Industry Analysis & Industry Trends
The Cafes and Coffee Shops industry has grown over the past five years, owing much of its success to Australia's love for quality coffee and vibrant coffee culture. This love for coffee supported industry demand in the years following the global economic downturn and has fuelled revenue growth over the past five years. Industry revenue is expected to grow by an annualised 3.2% over the five years through 2014-15. This includes a forecast increase of 2.4% in 2014-15, to $4.3 billion. However, pressure on margins has 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 - Starting a New Business Chapter
Barriers to entry in the Cafes and Coffee Shops industry are low, as indicated by the high number of entries and exits. New operators can enter with relative ease, minimising establishment costs by leasing premises, equipment, furniture and fittings. Furthermore, many prominent coffee manufacturers also reduce start-up costs by supplying branded items such as windbreaks, umbrellas, signs, cups and plates and even staff uniforms. Entry to the industry is often available through franchising, with start-up costs covering outfitting and equipment, as well as training and computer systems for a cost.
There are no formal qualifications required to operate in the industry, although experience and training in the hospitality industry can be crucial in running a successful cafe... purchase to read more