Growing appetite: The rise of foodie culture and demand for quality meals fuel industry growth

Changing social trends have driven solid revenue growth for the Restaurants industry over the past five years. Busier lifestyles and diminishing leisure time have increasingly led consumers to turn to restaurants for meals. Restaurants allow consumers to combine dining with leisure and avoid spending time on food preparation. As a result, industry revenue is expected to grow at an annualised 3.5% over the five years through 2017-18, to $20.1 billion. However, industry revenue is anticipated fall by 0.5% in the current year, due to limited consumer spending on industry services caused by falling discretionary incomes and negative consumer sentiment.Consumer demand for quality food and dining experiences has fuelled industry revenue growth over the past five more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Consumer demand for quality food and dining experiences has fuelled revenue growth
  • Changing consumer behaviour has driven many operators to restructure their restaurants
  • Consumers’ ongoing search for fashionable venues is expected to drive industry revenue growth
  • Industry Report - Industry Investment Chapter

    The Restaurants industry has low capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $11.79 is spent on wages. Restaurants require a significant input of labour across all operations, including food ordering and preparation, cooking, serving and cleaning. Some of these activities require training and experience, while other roles are relatively unskilled. Further, many restaurants lease equipment instead of investing in their own facilities. Leasing equipment can dramatically reduce capital intensity, as the initial outlay of equipment purchases represents the majority of industry capital investment.Capital intensity differs among industry segments, with premium restaurants investing more in initial setup than mid-range and low-cost players. Pre...purchase to read more.

    Additional Insights for the Restaurants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Restaurants Industry are

  • Access to niche markets
  • Effective cost controls
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Demand from fast food and takeaway food services and Health consciousness in the Restaurants industry impact industry performance..

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    What's in this report

    What is the Restaurants Industry?

    Industry firms mainly provide food and beverages for consumption on the premises. Customers generally order and are served while seated and pay after eating. The industry includes licensed, unlicensed and BYO restaurants. The industry excludes cafes and coffee shops, theatre restaurants, catering services and shops that primarily offer takeaway food services.

    Industry Products
  • Premium dining
  • Mid-range dining
  • Low-cost dining
  • Industry Activities
  • Restaurant operation
  • Bistro operation
  • Brasserie operation
  • Grill bar operation
  • Sushi and sashimi restaurant operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from fast food and takeaway food services
  • Health consciousness
  • Average weekly hours worked
  • Real household discretionary income
  • Consumer sentiment index

  • Current Performance
  • Consumer spending
  • Efficiency and profit
  • Lifestyle trends
  • Celebrity chefs
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Profit and employment
  • Opportunities
  • Table: Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Dairy Produce Wholesaling
  • Fish and Seafood Wholesaling
  • Fruit and Vegetable Wholesaling
  • Liquor Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Soft Drink and Pre-Packaged Food Wholesaling

  • Products & Services
  • Low-cost dining
  • Mid-range dining
  • Premium dining
  • Chart: Restaurants Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Restaurants

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Restaurants Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Restaurants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Restaurants Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A food preservation method that uses sophisticated technology to prepare, portion, cook and then chill food to 3°C. This method preserves food for up to four days before it is reheated for eating.
  • Food Handling
  • Close monitoring of food purchasing, preparation, storage and serving to ensure quality at each stage, from farm gate to plate.
  • Foodie
  • A person with a high level of interest in food, especially in eating or cooking.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Restaurants market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Restaurants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Restaurants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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