How can businesses survive in Australia’s complex food service landscape?
2020 saw food establishments worldwide closing their doors due to coronavirus-induced lockdowns. During that year, Australia’s cafés, restaurants, and takeaway services turnover reached a ten-year low, with turnover recovering since 2021. While this time was difficult for many businesses nationwide, it forced them to explore new avenues, including food delivery, curbside pickup, and drive-thru.With the industry back in full swing, the thousands of cafés and restaurants operating across Australia, most independent rather than chains, are faced with navigating a competitive landscape. Offering unique experiences in line with food trends and dietary requirements, excellent service with streamlined front-of-house automation, online booking systems, contactless ordering systems, digital payment facilities, and delivery options can be the difference between thriving or fizzling out. To attract more customers, many businesses are putting trending foods on the menu, including plant-based options, gluten-free, and functional foods. Meeting consumer expectations of hospitality venue sustainability practices such as using sustainably sourced, seasonal produce and donating unused food is also a primary focus for businesses.
Is Australian demand for fast food and takeaways growing?
Especially in urban centers full of busy commuters, quick-service restaurants (QSRs) have become a highly appealing option among consumers due to inexpensive meals served at a fast pace. As of January 2024, American chains Subway, McDonald’s, and KFC had the highest presence among quick service restaurant brands across Australia, with these three fast food giants also the leading QSRs on Australian meal delivery platforms. Local fast-food brands such as Red Rooster, Zambrero, Guzman y Gomez, and Grill’d also make their mark on the industry, with Guzman y Gomez reporting a sales revenue record in financial year 2023.Food delivery services expanded vastly across Australia during the pandemic, with delivery the primary way food establishments could stay afloat. Three main players have emerged in the Australian food delivery scene: Uber Eats, Menulog, and DoorDash. Deliveroo, formerly a significant delivery service within the industry, exited the Australian market in November 2022. Partnering with food delivery apps remains one of the key ways restauranteurs mitigate the impacts of rising operating costs and fluctuating guest spending patterns on the profitability of their restaurant, with several benefits of online food delivery identified by senior restaurant business decision-makers such as reaching more customers, driving sales, and gaining an edge over competitors.
