OVERVIEW OF INDUSTRY
The Australian and New Zealand Standard Industrial Classification (ANZSIC) code for Fast Food is Division H/Sub-division 45/ Class 4512.
The Fast Food market in Australia has experienced a vigorous growth over the last decade as Australians are making eating out a way of life. Once dominated by hamburgers, the Fast Food Industry has undergone a health kick over the five years through 2013-14 which has led to a 3.0% per annum rise in industry revenue to $15 billion. Twenty-five percent is spent on hamburgers, 19% on salads and sushi, 16% on pizza, 15% on sandwiches, rolls and wraps, 11% on chicken, 6% on desserts and confectionery and 5% on pies, sausage rolls and fish and chips. The mature life cycle stage for this industry is evident with industry value added growing at an average annual rate of 3.1% over the ten years through 2012-18 compared with average GDP growth of 2.9% per annum over the same period. 1 There is reported to be 24,600 Fast Food establishments across Australia, employing 214,265 people earning a total of $15 billion. Western Australia has 9% of the establishments, with New South Wales having the largest number (32.5%). 2
The Fast Food market has progressively changed over the years with the market being influenced by overseas trends as well as more uniquely developed Australian eating out preferences. The increased popularity of chain outlets at the expense of independent fast food operators seems to hold up while there are shifts in the popularity of various fast food alternatives. Easy to prepare meals have risen in popularity. Supplied by supermarkets, the rise in availability of pre-packaged meals has had a negative effect on the industry. Competitive pricing and convenience has increased the appeal of easy-to-prepare meals. IBIS World’s 2013 report on “Fast Food Services in Australia” shows that consumers aged 45 to 54 years make up the largest market for the fast food industry. This particular age group comprises 21.2% of the market, and is mostly households with working mothers. The 15 to 24 years group is the second major market, made up of young professionals, university and TAFE students. This group makes up for 20.0% of the market and is usually looking for value for money, mostly taking advantage of various promotions and deals offered by retailers. Consumers aged 35 to 44 years comprise 19.6%, followed by those aged 25 to 34 years accounting for 18.6% of the market. The smallest market in the industry is consumers in the higher age bracket such as those aged 55 to 64 years, making up 13.9%, while those aged 65 and over comprised 6.5%. 3
According to a report produced by Bis Schrapnel, across Australia there has been a steady growth in fast food outlets, making it a competitive market offering consumers a wide range of different fast food options. Although hamburgers regained some of its popularity and hot
RAPS Fast Food Industry Environmental Scan 2014
chips remain one of the most popular choices, the fast food market and consumer preferences are shifting towards new and emerging alternatives. Over the past years consumption of snack foods has also increased. 4
For the production and sale of domestic food products, businesses must adhere to the standards put in place by regulatory body Food Standards Australia and New Zealand (FSANZ). FSANZ's main responsibility is to develop and administer the ‘Australia New Zealand Food Standards Code’ (the Code), which lists requirements for foods such as additives, food safety, labeling and GM foods.
Australia is often compared with Canada, and there are very definite cultural and economic similarities between the two countries. The fast food trends in Canada are therefore of interest to Australia and in particular those involved in the commercial food service industry that supplies this sector. 5
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