Published on 14/01/2016 by Punchmedia

Fresh and Fast: It's How We Like Our Food

It seems fresh, fast and even straight off the street is how we like to purchase our food these days. The growing street food craze continues to gain popularity across the country along with the desire for healthy quick meal options. Vietnamese street food takeaway company Rolld, which offers traditional rice paper rolls with various fillings has grown 800 per cent in the last three the years and has set its sights on international expansion. Initially opening in Melbourne's Goldsbrough Lane, the company aimed at targeting time poor professionals in need of a quick and healthy lunch option. Growing demand has seen Rolld expand to 36 stores across Australia with an estimated combined turnover of $40 million a year. Since the global financial crisis, takeaway restaurants have been the stars of the retail sector - recent ABS statistics revealing that cafes, restaurants and takeaway food services turnover increased 1 per cent to $3.4 billion in November.

Looking Closer at the Sandwich Shop Industry

The industry has sustained strong growth over the past five years, due in large part to consumers’ increasing awareness of the benefit of healthy eating. Busier lifestyles have also supported demand for quick meal options. Industry revenue is forecast to increase by an annualised 4.5% in the five years through 2015-16, to reach $1.7 billion.

Industry Structure

The industry is dominated by Subway, which accounts for a considerable portion of industry establishments and represents an estimated 84.3% of industry revenue. Subway has expanded its store network over the past five years, to include more than 1400 stores. Subway benefits from its favourable brand reputation, supply chain network and economies of scale that enable it to provide sandwich meal options at a low price point.

Health Movement

Rising health consciousness has been a boon for the industry, as it has supported strong demand for fresh and healthy sandwiches over the past five years. Obesity is becoming more widespread in the community, with more people now aware of the increased risks associated with a sedentary lifestyle and poor diet. The increasing awareness of health risks has turned consumers away from meal options that are high in fat, salt and sugar.

Time Poor Consumers

Busier lifestyles and long working hours have supported demand for quick meal options such as sandwiches. As consumers seek more leisure time, they have traded home-cooked meals for takeaway and ready-made meals. Major player Subway maintains a great portion of its store network in CBDs, as a means to cater to time-pressed working professionals and students. Subway maintains a multitude of stores in populous areas with high foot traffic, so as to offer added convenience and provide healthy fast food with a quick turnaround.  

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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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