Industry Analysis & Industry Trends
The Cafes and Coffee Shops industry owes much of its success to Australia's love for quality coffee. With the influx of European immigrants after World War II and the emergence of popular European-style cafes, a strong and vibrant coffee culture has developed across the nation. This love for coffee supported industry demand through the global economic downturn and has fuelled growth over the past five years. This upward trend is expected to continue over the next five years.
Australia's coffee culture and the prevalence 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 Investment Chapter
The Cafe and Coffee Shops industry exhibits a low level of capital intensity. Operators spend an estimated $0.06 on capital investment for every dollar paid as wages. Cafe and coffee shop operators require significant labour input in all areas from coffee and food service, to cooking and cleaning. Most positions are relatively unskilled, with some training required for roles such as coffee making. Many cafes and coffee shops lease both their premises and much of their equipment to lower the initial capital outlay. This significantly lowers capital intensity and decreases start-up costs for new entrants.
The level of capital intensity can differ between players, depending on the scale of the business... purchase to read more