Order up: New entrants at the premium end of the market have aided industry revenue growth

Rapidly changing consumer preferences and the entry of premium, gourmet burger shops have supported revenue growth for the Fast Food Burger Shops industry over the past five years. Despite the presence of industry heavyweights McDonald's and Hungry Jack's, these changes have prompted the industry to shift from traditional burger shops to niche establishments. Industry growth was further boosted by the partnership with food delivery services, such as Uber Eats. However, weaker household discretionary income growth and a trend towards healthier eating has constrained industry revenue growth. Industry revenue is expected to grow at an annualised 4.7% over the five years through 2018-19, including a 2.6% revenue increase in 2018-19, to total $7.6 billion...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 14-19
4.7%
Forecast Growth 19-24
Profit
Employment
64,989
Businesses
7,368

Industry Threats & Opportunities

  • Increased consumer demand for burgers and American cuisine has supported industry revenue growth
  • Growth of food delivery services has supported industry revenue performance
  • Fast food is anticipated to become increasingly popular as consumers lead busier lives
  • Industry Report - Starting a New Business Chapter

    The industry is characterised as having low barriers to entry. The industry's low capital intensity and slow technological change reflect its minimal start-up costs, given the low outlay for capital equipment relative to wages. The majority of investment is involved in store fit-outs and kitchen equipment. This can act as an incentive for smaller industry players, which can trial establishing fast-food burger shops particularly in areas with relatively less foot traffic. Nevertheless, new entrants may be deterred by the industry's mature life cycle and high level of competition among fast-food operators and the broader food services sector...purchase to read more.

    Additional Insights for the Fast Food Burger Shops Industry

    IBISWorld has determined the most important Key Success Factors for the Fast Food Burger Shops are:

  • Ability to franchise operations
  • Effective cost control
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Average weekly hours worked and Consumer sentiment index in the Fast Food Burger Shops industry impact industry performance..

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    What's in this report

    What is the Fast Food Burger Shops Industry?

    This industry includes establishments that are primarily engaged in selling burgers for on-premises and takeaway consumption.

    Industry Products
  • Breakfast items
  • Burgers
  • Sides
  • Drinks
  • Other products
  • Industry Activities
  • Burger retailing
  • Operating drive-through and takeaway facilities
  • Operating quick-service restaurants
  • Operating food vans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Average weekly hours worked
  • Consumer sentiment index
  • Health consciousness
  • Median age of the population
  • Real household discretionary income

  • Current Performance
  • Consumer trends
  • Trading landscape
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Future of fast food
  • Trading landscape
  • Food trends
  • Table: Fast Food Burger Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fast Food Burger Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Fruit and Vegetable Wholesaling
  • General Line Grocery Wholesaling
  • Liquor Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Soft Drink and Pre-Packaged Food Wholesaling

  • Products & Services
  • Burgers
  • Other products
  • Drinks
  • Sides
  • Breakfast items
  • Chart: Fast Food Burger Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 24 and under
  • Consumers aged 25 to 34
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers aged 55 and over
  • Chart: Major Market Segmentation for the Fast Food Burger Shops 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 Fast Food Burger Shops

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fast Food Burger Shops Industry

  • Industry Globalization
    McDonald's Australia Holdings Pty Limited, Competitive Foods Australia Pty Ltd, Grill'd Pty Ltd,
  • Table: McDonald's Australia Holdings Pty Limited - financial performance
  • Table: Competitive Foods Australia Pty Ltd - financial performance
  • Table: Grill'd Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fast Food Burger Shops 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 Fast Food Burger Shops Industry
    Includes:
  • 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
    Cheat Meal
  • A term popularised in bodybuilding circles, a cheat meal is typically an indulgent high-fat or high-sugar meal, temporarily deviating from one's diet plan.
  • Point Of Sale (Pos) Systems
  • Computerised systems used in retail sales to carry out customer transactions.
  • Wagyu
  • Premium meat characterised for its intense marbling and high unsaturated fat.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fast Food Burger Shops market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Fast Food Burger Shops:
    • 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 Fast Food Burger Shops 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 Fast Food Burger Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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