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Fast Food Burger Shops in Australia Industry Market Research Report Now Available from IBISWorld

Melbourne, Australia (PRWEB) July 20, 2014

Rapidly changing consumer preferences and fierce competition from rival fast-food industries have restrained the performance of Fast Food Burger Shops in Australia over the past five years. Despite the presence of industry heavyweights McDonald's and Hungry Jack's, these pressures have led to a shift away from traditional burger shops. According to IBISWorld industry analyst Stephen Gargano, “As a weaker economic environment placed pressure on overall fast-food sales, a movement towards healthier eating slowed industry revenue growth even further.” Over the five years through 2014-15, industry revenue is forecast to grow by an annualised 1.2%. This forecast includes weaker performance in 2014-15, with revenue expected to decline by 0.1%, to total $4.1 billion. Increased competition has dramatically changed the trading landscape for industry operators. The wider fast-food industry has embraced a diverse range of cuisines, each competing for a larger share of consumer dollars.

As the range of available fast-food options has increased, traditional operators have felt the squeeze. Trends towards healthier eating and premiumisation have also shaped the industry over the past five years. “Consumers are increasingly demanding better quality products, regardless of the higher price point,” says Gargano. While this has suppressed revenue for typical fast-food burger shops, it has also provided some opportunities for growth. New entrants at the premium end of the market have provided some support for industry revenue, with these operators offering high-quality burgers made from premium ingredients. These trends are expected to continue over the next five years, with small independent operators and food vans becoming more popular. Despite growth at the premium end of the market, overall industry growth will remain weak over the next five years. Competition will also continue from other fast-food industries, with healthier operators such as Subway expected to benefit at the expense of traditional burger shops. Operators will need to understand changing consumer preferences and reflect these changes in updated menus if they wish to remain successful in the face of constrained industry revenue growth.

The Fast Food Burger Shops industry exhibits a high level of market share concentration, largely influenced by the dominance of major players McDonald's and Hungry Jack's. The extensive retail networks of two major players have contributed to their industry dominance, as stores are typically located in high-traffic locations and often operate extended hours. The major players have benefited from vast economies of scale in their supply chains, coupled with strong brand awareness and a focus on catering to price-conscious consumers. The move towards healthier menu options and away from traditional fast food has driven the entry of smaller players into the industry. The smaller niche players tend to differentiate their product offerings by providing healthier burger options and using more gourmet ingredients.

For more information, visit IBISWorld’s Fast Food Burger Shops report in Australia industry page.

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IBISWorld Industry Report Key Topics

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

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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