2019: Year in Review
We look back at the highs and lows of the Australian multi-site restaurant industry these past twelve months.
From new trends and concepts to growth chokes, QSR Media's Year in Review looks at the biggest and some of the most-read stories of 2019. Here is our summary of the most significant events and trends in the quick service and fast casual restaurant industry this year.
Towards multi-format growth
More restaurants have sought opportunities in various store formats in 2019. From drive-thrus to dark kitchens, brands are reaching out to more consumers without confining their potential to score revenues.
- Equity-backed Sushi Sushi to pursue wholesale and catering opportunities
- Shopping-centre native Sandwich Chefs partners with FTC to launch in service stations, drive-thrus
- Hungry Jack's responds to growing drive-thru market with barista coffee concept
- Chicken Treat makes Melbourne debut via Deliveroo Editions
Restaurant-supermarket hybrid
Taking the challenge for bringing convenience head on is the concept behind Coles’ first restaurant-supermarket hybrid. Sushi Sushi and EARL joined the new concept with flexible food items.
Getting in on grab-and-go
Further realising their potential in satisfying demand for convenience, chains like Subway and Oliver’s Real Food have launched grab-and-go ranges.
- Subway launches first grab-and-go menu in Brisbane
- Oliver's Real Food launches new grab & go range in its Wyong stores
Transitioning to QSR formats
Dining chains are also seeing potential to grow in the fast food segment by transitioning to a QSR format.
- Seagrass Boutique Hospitality CEO Bradley Michael: [Customers] wanted food that was changing on an ongoing basis, they wanted things quicker and they wanted to come with a big crowd and share the food.
- Motto Motto bridges the gap between Japanese fine dining and ramen shops
More plant-based, flexitarian ranges
Chains in various categories - even in dessert - are offering even more vegan items. Some brands have partnered with with alternative meat startups like v2food and US-based Beyond Meat, for the growing number of health-conscious, vegan and flexitarian consumers.
- Pizza Hut, Domino’s offer new vegan range
- Mad Mex aims for a larger flexitarian reach with new spicy winter fillings
- San Churro launches its latest batch of vegan desserts
- Hungry Jack’s launches plant-based ‘Rebel Whopper’ in partnership with v2food
Aggregators widen service options, a new player emerges
Delivery platforms have continued to widen their service options for customers and partner- restaurants. This year has also seen the debut of the US-based Doordash as a new player in the scene.
- Menulog ANZ managing director Alistair Venn: “As we continue to provide customers a greater range of choice, a key challenge is to maintain the ease and simplicity of online ordering, whilst demonstrating a wide range of options.”
- Deliveroo's ‘Pickup' service now available in Sydney and Melbourne
- KFC, Menulog extend delivery deal to 2022
- DoorDash officially launches in Sydney
New concepts
From utilising robots to introducing specialty concepts, chains underscored the need to transcend into the future of the industry. Moreover, foreign brands have come to shake up the scene.
- Inside Melbourne’s first robotic ice cream store
- Zarraffa’s Coffee founder on factory concept café Kiwanda
- Sandella's Flatbread comes to Australia
- Korean chicken chain Goobne makes Australia debut with Sydney flagship site
Underpayment cases hound industry
The ride of growth opportunities for the multi-site restaurant industry stops short for chains facing labour woes with the biggest allegation of wage theft amounting to $10 million.
- PappaRich franchisees penalised for underpaying workers
- Former Subway franchisee penalised for $65,000 for underpaying a Chinese staff.
- Chatime has responded to reports of alleged underpayment of staff amounting to $10 million.
- Domino's faces class action for allegedly underpaying staff
RFG’s turnaround strategy in progress
Amongst chains which have struggled in the year, Retail Food Group had to grapple with losses and measures to keep their business afloat. Recently, shareholders still see value with the company with their approval of the $170m capital raising plan.
Exploring overseas markets
Chains have continuously explored Asian markets for growth potential. The Coffee Club aimed to localise their offerings in Vietnam, whilst Mad Mex sought to capitalise on the growing healthy food demand in the Asian region.
- The Coffee Club makes Vietnam debut
- Mad Mex opens first Singapore restaurant, eyes first Malaysian outlet by December
Unique campaigns
QSRs sought to raise customer loyalty with their unique campaigns. McDonald’s introduced their limited-edition merchandise via delivery. For the love of chicken, KFC is offering wedding services to six couples until May 2020.
