Post on 30-Aug-2020
THE AUSTRALIAN FOODSERVICE MARKET
FUTURE IN FOODSERVICESEPTEMBER 11, 2017
AUSTRALIAN FOOD INDUSTRY
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CONSUMER MARKETS
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$115Billion
RETAIL FOODSERVICE
+
$172 Billion
$57Billion
ECONOMIC CONTRIBUTION
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THE FOODSERVICE DOLLAR
In the last two decades Australians have made eating out a way of life. Nearly two thirds of the
population over the age of fourteen eat out
at least once a month.
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THE FOODSERVICE DOLLAR
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EATING OUT A WAY OF LIFE FOR AUSTRALIANS IN CITIES AND IN COUNTRY TOWNS
AUSTRALIANS EAT OUT FOR BREAKFAST, BRUNCH, LUNCH & DINNER
EVEN DURING UNCERTAIN ECONOMIC TIMES…AUSTRALIANS TRADE DOWN IN CHOICE OF OUTLET
AUSTRALIAN FOODSERVICE MARKET
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UNIQUE
AUSTRALIAN FOODSERVICE MARKET
Plethora of Cuisines
Fastest Changing
Food Market
A Market of Independent
Outlets
Huge Variety of Eating Out
Options
Continual Growth
DYNAMIC VIBRANT DIVERSIFIED EVOLVINGUNIQUE
Plethora of Cuisines
DYNAMIC VIBRANT DIVERSIFIED EVOLVING
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OUR NATIONAL FOOD PALATE IS BOLD AND OPEN
NO REAL NATIONAL CUISINE
CUISINE
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1. NEW SOUTH WALES • Sydney centric…diverse & dynamic• Many other large urban areas & cities, wine districts, holiday destinations
2. VICTORIA • Melbourne still the coffee capital of Australia• Tourism critical to regional Victoria and its foodservice market• More of a Southern European dining scene in Melbourne…the
Greeks & Italians
SIX FOODSERVICE REGIONS
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3. QUEENSLAND • Brisbane has developed into a sophisticated dining out market in the past
decade• Regional Queensland still a steak & seafood society
4. WESTERN AUSTRALIA • Perth…an isolated ‘island’• Supply problems linger• The institutional sector ahead of the game• A huge tourist region
SIX FOODSERVICE REGIONS
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5. SOUTH AUSTRALIA • Significant supplier of fresh produce• Still largely reigned by English & German food traditions• Adelaide is not a strong tourist destination in itself
6. NORTHERN TERRITORY • Closer to Asia than the rest of Australia• All about casual dining• Problem of availability and continuity of supply
SIX FOODSERVICE REGIONS
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COMMERCIAL OUTLETS 2017
63,099OUTLETS
9%
2%
1%20%
33%
7%
26%2%
COMMERCIAL SECTOR %
SHARE OF TOTAL OUTLETS 76ANNUAL GROWTH RATE
2016 - 17 3.45
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INSTITUTIONAL OUTLETS 2017
19,540 OUTLETS
10%
2%
1%19%
36%
7%
23%2%
INSTITUTIONAL SECTOR %
SHARE OF TOTAL OUTLETS 24ANNUAL GROWTH RATE
2016 - 17 5
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COMMERCIAL OUTLETS
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INSTITUTIONAL OUTLETS
FOODSERVICE MARKET SIZE
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Title TOTAL MARKET SIZE BY VOLUMEUnits KilosDetail Broken down by product sub-category
Title COMMERCIAL MARKET SIZE BY VOLUMEUnits KilosDetail Broken down by category and commercial channel
Title INSTITUTIONAL MARKET SIZE BY VOLUMEUnits KilosDetail Broken down by category and institutional channel
Title TOTAL MARKET VALUEUnits Wholesale Price in AUD Detail Broken down by product sub-category
Title COMMERCIAL MARKET VALUEUnits Wholesale Price in AUD Detail Broken down by category and commerical channel
Title INSTITUTIONAL MARKET VALUEUnits Wholesale Price in AUD Detail Broken down by category and institutional channel
7 COMMERCIAL MARKET VALUE
8 INSTITUTIONAL MARKET VALUE
4COMMERCIAL MARKET SIZE BY
VOLUME
5INSTITUTIONAL MARKET SIZE BY
VOLUME
6 $19 Billlion
3 2.9 Billion
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MAIN GENERAL DISTRIBUTORS
$7.2 Billion
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AUSTRALIANS TRADING DOWN TO MORE CASUAL EATING OUT EXPERIENCES
CHEFS’ OPERATING ENVIRONMENT
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CHEFS ARE DRIVEN BY…
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the lack of skilled staff both front &
back-of-house
rising food costs
rising utility costs
strongcompetition
CHEFS ARE IMPACTED BY…
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Fine Dining Only 2-3% of
Australia’s total number of restaurants
All foodstuffs made from scratch
Working with sophisticated latest equipment
Passion for the ultimate fresh produce
FULL SERVICE RESTAURANTS
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Upper Middle/Middle/Casual
– replacing fine dining/growing
Pressure to differentiate themselves from competitors – signature dishes
Demanding customers requesting menu changes
FULL SERVICE RESTAURANTS
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Lower End Suburban & Regional –Plateaued but
still vibrant
Less pressure to vary menus – most of the time making their standard fare
Chef often the owner – carries the financial burden
FULL SERVICE RESTAURANTS
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CAFÉS
Not usually a trained chef
Less foodstuffs made-from-scratch
Many menu items made in advance
Coffee no longer the product to rely on
CAFÉS
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PUBS & TAVERNS
Pubs steadily grown in popularity over the past three years – the ‘in’ channel
Many pubs have become gastro pubs
PUBS & TAVERNS
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HOTELS
Functions – private & business - greater importance than the dining room
Great focus on the breakfast meal segment –little on dinner in comparison
HOTELS
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INSTITUTIONAL KITCHENS
Budgetary constraints much greater than in the commercial sector
Majority of back-of-house staff are cooks & kitchen hands
Bulk food offering in most institutions – large food quantities & simpler menus
INSTITUTIONAL KITCHENS
FOODSERVICE EQUIPMENT
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$5 Billion
FOODSERVICE EQUIPMENT
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1.4 million units
installed
LIQUOR IN FOODSERVICE
Red Wine White Wine Beer
211 million 184 million 225 million
Total Number of Glasses per Year
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LAST TWO YEARS…
3
4
2
1
5
34% DECLINE IN NUMBER OF ESPRESSO COFFEES CONSUMED
TEMPORARY DECLINE IN FOOD & NON ALCOHOLIC BEVERAGES
PLATEAUING IN QSR CHAIN VOLUME
SHARP DECLINE IN FOODSERVICE EQUIPMENT INSTALLED BASE
WINNERS: CAFÉS - PUBS/TAVERNS - INDEPENDENT QSRs
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CAFÉ & PUB DINING
3
4
2
HEALTHY EATING STILL ON THE RISE
BREAKFAST & BRUNCH
PARTLY & FULLY PREPARED FOODSTUFFS
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OPPORTUNITIES – IN A GROWING MARKET
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NEW & INNOVATIVE PRODUCTS
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THE RISE & RISE OF THE HAMBURGER
GLUTEN FREE STEADY GROWTH FROM LOW BASE
HOSPITALS & NURSING HOMES
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OPPORTUNITIES – IN A GROWING MARKET
9 HIGHER SUPPLIER MARGINS WITHIN FOODSERVICE
LOOKING TO THE FUTURE
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AUSTRALIA
NEW ZEALAND