Chain reaction: Industry revenue has declined due to strong external competition

The Chain Restaurants industry operates on a specialised business model that represents a hybrid between traditional restaurants and fast-food services. The concept has proven fairly successful in Australia. However, industry operators have struggled over the past five years due to fierce external competition. Industry revenue is expected to fall at an annualised 0.5% over the five years through 2018-19, to $327.3 million. Despite these struggles, increased expenditure on recreation and culture, which tends to boost visits to chain restaurants, has helped support industry demand. Industry revenue is anticipated to increase by 0.1% in the current year due to positive consumer sentiment, which will encourage households to dine out more more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry faces high external competition from fast-food services, restaurants and cafes
  • Competition from takeaway and fast-food services, and restaurants and cafes is expected to increase
  • Revenue growth will be low due to volatile consumer sentiment and changing consumer preferences
  • Industry Report - Industry Locations Chapter

    The share of each state's population influences the geographic spread of industry establishments. The eastern seaboard states of Victoria, New South Wales and Queensland account for the majority of industry establishments, largely due to their high relative population and population densities. Larger states are better equipped to support franchised chain restaurants, as they benefit from mass marketing and a larger population base. Some chain restaurants also tend to have a greater ratio of outlets in the states in which they originated. For example, La Porchetta has more than 85% of its outlets in Victoria, and Fasta Pasta maintains over two-thirds of its stores in South Australia. Thi...purchase to read more.

    Additional Insights for the Chain Restaurants Industry

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

  • Proximity to key markets
  • Ability to control stock on hand
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Chain Restaurants industry impact industry performance..

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    What's in this report

    What is the Chain Restaurants Industry?

    The industry comprises sit-down restaurants that provide table service. Industry firms consist of three or more locations. The industry includes licensed restaurants, BYO restaurants, licensed and BYO restaurants, and unlicensed restaurants.

    Industry Products
  • Steaks, burgers and general food
  • Italian food
  • Mexican food
  • Breakfast food
  • Asian food
  • Industry Activities
  • Chain restaurants specialising in steaks, burgers and general food
  • Chain restaurants specialising in Mexican cuisine
  • Chain restaurants specialising in Italian cuisine
  • Chain restaurants specialising in breakfast food
  • Chain restaurants specialising in Asian cuisine
  • Table of Contents

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

  • Current Performance
  • Consumer demand
  • Industry characteristics
  • The right market
  • Profitability and

    other trends

  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Changing consumer preferences
  • Profitability and

    other trends

  • Table: Chain Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chain 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

  • Products & Services
  • Steaks, burgers and general food
  • Italian food
  • Mexican food
  • Breakfast food
  • Asian food
  • Chart: Chain 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 Chain 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 Chain Restaurants

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chain Restaurants Industry

  • Industry Globalization
    Hog's Breath Cafe, Lovely Pancakes Pty Ltd, La Porchetta Holdings Pty Ltd, Taco Bill Mexican,
  • Table: Hog's Breath Cafe - financial performance
  • Table: Lovely Pancakes Pty Ltd - financial performance
  • Table: La Porchetta Holdings Pty Ltd - financial performance
  • Table: Taco Bill Mexican - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chain 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 Chain Restaurants Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food Standards Australia New Zealand
  • The agency responsible for developing and administering requirements for food safety and labelling in Australia and New Zealand.
  • Foodie
  • A person with a high level of interest in food, especially in eating or cooking.
  • Traditional Restaurant
  • A single restaurant that provides table service and is not part of a chain of restaurants.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chain 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 Chain 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 Chain 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 Chain Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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