Industry Analysis & Industry Trends
The Cafes and Coffee Shops industry has grown strongly over the past five years, owing much of its success to Australia's love of quality coffee and vibrant coffee culture. Industry revenue is expected to grow by an annualised 7.4% over the five years through 2015-16, boosted by a large spike in 2013-14 caused by rising consumer sentiment and growing incomes. This includes a forecast revenue increase of 8.4% in 2015-16, to total $5.3 billion. Despite this, competitive pressures have pushed profitability down slightly over the past five years.
Australia's coffee culture, and the growing number of small speciality cafes and coffee shops have resulted in a high level of competition, low barriers to entry and low industry concentration... purchase to read more
Industry Report - Industry Locations Chapter
The geographic spread of the industry is closely correlated with population and income distribution. Consequently, a significant proportion of cafes and coffee shops are located in the heavily populated eastern seaboard states, where there is higher foot traffic. New South Wales, Victoria and Queensland account for 81.2% of industry establishments, and over 77% of the population. New South Wales and Victoria are home to a larger share of cafes and coffee shops than their population base would indicate. This is largely due to higher average incomes in these states, and greater demand for cafe meals and beverages. Furthermore, Melbourne's entrenched coffee culture has given rise to many new cafes and coffee shops opening in inner city areas... purchase to read more