Australians, while taking a relaxed attitude to many things in life, have a strong appreciation of good food, in part stimulated by the immense variety of food in the country. Consumers are increasingly demanding simple food, especially comfort food while industry players are also seeking to differentiate through unique and special concepts, not just in the food they serve but in the ambience and service levels in their outlets.
According to a recently released state senate report, the entire franchise sector requires an immediate and drastic overhaul to stop many franchisees from being exploited. It recommended civil law penalties be included in the industry code along with greater enforcement power for the competition watchdog to help eradicate "exploitative behaviour" in the franchise sector.
As incomes have risen at a higher rate than food prices in recent years, local consumers are able to spend more on food and drink. This trend has been stimulated by demand for convenience, increasingly hectic work schedules and changing family lifestyles, with women increasingly entering the workplace.
There were significant changes to the competitive landscape in cafés/bars at the end of the review period. In addition to concerns over unscrupulous practices by franchisers and the deeply negative impact on franchisees and constant flux within the industry, with outlets opening and closing with alarming frequency, the Max Brenner café chain went into administration, citing rising costs and a sluggish retail sector.
Over the review period, consumer tastes continued to evolve with more people increasingly demanding healthier options. Gone are the days when consumers are satisfied with simpler food options.
The health and wellness trend continued to flourish in 2018 while Asian cuisine gathered momentum, exposing consumers to a variety of drink choices, including bubble tea. The robustly growing popularity of bubble tea has driven growth of chained juice/smoothie bars while a growing number of retail and street stalls/kiosks are also fuelling demand.
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Discover the latest market trends and uncover sources of future market growth for the Cafés/Bars industry in Australia with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Consumer Foodservice market research database.