May 01 2019
The Restaurants industry has recorded revenue growth over the past five years. Busier lifestyles and popular cooking shows have encouraged consumers to turn to restaurants for meals. Restaurants offer consumers a greater range of meal options and allow consumers to avoid spending time on food preparation. Industry revenue is expected to grow at an annualized 2.0% over the five years through 2018-19, to reach $18.8 billion.
The Restaurants industry has benefited from changing consumer lifestyle trends. Consumers have become increasingly busy, discouraging them from dedicating time to home cooking. Therefore, restaurants have become an appealing option for increasingly time-poor consumers. Restaurant dining has increasingly become a leisure experience for diners, with restaurant discovery websites such as Zomato driving the popularity of certain venues. This trend is anticipated to continue over the next few years.
Furthermore, rising immigration and the greater frequency of overseas travel has driven strong growth in the variety of dining options available in Australia. Consumers have been seeking better quality and variety from restaurants, which has fuelled demand for restaurants that serve international and exotic cuisines with unique dining experiences.
In addition, the success of popular cooking shows such as MasterChef has played an important role in developing a foodie culture in Australia. The rising prominence of these shows has allowed many celebrity chefs to promote their restaurants and the Restaurants industry in general. The growing popularity of foodie culture has boosted demand for high-end restaurants and new cuisines. Consumers have increasingly viewed eating out as a cultural experience.
However, restaurants are anticipated to face strong competition from related industries, such as the Fast Food and Takeaway Food Services industry. Food operators such as pubs and cafes, and supermarkets that offer prepared meals are also anticipated to compete with the Restaurants industry. To better compete, restaurant operators are likely to focus on becoming more efficient and improving the quality of their services. Overall, revenue for the Restaurants industry is forecast to rise at an annualized 0.8% over the five years through 2023-24, to reach $19.6 billion.