Australia Quick Service Restaurant Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Quick Service Restaurant Market Trends

Australia quick service restaurant market excels in speed, delivering meals in minutes to accommodate busy lifestyles. They offer diverse cuisines, appealing to various tastes and dietary needs. Affordable pricing makes dining out more accessible, and the wide range of locations along with drive-thru options boosts convenience for consumers. Domino's Pizza Enterprises Ltd is the largest pizza chain in Australia, leading in both the number of stores and sales. QSRs enable customers to customise their pizzas with different toppings and sizes, improving the overall dining experience and contributing to the Australia quick service restaurant market revenue.

The growth of the quick service restaurant market is driven by rising demand for convenient meals, a diverse menu that includes healthier options, and technological advancements like online ordering and self-service kiosks. Additionally, the franchise model has spurred expansion, resulting in more QSR locations in urban and rural areas. The Australian Taxation Office reports that an average sales cost exceeding $600,000 contributed to a 37% increase in the pizza foodservice market in 2021-22, further propelling growth in Australia’s quick-service restaurant sector, as pizzas can be prepared and served quickly for customers seeking fast meals.

Australia Quick Service Restaurant Market Growth

The Australia quick service restaurant market is thriving as QSRs maintain consistent quality through standardized preparation, which builds customer trust and loyalty. They also introduce seasonal menus to appeal to adventurous diners. Additionally, many participate in community initiatives, enhancing their brand image while offering healthier choices for health-conscious consumers. Subway, the American sandwich franchise, has the highest number of locations among popular QSR brands in Australia, focusing on fresh ingredients and healthier menu choices that attract those seeking nutritious meals.

QSRs boost brand loyalty and visibility by engaging with the community and supporting local initiatives. Their strong marketing strategies, which include social media promotions and loyalty programs, successfully attract customers. Partnerships with delivery platforms enhance convenience, while a commitment to sustainability resonates with environmentally conscious consumers, positively impacting brand reputation and increasing the Australia quick service restaurant industry revenue. In April 2024, Australia’s largest Mexican QSR chain, Zambrero, appointed Today the Brave as their full-service creative partner to help accelerate global growth and support their extensive network of over 200 Australian restaurants.

Australia Quick Service Restaurant Market Insights

• Food retailing increased by 0.2% (USD 30.2 million) in July, seasonally adjusted, with other specialised food retailing rising by 1.3% (USD 13.3 million), according to the ABS.
• Industry reports indicate that total revenue for the fast food and takeaway services sector surpassed 23 billion Australian dollars in 2023, reflecting a $2.4 billion increase from the previous year.
• The eight fastest-growing brands, including KFC, Hungry Jack's, Pizza Hut, Zambrero, Guzman y Gomez, and Grill'd, opened 184 new locations across Australia.

Industry News

January 2024

Domino's introduced two new pizzas for their summer menu, collaborating with lamb expert Sam Kekovich and Meat & Livestock Australia. This premium range featured Australian lamb, including the Greek lamb tzatziki and lamb meat lovers pizzas, along with Greek lamb tzatziki meltzz, slow-cooked lamb pasta, and cheese ‘n’ mite scrolls.

February 2024

Pizza Hut teamed up with Nutella to launch a new dessert available for delivery via their website or app. The collaboration introduced the Loaded Cookie with Nutella, a giant 8-in-1 vanilla cookie, freshly baked and served warm with a drizzle of delicious hazelnut spread on top.

Australia Quick Service Restaurant Market Drivers

Health-Conscious Offerings

The Australia quick service restaurant market is increasingly focusing on health-conscious options as consumers prioritize nutrition. Many chains are expanding their menus to include fresh, organic, and plant-based items. This shift reflects a growing awareness of dietary choices, with customers seeking meals that are not only convenient but also beneficial for their health. QSRs are responding by incorporating salads, whole grains, and low-calorie alternatives, making it easier for consumers to choose healthier options when dining out and supporting the quick service restaurant demand. In June 2024, Gami Chicken launched its first grilled chicken range as part of the brand’s strategy to offer healthier options. The company introduced three new grilled chicken menu items to complement its existing offerings. This menu update aimed to provide healthier choices following a 172% sales increase from June to December 2023, which Gami Chicken attributed to the success of its healthier individual menu items.

Technology Integration

The Australia quick service restaurant market is thriving due to technological advancements, with many establishments implementing mobile ordering apps, self-service kiosks, and contactless payment systems to improve customer convenience. The Australia quick service restaurant market dynamics and trends are being influenced by innovations that streamline the ordering process, reduce wait times, and enhance the overall customer experience. Furthermore, data analytics are employed to grasp consumer preferences, enabling QSRs to tailor their offerings and refine marketing strategies. In September 2024, KFC Australia adopted a careful approach to AI in drive-thrus by implementing voice AI to assist staff with order management. This technology allows employees to concentrate on food preparation and customer interactions, ensuring accurate orders and facilitating real-time modifications.

Opportunities in the Australia Quick Service Restaurant Market

Delivery and Takeaway Services

The Australia quick service restaurant market is experiencing growth due to the rise of delivery and takeaway services. As more consumers prefer dining at home, many QSRs have partnered with food delivery platforms to broaden their reach. This trend has led restaurants to optimize their menus for delivery, ensuring food quality and packaging are appropriate for transport. As convenience remains a top priority, QSRs offering reliable delivery options are poised for success, boosting demand in the Australia quick service restaurant market. In February 2024, McDonald’s introduced its delivery service in Australia as a component of its digital expansion, enabling customers to order directly through the MyMacca’s app with the new McDelivery feature. This service allows customers to conveniently place their orders via the app.

Market Restraints

The Australia quick service restaurant market is hindered by labour shortages, affecting service quality and growth potential. Rising food costs pressure profit margins, prompting operators to increase prices or reduce quality. Additionally, stringent health and safety regulations impose costly compliance burdens, limiting operational flexibility and escalating expenses for restaurant operators.

The Australia quick service restaurant market opportunities are defined by intense competition among established brands and newcomers, resulting in price wars and thinner profit margins. Additionally, changing consumer preferences for healthier, sustainable options present challenges for traditional QSRs, requiring significant investment to adapt and potentially affecting customer loyalty.

Australia Quick Service Restaurant Industry Segmentation

“Australia Quick Service Restaurant Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service Type

• Dine-In
• Takeaway
• Delivery

Market Breakup by Product Type

• Burger and Sandwiches
• Pizzas and Pastas
• Drinks and Desserts
• Chicken and Seafood
• Others

Market Breakup by Cuisine Type

• American
• Chinese
• Italian
• Mexican
• Others

Market Breakup by Restaurant Type

• Chained Outlet
• Independent Outlet

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Quick Service Restaurant Market Share

By Product Type Analysis

The Australia quick service restaurant market is growing, with pizzas and pasta providing a diverse array of toppings and sauces. This variety caters to different dietary needs, including vegetarian and gluten-free choices. This versatility attracts a broad customer base, driving trends in the Australia quick service restaurant market. Customisation boosts satisfaction, and their shareable nature promotes group dining, increasing order sizes. Quick preparation aligns with the demand for fast service, while affordable meal deals cater to budget-conscious diners. In January 2023, San Remo launched its Active Plus pasta, enriched with triple the fibre and essential vitamins, providing a nutritious and convenient option for health-focused consumers.

The Australia quick service restaurant market is fueled by drinks and desserts, which boost average transaction values as customers frequently add them to their meals. These offerings enhance the overall dining experience and encourage repeat visits. Additionally, seasonal promotions create excitement, while healthier options attract health-conscious diners, contributing to the Australia quick service restaurant industry growth. Unique menu items help brands differentiate themselves, fostering customer loyalty. In March 2024, Pizza Hut announced a collaboration with Nickelodeon to launch several themed menu items based on the cherished SpongeBob SquarePants series, including a ‘world-first’ ice cream flavour.

By Cuisine Type Analysis

The Australia quick service restaurant market growth is largely driven by American cuisine, which remains popular for its familiar and comforting items like burgers and fries. The wide variety of menu items caters to different tastes, while well-known brands attract consumers seeking trusted dining options. Customisation options enhance customer satisfaction, and value meal deals appeal to budget-conscious diners, boosting sales and profitability. In February 2024, Popeyes, the U.S. fast-food chain, announced plans to expand into Australia, seeking financial support from local investors to bring its renowned chicken franchise to the region.

The Australian quick service restaurant market is seeing increased demand for Mexican cuisine, noted for its bold flavours and a diverse menu that caters to a range of dietary preferences. The ability to customize dishes, along with shareable options and healthier choices, enhances overall customer satisfaction. Additionally, the increasing interest in global cuisines further boosts its popularity and market presence. In September 2024, Hungry Jack's introduced its limited-time Mexican Whopper and Mexican Jack’s Fried Chicken burgers, featuring flavorful ingredients that highlight the brand's commitment to exciting new offerings.

Australia Quick Service Restaurant Market Regional Insights

The Australia quick service restaurant market has experienced notable growth, fueled by changing consumer preferences and the demand for convenience. New South Wales (NSW) leads in QSR outlets and sales, particularly in Sydney, followed by Victoria (VIC) with Melbourne as a dining hub. Queensland (QLD) is emerging, especially in tourist hotspots like the Gold Coast, while Western Australia (WA) and South Australia (SA) are smaller but growing markets. Tasmania (TAS) and Northern Territory (NT) present further opportunities for new entrants.

As per the most recent filings with ASIC by McDonald's Australia, the company's sales for 2023 increased by 7 percent to USD 2.144 billion, encompassing revenue from its company-owned restaurants and rental income. Total system-wide sales reached approximately USD 7 billion, including both company-owned and franchised restaurant sales, contributing significantly to the growth of the Australian quick service restaurant industry.

Competitive Landscape

Australia quick service restaurant market key players focus on innovative menu development and improving customer experience through high-quality offerings. These companies prioritize sustainability and responsible sourcing, adapting to consumer preferences while preserving strong brand identities. With a substantial presence in various countries, RBI continues to expand its portfolio and influence industry trends.

Key Industry Players

Starbucks Corp.: Established in 1971 and headquartered in Seattle, Washington, Starbucks is a globally recognized coffeehouse chain known for its speciality coffee and inviting café ambience. The company has expanded internationally, offering diverse beverages and food items while focusing on ethical sourcing and community involvement through various initiatives.

Subway IP LLC: Founded in 1965 and based in Milford, Connecticut, Subway is a well-known sandwich franchise that specializes in customizable subs and salads. The brand prioritizes fresh ingredients and healthy choices, appealing to a broad customer base with thousands of locations worldwide, ensuring a strong global presence.

Yum Brands Inc.: Established in 1997 and headquartered in Louisville, Kentucky, is a multinational fast-food corporation that operates popular chains like Taco Bell, KFC, and Pizza Hut. The company focuses on menu innovation and diversification while adapting to regional preferences, leveraging its extensive global reach to meet consumer needs.

McDonald's Corporation: Headquartered in Chicago, Illinois, was established in 1940 and is a global leader in the fast-food industry, renowned for its hamburgers, fries, and breakfast offerings. With thousands of locations worldwide, the company emphasizes quality, affordability, and innovation, alongside a strong commitment to sustainability and community engagement to enhance the overall customer experience.

Other key players in the Australia quick service restaurant market report include Restaurant Brands International Inc., Domino's Pizza Inc., Red Rooster Foods Pty Ltd., Guzman y Gomez, Corp., and Zambrero Pty Ltd. among others.

Recent Developments

February 2024

Cotti Coffee opened its first takeaway-only store in Sydney, introducing Australian consumers to Chinese coffee shop culture. In addition to a standard espresso menu, Cotti offered various flavoured beverages popular in China, such as Rice Milk and Pampas Blue lattes, coconut-infused coffee, and Grapefruit Sparkling Cold Brew.

March 2024

Domino’s launched its new Cheese Volcano pizza in Australia, featuring cob-loaf-inspired fresh dough topped with molten cheese, starting at $10 for pickup. Customers could also order the Cheese Volcano Dipping Box with Crispy Chips or add garlic bread. Besides this, they released Triple Cheese Bites for $7 pickup, filled with Mozzarella, Cheddar, and Parmesan.