Innovation and new store formats in convenience stores, with a major focus on food, is expected to continue over the forecast period as busier lifestyles in Australia support the stronger demand for convenience. With a number of c-stores successfully launching new foodservice-orientated concept stores in 2016 and 2017 offering a broader range of food options to go as well as additional services, competition is anticipated as more operators follow the trend.
Franchising continued to be the preferred business growth model for local and international business in Australia. However, in 2017 the media exposed major cases of non-compliance within the franchising industry; franchisees were reportedly failing to comply with minimum wage rates, penalty rates, and pay-slip and record-keeping obligations.
The relevance of home delivery in Australia is expected to continue to increase due to the proliferation of online food ordering services, which have attracted the attention of both consumers and foodservice operators. Despite being late adopters of online ordering and delivery, consumer foodservice in Australia experienced significant value growth in online ordering over the review period.
McDonald’s remained the largest brand in fast food in Australia in 2017. The company continued to succeed with its premium offering, “Gourmet Creations”, by extending its availability to drive-thru stores as the range was previously limited to in-store consumption.
In August 2017, Caltex Australia announced its plan to move all franchise convenience stores to company operations by taking over franchises within two years. The company’s decision was the result of a two-year review of the operating model for its convenience retail business, which found that by moving to a company- operated model the company could better achieve its growth objectives, by offering a more consistent customer experience and standardised service, simplifying supply arrangements and rolling out new platforms.
Convenience stores and forecourt retailers continued to strengthen their position in fast food through concept stores and partnerships with food manufacturers or other foodservice operators. In 2017, fresh coffee, fruit, juices, salads and high-quality quick meals were commonly found in convenience stores, as well as modern seating areas with additional services such as Wi-Fi.
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This industry report originates from Passport, our Consumer Foodservice market research database.