Shifting social trends have significantly influenced the Restaurants industry's performance over recent years. Consumers' busy lifestyles and high workloads have bolstered demand for restaurant meals and takeaway. Restaurants allow consumers to combine dining with leisure and avoid spending time on food preparation. Rising demand for food delivery platforms like Uber Eats has also supported industry revenue, allowing time-poor consumers to purchase home-delivered, restaurant-quality food. A fall in discretionary incomes and recent cost-of-living pressures have restricted patronage for restaurants, as consumers have become more concerned about the costs of dining out. Industry businesses are also finding it extremely difficult to deal with elevated operational costs, including high input, wage and energy expenses. Labour shortages have also been extreme in the industry, with restaurants facing major retention gaps. These factors, along with intense competitive pressures, have curbed the industry’s profitability growth and forced businesses to exit the industry over the two years through 2024-25. Nonetheless, the total number of enterprises in the industry has increased over the past five years as dynamic consumer preferences have created several niches for restaurants to cater to. Overall, industry revenue is anticipated to have soared at an annualised 6.6% over the five years through 2024-25 to $24.1 billion. This includes an expected 2.2% dip in 2024-25. Looking ahead, improving consumer confidence and expanding discretionary incomes are set to support industry revenue. Reeling from the economic challenges of the previous five-year period, restaurants are anticipated to diversify their revenue streams by expanding their service offerings to include merchandise and live events. Restaurants are forecast to focus on improving operational efficiencies to limit costs and boost profitability. There will also be a focus on sustainability efforts as Australian consumers become more discerning about their environmental choices. Overall, industry revenue is projected to climb an annualised 1.0% over the five years through 2029-30 to total $25.5 billion.

The Australia Foodservice Market report segments the industry into Foodservice Type (Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants), Outlet (Chained Outlets, Independent Outlets), and Location (Leisure, Lodging, Retail, Standalone, Travel). Get five years of historical data alongside five-year market forecasts.

In 2024, the annual revenue of cafés, restaurants, and takeaway food services in Australia amounted to just shy of 65.5 billion Australian dollars, marking a new record within the given period. Between 2005 and 2019, the revenue of cafés, restaurants, and takeaway food services in the country had been growing year-on-year until 2020, which was the first year during this period to show significant negative growth. Food service landscape in Australia The number of cafés and restaurants operating in Australia has increased in recent years, reaching over 55,000 in the year ended June 2024. As Australia’s most populous states, the majority of these establishments are based in New South Wales and Victoria. While dining out remains prevalent, takeaway food services have risen in popularity among the country’s consumers, with internationally renowned delivery services like Uber Eats and Menulog taking the most online food delivery bookings in 2024. Australia’s coffee culture Australians are coffee aficionados, whether it be homebrew, a coffee to-go, or a coffee catch-up at their favorite café. Around three-quarters of Australian adults enjoy at least one cup of coffee a day, and almost one in two Australian households owns a coffee machine. Many countries have their own take on how to make the popular caffeinated beverage, and the flat white is a popular type of coffee with its origins Down Under. While Australia and New Zealand have not yet managed to settle the dispute on where the beverage originates, the flat white remains a staple on café menus across the country and is gaining traction in metropolitan cities around the world.

In 2024, the annual revenue of cafés, restaurants, and catering services in New South Wales, Australia amounted to over 13.1 billion Australian dollars. This was the highest annual revenue reported across all states and territories in Australia. In comparison, the Northern Territory had the lowest annual revenue of cafés, restaurants, and catering services across the country's states and territories that year, at around 330 million Australian dollars.

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Australia Foodservice Market Size 2025-2029

The Australia foodservice market size is forecast to increase by USD 35.92 billion at a CAGR of 12.3% between 2024 and 2029.

The Foodservice Market is experiencing significant growth driven by changing consumer lifestyles and the increasing demand for convenient food solutions. With more individuals leading busy lives, the need for quick and easy meal options has increased, leading to the expansion of the foodservice industry. Another key trend shaping the market is the rising preference for gluten-free fast foods. This demand is being fueled by an increasing number of people diagnosed with celiac disease or gluten intolerance, as well as those following gluten-free diets for health reasons. However, the market faces challenges as well. Regulatory hurdles impact adoption due to stringent food safety regulations and the need for compliance.
Supply chain inconsistencies also temper growth potential, as maintaining a steady supply of raw materials and ingredients is crucial for businesses to meet customer demand. Companies seeking to capitalize on market opportunities must focus on innovation, ensuring they offer a diverse range of convenient and health-conscious food options, while also addressing the challenges of regulatory compliance and supply chain management effectively. By doing so, they can position themselves as industry leaders and meet the evolving needs of their customers.

What will be the size of the Australia Foodservice Market during the forecast period?

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In the dynamic foodservice market, local sourcing and supply chain transparency are gaining traction, enabling restaurants to offer fresher, more sustainable menu items. Subscription services and personalized dining experiences are also on the rise, with food tech startups leveraging technology to deliver customized recommendations based on food allergies, intolerances, and nutritional preferences. Employee engagement is a key focus for corporate catering, with brands building loyalty through personalized menus and nutrition information. Smart kitchens are revolutionizing foodservice operations through automation and kitchen technology, including voice ordering, kitchen automation, and biometric authentication. Food waste recycling and sustainable food practices are essential for businesses seeking to reduce their environmental footprint and enhance their customer experience.
Food sourcing and traceability are critical components of brand building, with blockchain technology providing a secure and transparent solution. Augmented reality (AR) and virtual reality (VR) are transforming event planning and menu customization, offering experiences for customers. Mobile payments and food delivery drones streamline the ordering and delivery process, ensuring customer retention and convenience. Personalized recommendations and sustainable practices are shaping the future of foodservice, with food tech startups at the forefront of innovation. Corporate catering and brand building require a focus on employee engagement and nutrition information, while smart kitchens and food traceability offer operational efficiencies and transparency.
The foodservice market is constantly evolving, with technology playing a pivotal role in enhancing the customer experience and driving growth.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Modality

  Conventional
  Centralized
  Ready-prepared
  Assembly-serve


Sector

  Commercial
  Non-commercial


Type

  Fast foodservice
  Cafes and bars
  Restaurants
  Delivery and takeaway
  Others


Geography

  APAC

    Australia

By Modality Insights

The conventional segment is estimated to witness significant growth during the forecast period.

The foodservice market encompasses various segments, with the conventional system being the most prevalent. In this system, ingredients are prepared and served on the same premises, ensuring freshness and customization for customers. Food is maintained at appropriate temperatures before serving and may be quickly heated prior. This system is commonly utilized in schools, universities, restaurants, and cafeterias, with the food being distributed to dining areas or lunch counters. Digital marketing plays a significant role in foodservice businesses, enabling targeted campaigns and brand loyalty programs. Food labeling, a crucial aspect of food safety and regulation compliance, is streamlined through digital technologies.

Restaurant chains leverage digital menu boards for real-time menu engineering and pricing strategies. Food trucks and cloud kitchens offer alternative business models, focusing on delivery services and

Market Size statistics on the Restaurants industry in Australia

As of November 2024, the cafés, restaurants, and takeaway services sector had the largest number of employees across the accommodation and food services industry in Australia, employing around 697,500 people. This equated to around 73.2 percent of the accommodation and food services industry workforce.

Consumers’ growing awareness of fast food’s nutritional content and shift towards healthier eating habits have challenged demand for fast food and takeaway food services. In response, fast food brands have expanded their menus to include more nutritious, premium options with reduced fat, sugar and salt. Major companies have adapted to this trend, with McDonald's expanding its premium burger range and KFC focusing on fresh, locally sourced ingredients. The number of chicken-based fast food, which is considered healthier than traditional fast food, is also increasing. The recent cost-of-living crisis has had a mixed impact on the industry as consumers ‘trade down.’ Although people are refraining from overspending on eating out, they’re preferring to spend on fast food meals instead of paying for full meals at restaurants. Industry revenue is expected to have grown at an annualised 2.6% over the five years through 2024-25 to $29.6 billion. This trend includes an anticipated 2.9% jump in 2024-25. Consumers’ surging reliance on online delivery platforms during the pandemic boosted industry revenue but also pressured profitability, since online delivery platforms charge commissions per order. Rising food inflation has led businesses to increase menu prices to offset higher purchasing costs, with most major franchises able to pass on costs downstream to consumers, which has driven profitability growth over the five years through 2024-25. Shifting consumer preferences and evolving business models will drive industry growth over the coming years. Companies will increasingly focus on offering plant-based alternatives, reshaping their menus, with major brands set to expand their vegetarian and vegan options to capture rising demand for sustainable, health-conscious meals. Refranchising will also improve industrywide profitability, as fast food giants will reduce their operational costs by shifting company-owned stores to franchisees. This model allows brands to focus on marketing and innovation while franchisees manage day-to-day operations. These strategies, alongside international expansion, will boost competition and industry growth. Revenue is forecast to rise at an annualised 4.3% over the five years through 2029-30 to reach $36.6 billion.

The industry comprises restaurants (independent, chain and franchised) that serve Japanese food to patrons. These establishments may also offer alcoholic and other beverages with the food. The industry excludes shops that primarily offer takeaway food services.

This statistic illustrates the share of fast food establishments in Australia as of August 2016, by state. During the survey period, fast food outlets made up around 42.9 percent of the dining establishments located in the Northern Territory.

Operators in this industry are primarily engaged in providing fine dining services to patrons who order and are served while seated and pay after eating. These establishments may provide this type of food service to patrons in combination with selling alc

Australia Retail Sales: Trend: Cafes, Restaurants and Takeaway Food Services data was reported at 5,587.000 AUD mn in Feb 2025. This records an increase from the previous number of 5,569.300 AUD mn for Jan 2025. Australia Retail Sales: Trend: Cafes, Restaurants and Takeaway Food Services data is updated monthly, averaging 1,515.500 AUD mn from Apr 1982 (Median) to Feb 2025, with 487 observations. The data reached an all-time high of 5,587.000 AUD mn in Feb 2025 and a record low of 345.400 AUD mn in Jul 1982. Australia Retail Sales: Trend: Cafes, Restaurants and Takeaway Food Services data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.H001: Retail Sales: ANZSIC 2006: by Industry.

Forecast: Tourism Output of Restaurant Industry in Australia 2024 - 2028 Discover more data with ReportLinker!

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Australia Cafe Market Size 2025-2029

The Australia cafe market size is forecast to increase by USD 383.8 million, at a CAGR of 3.7% between 2024 and 2029.

The cafe market is experiencing significant growth, with an increasing number of establishments catering to the rising demand for convenient and affordable dining options. The market is experiencing significant growth, driven by the rising trend of home brewing and the increasing preference for local coffee shops. A notable trend in this market is the growing preference for healthier food choices, particularly gluten-free options, as consumers become more health-conscious. However, this market faces stiff competition from home-cooked meals and the proliferation of food delivery services. To capitalize on the growing demand for gluten-free food, cafes can differentiate themselves by offering a wide variety of options and ensuring that their menus are clearly labeled. Additionally, partnerships with local suppliers for fresh, organic ingredients can help cafes stand out in a crowded market.
In terms of challenges, the intense competition from various sources necessitates effective pricing strategies and a focus on providing unique offerings to attract and retain customers. Furthermore, adhering to food safety regulations and maintaining high-quality food and service standards are crucial for maintaining customer loyalty and trust. In summary, the cafe market is witnessing robust growth, driven by increasing consumer demand for convenient and healthier food options. To succeed in this competitive landscape, cafes must differentiate themselves through unique offerings, effective pricing strategies, and a focus on food safety and quality.

What will be the size of the Australia Cafe Market during the forecast period?

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In the dynamic cafe market, ethical sourcing and sustainability are increasingly important trends. Coffee roasters and cafes prioritize transparency in their supply chains, ensuring fair labor practices and environmentally friendly farming methods. Alternative milk options continue to gain popularity, with plant-based and dairy-free choices expanding. Coffee cocktails and infused desserts add unique twists to traditional offerings. Customer data analysis through point-of-sale systems and cafe analytics helps businesses tailor their menus and services to meet customer preferences. Coffee competitions and workshops foster a community of coffee enthusiasts, driving innovation and education. Coffee technology solutions, such as digital menu boards and automated coffee systems, enhance the customer experience. The health and wellness trend is also influencing the market, with ready-to-drink (RTD) coffee and home brewing gaining popularity.
Coffee traceability and certification ensure the authenticity and quality of beans. Coffee roasting equipment and new coffee varieties cater to the evolving tastes of consumers. Cafe seating capacity and safety regulations are crucial considerations for business growth. Coffee waste management and hygiene standards maintain a clean and eco-friendly environment. Loyalty programs and quality control ensure repeat customers and consistent product offerings. Nitro cold brew and coffee vending machines offer convenience and variety, while coffee subscription services provide a steady supply of fresh beans. Coffee sustainability and supply chain efficiency are key focuses for businesses aiming to stay competitive.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Beverages
  Food


Service

  Dine-in
  Takeaway


Type

  Independent cafes
  Specialty coffee shops
  Convenience cafes
  Coffeehouse chains


Geography

  APAC

    Australia

By Product Insights

The beverages segment is estimated to witness significant growth during the forecast period. In the dynamic world of cafes, a focus on specialty coffee and exceptional customer experience reigns supreme. Third wave coffee shops, with their emphasis on high-quality beans, meticulous brewing methods, and artisanal latte art, have gained significant traction. This shift is evident in the growing popularity of single-origin coffee and the increasing demand for organic and fair trade beans. The cafe landscape is dotted with various players, from independent establishments to chain cafes, all vying for a piece of the market. Cafe management systems have evolved to accommodate online ordering and mobile applications, enhancing convenience for customers. Espresso machines and coffee makers are essential tools, while coffee accessories, filters, and beans are constant requirements.

Coffee festivals and events showcase the latest trends and inn

The Australian food service industry, a dynamic and competitive landscape, is poised for continued growth throughout the forecast period (2025-2033). While precise figures for market size and CAGR aren't provided, industry analysis suggests a robust market driven by several key factors. The increasing urbanisation and a young, diverse population with evolving culinary preferences fuel demand for diverse food offerings. The rise of online food ordering and delivery platforms, alongside the expansion of cloud kitchens, significantly contributes to market expansion. Further growth is fueled by the thriving tourism sector, with restaurants and cafes catering to both domestic and international visitors. However, challenges exist, including rising operating costs (labour, ingredients, and rent) and intense competition from both established chains and independent eateries. The industry is segmented by food service type (cafes, bars, QSRs, FSRs, cloud kitchens), outlet type (chained vs. independent), and location (leisure, lodging, retail, standalone, travel). This segmentation reflects the diverse nature of the Australian food service market and provides opportunities for specialized players to thrive. Understanding these segment-specific trends is crucial for strategic decision-making. For instance, the quick-service restaurant (QSR) segment, particularly pizza and burger chains, enjoys significant popularity, while the fine-dining full-service restaurant (FSR) segment caters to a more discerning clientele. The ongoing trend of health-conscious eating is influencing menu innovation across all segments, with increased demand for vegetarian, vegan, and organic options. The competitive landscape includes both international giants like McDonald's and Starbucks, and successful local brands. This creates a mixture of established market dominance and innovative entrepreneurial ventures. The industry’s success depends on adapting to evolving consumer preferences, managing operational costs effectively, and leveraging technological advancements. Data suggests a steady growth trajectory for the foreseeable future, although the exact rate will depend on macroeconomic factors and consumer spending habits. Strategic partnerships, innovative marketing strategies, and a strong focus on customer experience are likely to be critical success factors for companies operating within this dynamic market. Specific growth rates for different segments will be influenced by factors such as consumer trends, government regulations, and the overall economic climate. Recent developments include: April 2023: Subway added the latest item in its subs range, the Bizarre Creme Egg Sandwich, a combination of chocolate creme egg stuffed in Italian bread.January 2023: Zambrero announced its partnership with Cronulla Sharks and SurfAid for 2023.December 2022: KFC Australia teamed up with drone service provider, Wing, to pilot a delivery service of hot and fresh menu items in Australia to provide more convenience to customers.. Notable trends are: The number if restaurant visits per month grew as a result of the national spread of fast food companies..

Forecast: Tourism Gross Value Added of Restaurant Industry in Australia 2024 - 2028 Discover more data with ReportLinker!

Operators in this industry sell Indian food through take-out, delivery and sit-down dining.

This statistic illustrates the number of dining establishments in Australia in 2016, by establishment type. According to the source, there were around 29.43 thousand fast food outlets in Australia as of June 2016.

Australia Employment: Manufacturing: Food Product data was reported at 187.357 Person th in Feb 2025. This records a decrease from the previous number of 207.291 Person th for Nov 2024. Australia Employment: Manufacturing: Food Product data is updated quarterly, averaging 181.205 Person th from Nov 1984 (Median) to Feb 2025, with 162 observations. The data reached an all-time high of 231.217 Person th in Feb 2020 and a record low of 151.113 Person th in Aug 1988. Australia Employment: Manufacturing: Food Product data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.G023: Employment: by Sex and by Industry.

Australia Retail Sales: New South Wales: Cafes, Restaurants and Takeaway Food Services: Takeaway Food Retailing data was reported at 593.000 AUD mn in Mar 2025. This records an increase from the previous number of 530.200 AUD mn for Feb 2025. Australia Retail Sales: New South Wales: Cafes, Restaurants and Takeaway Food Services: Takeaway Food Retailing data is updated monthly, averaging 234.050 AUD mn from Apr 1982 (Median) to Mar 2025, with 516 observations. The data reached an all-time high of 669.600 AUD mn in Dec 2019 and a record low of 79.700 AUD mn in Jun 1983. Australia Retail Sales: New South Wales: Cafes, Restaurants and Takeaway Food Services: Takeaway Food Retailing data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.H014: Retail Sales: ANZSIC 2006: by Industry and State. [COVID-19-IMPACT]