Changing consumer preferences towards gourmet and healthier pizzas have changed the industry's operating environment.
Melbourne, Australia (PRWEB) December 04, 2013
The Pizza Restaurants and Takeaway industry has evolved significantly over the past five years, and will continue to change over the next five. While pizzas will remain popular with Australians, consumer appetites and wallets have been increasingly put to the test. Regardless of the greater price points, consumers have enthusiastically embraced more gourmet and healthier eating options. Despite the nation's expanding waistline, demand for low-calorie and fat-free options has been astounding. IBISWorld industry analyst Ryan Lin states “product innovation has been key to the Pizza Restaurants and Takeaway industry's growth.” Over the five years through 2013-14, industry revenue is projected to grow at a compound annual rate of 3.2% to total $3.5 billion, including growth of 2.1% in 2013-14.
Convenience trends and changing menus have helped the industry to recover strongly from the financial crisis, which led consumers to trade down or substitute takeaway foods for cheaper alternatives. Technological developments have not only contributed to operational efficiency, but have also enabled more personalised customer ordering experiences. 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 basis, overall stiffer competition has forced the largest players to engage in price competition. This trend, together with increasing capital requirements, has encouraged franchise owners to consolidate their operations. According to Lin, “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 expand, system requirements will increase, and franchise owners will be best positioned to tap into these new markets. However, in these new residential developments, there will be room for independent operators that can successfully differentiate themselves from the largest chains.
The Pizza Restaurants and Takeaway industry is expected to have a low level of market share concentration. Although there are well-established and well-known pizza brands in the industry, there are also a large number of small, independent and locally focused pizza restaurants across Australia. A wide range of business structures exist across the industry, with some operators deriving the majority of their revenue through takeaway and home deliveries, while others operate as restaurants providing pizzas together with a variety of other main course menu options. The main competitive advantage that independent operators have over the franchise chains has comes with changing consumer preferences towards premium and organic products, as independent operators can adapt to evolving consumer tastes and preferences faster than the major chains can. The major industry players are Domino’s Pizza, EBA Pizza Holdings (Eagle Boys) and Yum! Restaurants Australia (Pizza Hut). For more information, visit IBISWorld’s Pizza Restaurants and Takeaway 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
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