve food and beverages on the premises. The report covers the following business types: licensed restaurants, BYO restaurants, licensed and BYO restaurants, and unlicensed restaurants. This industry excludes takeaway food services, restaurant and catering services, theatre restaurants and the sale of alcohol for consumption on and off premises.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.