Australian Food Service Industry Statistics

• The market volume of Australia’s huge fast food industry is expected to increase at a compound annual growth rate of nearly 3.6% in the coming 5 years. The fast service restaurant sector controlled almost 60% of the market share.
• Australian’s are not prepared to give up their culture of eating out and because of the hard economic times some have opted to trade down from eating in restaurants to eating at fast-food outlets instead.  For every dollar spent on food and beverage, 44c is spent on fast food.
• With the down turn in the economy, many posh restaurants are struggling but the world’s biggest fast-food chain McDonald’s is reporting global sales increases. Their sales across Asia-Pacific including Australia’s 780 outlets rose 10.2% in 2009.
• It is expected that more than $37 billion will be spent in takeaway food in Australia this year, making Australia the 11^th biggest-spending fast-food nation in the world. This figure is an increase of $4 billion in just 3 years.
• Traffic to Australian fast-food outlets increased between 3 and 7% in 2010; more than the United States or Canada.
• There are now more than 1250 Subways, 845 Domino’s, 780 McDonald’s, 300 Hungry Jacks and 600 KFCs in Australia and New Zealand.
• In 2007 nearly 17,000 Australian fast-food outlets served approximately 1.64 billion fast-food or takeaway meals.
• According to the Australian Food Statistics report, in 2005-06 the value of Australia’s total farm and fisheries production increased by nearly 10% to be worth $34.8 billion and a strong export performance has been maintained.
• The food and beverage sector is Australia’s largest manufacturing industry and consistently accounts for more than 17% of Australian manufacturing sector employment.
• In 2005-06 Australia’s consumer expenditure continued to rise and total food and liquor retail spending increased by 6.1% to $97.4 billion.
• The major food and beverage industry sector had sales exceeding $70 billion in 2005-06.
• The dynamic food and beverage industry is driven by demanding diverse consumers from varying ethnic and cultural backgrounds which have influences from European, Asian and Middle Eastern origins.
• The food industry is a vital component in Australia’s economy and accounts for 46% of all retailing turnover. Total food and liquor spending rose to $106.6 billion in 2007-07, and 8% increase from the previous year.
• The food industry’s contribution to employment, business and service opportunities is significant. In 2006-07 about 191,400 people were employed in the food and beverage manufacturing sector.
• The 50 largest food and beverage corporations in Australia produce as much as ¾ of the domestic industry’s revenue.
• Australia Food and Grocery Council (AFGC) is the leading national organization representing Australia’s $102 billion food, drink and grocery manufacturing industry which employs more than 288,000 people.
• NSW accounts for 33% of the national industry and is Australia’s largest food processing State.
• NSW has about 2,000 food processing businesses, 40% of which are located in rural/regional areas and accounts for 25% of the country’s meat processing employment.
• The tourism and hospitality industry in Australia is increasing rapidly; it is an important growth industry and a major export earner.
• The tourism earnings for 2001 was $16.5 billion and represented 13% of Australia’s total export earnings and 64% of services.
• The tourism and hospitality industry employs about 1,200,000 people or up to 9% of the workforce.

Market analyst BIS Shrapnel‘s Fast Food In Australia 2009 Report revealed that over the past decade, the fast food market in Australia experienced vigorous growth as Australians made eating out a new ‘way of life’.

To put things in their statistical perspective, 1.64 billion meals and take aways were served by Australian fast food chains and independent outlets in 2007.

This accounted for 44 percent of all meals served in the commercial food service sector. There are now and estimated 17,000 fast food outlets throughout Australia representing 28 percent of the commercial food service outlets nationally.

One of the most stressful components of the business is that Australia is becoming one of the most expensive retail labour markets in the world – surpassing France, which does not bode well for profitability of fast food outlets going forward.

A counter-acting trend is that Australians are becoming more health conscious and aware and may be willing to pay a premium for better (safer) food alternative.

Australian food and hospitality industry events

• Fine Food Australia – leading food and hospitality event and largest international food and hospitality event.
• The Good Food & Wine Show, Melbourne – a professional agriculture trade show exhibiting the latest products and it is attended by wine retailers, wholesalers, importers, exporters, catering managers, bakers, confectioners, butchers, caterers, restaurant owners and the general public.
• Gluten Free Food & Allergy Show, Perth – a food and beverage show exhibiting newest products, technology and trends in the food industry. Focuses on allergies, food tolerances and allergy lifestyle information.
• Denman Wine and Food, NSW – showcases the leading wine and food producers of the district.
• Cape Jaffa Seafood & Wine Festival, South Australia – showcasing all seafood, local produce and wine.
• Lamb & Potato Festival, Guyra, NSW – Guyra’s famous lamb pies.
• Feast of the Senses, Innisfail, Queensland – showcasing the rare and exotic tropical produce from around Far North Queensland, including all local produce, vegetables, meat, seafood, herbs, spices and wines.