Restaurants in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: August 2024
ANZSIC H4511aRevenue
$21.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
175k
Businesses
27,421
Wages
$X.Xbn
Restaurants in Australia industry analysis
Shifting social trends have significantly influenced the Restaurants industry's performance over recent years. Consumers' busy lifestyles and high workloads have bolstered restaurant meal and takeaway demand. Restaurants allow consumers to combine dining with leisure and avoid spending time on food preparation. The COVID-19 pandemic severely affected industry operations, limiting restaurants to takeaway services during lockdown periods. However, easing restrictions over recent years have boosted demand for dining out, driving up revenue. Increasing demand for food delivery platforms like Uber Eats has also supported industry revenue, allowing time-poor consumers to purchase home-delivered, restaurant-quality food. Overall, industry revenue is anticipated to have risen at an annualised 6.9% over the past five years and is expected to total $21.3 billion in 2024-25, when revenue will decrease an estimated 0.8%. Industry profit margins have also risen thanks to higher customer volumes since COVID-19 pandemic restrictions eased.
Trends and Insights
- Rising household consumption expenditure has substantially benefited the industry in recent years. However, significant cost-of-living pressures have constrained further revenue growth.
- Despite the pandemic causing economic volatility, demand for low-cost dining has risen. As these restaurants have extensive takeaway menus, food delivery services’ popularity during pandemic lockdowns benefited this segment.
- Restaurants are concentrated in areas with a high population. For this reason, New South Wales, Victoria and Queensland house over 80% of Australia’s restaurants.
- Industry competition is growing. New restaurants are entering the industry to provide unique and trendy food options that fulfil Australia’s expanding foodie culture.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.9 % over the past five years, to reach an estimated $21.3bn in 2024.
Trends and Insights
Restaurants are facing increasing competition
- Restaurant operators in Australia are facing strong internal competition from other restaurants and significant external competition from establishments in other hospitality industries like cafes, pubs and fast food joints. These food establishments have strengthened their competitive edge against restaurants, especially in capturing the lucrative inner-city white-collar market.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Competition from other businesses is set to intensify
- Substitute food establishments like pubs, cafes and fast food chains are forecast to improve their quality and diversity over the coming years. More pubs are starting to rebrand, employing successful chefs to curate appealing menus.
Biggest companies in the Restaurants in Australia
| Company | Market Share (%)
2025 | Revenue ($short_0)
2025 |
|---|
There are no companies that hold a large enough market share in the Restaurants in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Premium dining, Mid-range dining and Low-cost dining. Premium dining is the largest segment of the Restaurants in Australia.
Trends and Insights
Greater takeaway possibilities have supported demand for low-cost dining
- Low-cost restaurants rely on quick service, high table turnover and low-price food. These restaurants offer value-based meals with few extras. They have lower operating costs and higher takeaway revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Pubs, Bars and Nightclubs in Australia
- Fast Food and Takeaway Food Services in Australia
- Cafes and Coffee Shops in Australia
Complementors
- Catering Services in Australia
- Fruit and Vegetable Retailing in Australia
International industries
- Chain Restaurants in the US
- Single Location Full-Service Restaurants in the US
- Italian Restaurants in the US
- Mexican Restaurants in the US
- Sushi Restaurants in the US
Table of Contents
About this industry
Industry definition
Restaurants mainly provide food and beverages for consumption on the premises. The industry includes licensed, unlicensed and BYO restaurants. The industry excludes cafes and coffee shops, theatre restaurants, catering services and shops that primarily offer takeaway food services.
What's included in this industry?
Premium diningMid-range diningLow-cost diningCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FOODIEFOOD HANDLINGCOOK-CHILLIndustry Code
ANZSIC 4511 - Restaurants in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rising household consumption expenditure has substantially benefited the industry in recent years. However, significant cost-of-living pressures have constrained further reve...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Despite the pandemic causing economic volatility, demand for low-cost dining has risen. As these restaurants have extensive takeaway menus, food delivery services’ popularity...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Restaurants are concentrated in areas with a high population. For this reason, New South Wales, Victoria and Queensland house over 80% of Australia’s restaurants.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Industry competition is growing. New restaurants are entering the industry to provide unique and trendy food options that fulfil Australia’s expanding foodie culture.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry has no major players as it’s highly fragmented and comprises many small restaurants. Restaurants focus on unique meal experiences because chain establishments ar...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Restaurants received substantial assistance from the government during the pandemic. These assistance programs include the Boosting Cash Flow for Employers Scheme, the Corona...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Demand has increased substantially following the COVID-19 pandemic, pushing up profitability. COVID-19 restrictions relating to venue capacity and international travel bans s...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Restaurants industry in Australia in 2024?
The market size of the Restaurants industry in Australia is $21.3bn in 2024.
How many businesses are there in the Restaurants in Australia industry in 2024?
There are 27,421 businesses in the Restaurants industry in Australia, which has grown at a CAGR of 3.5 % between 2019 and 2024.
Has the Restaurants industry in Australia grown or declined over the past 5 years?
The market size of the Restaurants industry in Australia has been growing at a CAGR of 6.9 % between 2019 and 2024.
What is the forecast growth of the Restaurants industry in Australia over the next 5 years?
Over the next five years, the Restaurants industry in Australia is expected to grow.
What does the Restaurants in Australia include?
Premium dining and Mid-range dining are part of the Restaurants industry.
How competitive is the Restaurants industry in Australia?
The level of competition is high and increasing in the Restaurants industry in Australia.
