As a nation, we spent 2% more YOY on QSRs in the last week, at an average of $26.33. This time last year, Perth residents were spending below the average, at $24.45, 6% less than the October 2015 national average of $25.80. Latest October 2016 data has the WA capital spending $30.08 - that’s 14% higher than this year’s national average.
So what has contributed to this growth in the Perth market? Choosing a QSR that is health and taste-focused have remained stable, however we have seen a rise in the price choice restaurants, from 38% to 45% YOY (an 18% increase). Even though they are searching for value, consumers are prepared to spend more on QSRs in a week. This aligns with the fact that the average personal income of a Perth resident has grown 3% YOY, the national average remaining steady. This motivation to choose based on price is not due to lack of income but consumers desire to spend more wisely.
As their primary restaurant choice, 204,000 Perth residents are choosing McDonalds, as their primary restaurant choice, that’s a 36% increase YOY. The highest growth we have seen in QSRs primarily used is with Grilld, increasing their primary customer base 117% in Perth YOY.
In the last four weeks, 490,000 Perth residents report to have been to a McDonalds restaurant for any given reason, 30% more than the same time last year. Dominos has also increased in individual patronage, with 242,000 having eaten the pizza chain’s food in the last four weeks – a 26% increase YOY.
When we examine the attitudes of Perth residents to their food, it is apparent people feel more strongly about where they eat and the meals they choose.
In terms of the most significant shifts that can be seen, 61% of people now agree that they like to experiment with new taste sensations and cuisines, 16% growth YOY. Additionally, 39% of Perth residents now say that food is one of their passions in life, an increase of 10%. What has become of lesser importance to the Perth resident is a preference for using the best quality ingredients, with a decrease of 5%. The sentiment that the priority when choosing food is flavour and taste is now held by 79% of the Perth population – a 3% increase YOY.
Perth’s consumer consumption of non-alcoholic beverages has increased by 22%, with the belief that bottled water is better for you than tap water (16% up from 13%). According to the figures, 55% say they prefer to buy drinks that are low in sugar or are sugar-free – a 12% increase YOY. Consumption of Coke Zero is up 25% YOY and Pepsi Max up 5%.
And when it comes to the media Perth customers prefer, 28% of people find the website of the restaurant the most helpful. This has remained constant YOY. Meanwhile, 57% still favour advice from their family and friends. Finally, television has seen the most growth for this audience, with 19% finding it most useful (an increase of 18% YOY).
Over the last year Perth has seen an increase in QSR spend per week of 131% (estimated $23 million a week up to $30 million). There has been an increase in consumer visitation during off-peak times, with Perth consumer’s now more likely than the rest of Australians to purchase menu items mid-morning (9am-11:30am, 56% YOY) and late night (8pm-5am, 17% YOY). The savvy marketer could use these key periods, offering promotions that appeal to the price-seeking Perth consumer demand.
Source: emma data October 2016, n=64,570
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