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 - Industry Key Buyers Chapter
The industry has a low level of market share concentration, with no company holding over 5.0% of the market. The industry is highly fragmented and traditionally encompasses a large number of single-establishment owner-operated cafes. This fragmentation is not expected to change much over the next five years. Consumers are expected to drive the trend towards smaller operators and niche providers, continuing to choose independent cafes and coffee shops over chain stores.
While independent operators dominate the market, there are some franchised coffee shop or cafe operators in the industry. The most prominent chains include the Coffee Club, Gloria Jean's Coffees and Michel's Patisserie... purchase to read more