Industry Analysis & Industry Trends
The Cafes and Coffee Shops industry owes its success to the nation's love for quality gourmet coffee and the extent to which this is entrenched in the daily routine of many Australian consumers. The arrival of European immigrants after World War II and the emergence of popular European-style cafes in the 1950s crafted a strong and vibrant coffee culture that has endured to the present day. This unique aspect of the Australian market supported demand for the industry during the recent global economic downturn.
Australia's coffee culture combined with the prevalence of small speciality cafe and coffee shop operators has resulted in a high level of competition, low barriers to entry and low industry concentration... purchase to read more
Industry Report - Industry Investment Chapter
Australia's Cafe and Coffee Shops industry has a medium level of capital intensity. For every dollar spent on capital expenditure, $6.67 is spent on wages. Like all hospitality industries, cafes and restaurants are labour intensive. They require a significant input of labour in all areas from food ordering and preparation, cooking, the taking of orders, serving and cleaning in all areas from the kitchen hands, chefs, waiters and bar-staff. Some of these activities require significant training, while others are relatively unskilled occupations. Many cafes and restaurants lease both their premises and much of the equipment to lower the initial capital outlay... purchase to read more