Published on 08/07/2016 by Punchmedia

Foodie Culture Driving Restaurant Sales

Australia's love affair with good food has seen a sustained rise in restaurant industry profit over the past 5 years. Whether it be a restaurant for sale in Melbourne, restaurant for sale in Sydney, Brisbane or Perth, a new venture is being bought and sold consistently state to state as the country's appetite for top quality tucker continues to go from strength to strength. Industry revenue has grown by an annualised 6.2% over the past five years through 2015-16, including a projected 2.3% rise in 2015-16 alone, to total $13.1 billion.

Consumer spending

For most consumers, dining in restaurants is perceived as a luxury. As a result, industry revenue is influenced by changes in discretionary income and consumer sentiment. Consumers have been changing their dining behaviour, passing up premium restaurants in favour of cheaper mid-tier options. Consumers have also sacrificed higher margin items like entrees, desserts and beverages. Changing consumer behaviour has driven many operators to restructure their restaurants. Industry operators have been reviewing menus, reducing portion sizes and expanding takeaway menus in an attempt to support profit margins and avoid price rises.

Efficiency and Profit

Restaurant operators in Australia face high competition from within the industry and from operators in other industries, such as cafes and pubs. Price and quality are the primary areas of competition, and most restaurant reviews highlight these items. Consumers have a wide choice of restaurant options, which increases internal competition. Profit has grown over the past five years, largely due to stricter cost controls and falling wage costs. Restaurant operators have turned to new technologies and systems to maintain margins.

Lifestyle Trends

The industry has benefited from changing trends, including busier lives and higher workloads. Restaurants provide an appealing option for time-poor customers, with meal experiences that blend food and leisure together. Expenditure on restaurants has displayed long-term growth due to higher incomes enabling higher discretionary spending. Increased public awareness of the effects of poor diets has shifted demand towards healthier eating over the past five years. The Restaurants industry has been shaped by this trend, and healthier establishments have become more popular. Some operators have also changed their menus to introduce healthier options and remove unpopular unhealthy items.

Celebrity Chefs

The industry has benefited from a growing foodie culture. Consumers have increasingly viewed eating out as a cultural experience. Awareness of fashionable restaurants has been strong, as consumers keep up with new venues through review websites such as Zomato and Broadsheet. This increased popularity, and the rising prevalence of foodies, has played a significant role in driving demand for fashionable restaurants and new cuisines. This has also supported a trend towards higher quality gourmet food. The rising prominence of celebrity chefs has supported this trend, with consumers flocking to the establishments of prominent restaurateurs.  

punchmedia

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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