QSR Media Conference 2014: Trends, Developments & Opportunities in the QSR Chain Market
"In the last two decades, Australians have made eating out a way of life," said Sissel Rosengren, Head of Foodservice at BIS Shrapnel.
Eating out is no longer a treat but is a lifestyle for most Australians.
In her presentation, she noted that the total Australian Foodservice market is valued at 45 billion (at consumer prices), emphasizing it is a vibrant and sophisticated market. The Australian's propensity to eat out has increased in the last decade. Australians are now spending 33.2 cents in the dollar, from 12 cents in the dollar in 1960.
Despite the Economic downturn, there is still the underlying propensity to eat out.
As per latest data, the total Foodservice outlet numbers this year is 81,280. 12% of that figure accounts for QSR chains, making it a signifcant part of the Australian Foodservice market.
From 2005 to 2014, overall compound growth rates for QSR Fast Food chain is 5.4%, for Independent Fast Food is 0.3%, and for Snack Food chain is 10.5%. As the numbers reflect, there has been an exponential growth for Snack Food Chains, they do however only account for 23% of total QSR Chains. Also noting that major chains still account for 80% of chain outlets.
In the last quarter of 2013, research has shown that 23 million meals have been served in 2013, with 1 in 3 meals being served by QSR chains. A lower number compared to 2012, where 24 million meals were served. Rosengren explained that this decreased number reflects of the challenges being currently faced by QSR chains.
This year, she forecasts a 2.5% growth in the QSR Chain market and a 3% growth by 2015. "This is a sluggish growth, as in the last 5 years we have seen a decline in the market."
CHALLENGES
"Looking at the market, looking ahead, during the economic downturn, there is no doubt in terms of the winners during this period are the QSR chains, clubs and lower end restaurant market (local Chinese, Italian, Australian)," said Rosengren.
However, growth is starting to plateau. The lower end restaurant market and middle market, on the other hand, is going strong.
OPPORTUNITIES
There is an underlying drive towards healthier eating among consumers. Rosengren noted that there is opportunity in healthy eating, older age groups, cafe culture, and snack food offerings.
She emphasized that during economic downturns, menu and product innovation is paramount.
