The introduction of gourmet pizzas has kept the industry growing
Melbourne, Australia (PRWEB) November 14, 2012
The Pizza Restaurants industry in Australia has evolved significantly over the past five years, and will continue to change over the next five. While Australians will never tire of the old favourite - dough and toppings - their appetites and wallets have been put to the test. At a different price point, consumers have been tempted by and have shown a willingness to part with more for gourmet and healthier eating options. According to IBISWorld industry analyst Ee Jen Lee, “contrary to the nation's expanding waistlines, demand for low-calorie and fat-free options has been astounding”. Product innovation has been key to the Pizza Restaurants industry's growth. Over the five years through 2012-13, industry revenue is projected to grow at a compound annual rate of 2.1%. In 2012-13, industry revenue is forecast to increase by 2.8% to $3.35 billion.
The ease of convenience and changing menus have helped the Pizza Restaurants industry in Australia to recover strongly from the financial crisis that led consumers to trade down or substitute takeaway for cheaper alternatives. Technological developments have not only contributed to operational efficiency, but have also enabled a more personalised customer ordering experience. As society increasingly demands quick but delicious food options, pizza franchises have been able to capitalise on their expansive networks. “While pizza restaurants have been able to position themselves distinctively from a product offering and geographical location basis, overall stiffer competition has forced the largest players to engage in price competition”, adds Lee. This trend, together with increasing capital requirements, has encouraged franchise owners to consolidate their operations. Over the next five years, industry participants will continue to bank on their technology and systems to improve not only the customer experience, but also operational efficiency.
As Australian cities' boundaries expand, franchise owners are best positioned to tap into new markets because of increasing system requirements. In these new residential developments, there will be room for independent operators that can successfully differentiate themselves from the largest chains. In 2012-13, IBISWorld estimates market share concentration is low. Although there are well-established and well-known pizza brands in the industry, there is also a large number of small, independent and locally focused pizza restaurants across Australia. The three largest players are Domino’s Pizza Enterprises, EBA Pizza and Yum! Restaurants Australia. There is also a wide range of business structures in the industry as some operators derive the majority of their revenue through takeaway and home deliveries, while some specialise as restaurants serving pizzas on a menu with a number of other main course options.
For more information, visit IBISWorld’s Pizza Restaurants report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry prepare and serve pizza and other related items.
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
About IBISWorld Inc.
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.