Chain Restaurants in Australia Industry Market Research Report Now Available from IBISWorld
Consumer dining preferences are increasingly shifting towards premium and fine dining experiences, which is reducing demand for industry restaurants. For this reason, industry research firm IBISWorld has added a report on the Chain Restaurants in Australia to its growing industry report collection.
Melbourne, Australia (PRWEB) March 21, 2014
The Chain Restaurants industry operates on a specialised business model that represents a hybrid between traditional restaurants and fast-food services. The concept has proven relatively successful in Australia with industry revenue forecast to grow at an annualised 3.4% over the five years through 2013-14 to reach $384.9 million. This solid growth has been supported by rising levels of discretionary income combined with improving consumer sentiment and increased expenditure on recreation and culture. In 2013-14, industry revenue is forecast to increase by a strong 8.6% on the back of new restaurant openings and growth in revenue per establishment. Characteristic of the hybrid model, chain restaurants tend to fall between fast-food services and traditional restaurants in terms of price. Most of the chains have originated in Australia with international chains having only limited success. The industry is characterised by a medium level of market share concentration and faces a high level of external completion from fast-food services, restaurants and cafes. The Chain Restaurants industry has entered a mature stage of its economic life cycle with the number of enterprises expected to decline over the five years through 2018-19. The main point of differentiation for chain restaurants is the style of food, and the options for new entrants are becoming increasingly scarce.
The outlook for the industry is not so bright with demand expected to flatten over the next five years. IBISWorld industry analyst Andrei Ivanov states “the weaker performance will be partially attributed to changing consumer preferences as people start to focus on more premium dining experiences.” More food-savvy diners are likely to look at menus and peer-review sites rather than rely on the reputation of a certain chains, which will lead to industry players needing to differentiate themselves with their menus and build strong reputations.
The Chain Restaurants industry has a moderate level of market share concentration, which is largely due to the small number of restaurant chains nationally. According to Ivanov, “there are fewer chain restaurant establishments than fast-food outlets, since fast-food outlets operate using a low-cost model that focuses on the economies of scale afforded by a franchise network.” Conversely, chain restaurants typically operate in the medium price range in between quick-service establishments and fine-dining restaurants. The broader Restaurant industry is characterised by a large number of single owner-operated restaurants, which provide robust external competition and has contributed to the low number of chain restaurants. Chain restaurants also compete with cafes and coffee shops. Major industry players include Hog’s Breath Café, La Porchetta, Fasta Pasta and Taco Bill. For more information, visit IBISWorld’s Chain Restaurants report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry comprises sit-down restaurants that provide table services. Companies in this industry consist of three or more locations. The report covers the following business types: licensed restaurants, BYO restaurants, licensed and BYO restaurants and unlicensed restaurants.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/03/prweb11687437.htm