Australia Fast Food Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Fast Food Market Trends

The Australia fast food market excels at delivering quick meal options for busy individuals and families, seamlessly fitting into fast-paced lifestyles. It provides diverse cuisines, from burgers to Asian dishes, accommodating various tastes and dietary needs. Competitive pricing keeps fast food affordable for a wide audience, enabling families and individuals to enjoy meals without financial stress. According to the Australian Taxation Office, an average cost of sales exceeding USD 600,000 contributed to a 37% boost in the pizza food service market in 2021-22, driving demand of the Australia fast food market. With numerous strategically located outlets, customers can easily access quick meals, and delivery and takeout options enhance convenience for busy consumers.

Many fast food brands are prioritizing healthier menu options and transparent ingredient sourcing to cater to health-conscious consumers. The industry thrives on innovation, regularly introducing new items to encourage repeat business. The Australian fast food market dynamics and trends are being influenced by numerous job opportunities, particularly for young and entry-level workers, which positively impact local economies and provide valuable work experience. Among quick-service restaurant brands, Subway, the American sandwich franchise, has the most locations in Australia, focusing on fresh ingredients and nutritious menu offerings that appeal to health-minded customers.

Australia Fast Food Market Growth

The Australia fast food market is experiencing growth due to the integration of technology, such as mobile ordering and delivery apps, which enhance customer convenience and draw more customers to outlets. Furthermore, the franchise model facilitates quick brand expansion and mitigates risks for entrepreneurs, boosting brand recognition and overall Australia fast food market development. In August 2024, KFC Australia launched voice AI in its drive-thrus, assuring that no jobs would be lost due to this innovation. The fast food chain introduced voice AI technology to enhance operations and customer service. At participating locations, customers had their orders taken by the AI, with staff available for assistance if necessary. Expansion would be considered after evaluating the trial results.

Urbanisation and busy lifestyles are fueling demand for quick meal solutions in metropolitan and suburban areas. Competitive pricing and promotions make fast food accessible to budget-conscious consumers, while effective social media marketing enhances customer engagement and brand loyalty, all contributing to significant Australia fast food market growth. In June 2024, McDonald’s introduced a new “smart” meal to its menus as Australians faced ongoing cost-of-living challenges. The McSmart Meal included two burgers, Small Fries, and a Small Soft Drink for $6.95, and was exclusively available in Australia, responding to consumers reconsidering drive-through and UberEats orders due to rising costs.

Australia Fast Food Market Insights

• In July, food retailing saw a seasonally adjusted increase of 0.2% (USD 30.2 million), with other specialized food retailing rising by 1.3% (USD 13.3 million), as reported by the ABS.
• According to ABS, revealed that total revenue for the fast food and takeaway services sector exceeded 23 billion Australian dollars in 2023, marking a $2.4 billion increase from the previous year.
• According to industry reports, the eight fastest-growing brands, including KFC, Hungry Jack's, Pizza Hut, Zambrero, Guzman y Gomez, and Grill'd, opened a total of 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. The premium Australian lamb range featured the Greek lamb tzatziki and lamb meat lovers pizzas, along with the Greek lamb tzatziki meltzz, slow-cooked lamb pasta, and cheese ‘n’ mite scrolls.

April 2024

Zambrero, Australia’s largest Mexican QSR chain, appointed Today the Brave as their full-service creative partner to facilitate global expansion and support their extensive network of over 200 restaurants in Australia.

Australia Fast Food Market Drivers

Health Consciousness

The demand for healthier options is rising in the Australia fast food market. Consumers are increasingly conscious of nutritional value, leading brands to provide menu items that include fresh ingredients, reduced calorie counts, and plant-based alternatives. Many fast-food chains are improving transparency by clearly displaying nutritional information and sourcing ingredients responsibly. This trend in Australia fast food market indicates a wider movement toward wellness, as Australians seek convenient meals that support their health objectives. In September 2024, Konala partnered with Fransmart to launch a healthy fast-food franchise. The menu includes a range of flavorful protein bowls, such as Bang Bang Shrimp and Poke, with some options containing up to 63 grams of protein. Guests can select a base of white or brown rice, greens, or a combination of both. Moreover, Konala’s menu is entirely gluten-free, avoiding fryers and high-sugar sodas, distinguishing it in a market filled with less healthy choices. Each bowl includes listed macros, enabling customers to easily adhere to their health goals.

Digital Transformation

The Australia fast food market is experiencing growth due to the integration of technology, which is transforming customer experiences. Mobile ordering, delivery apps, and contactless payment methods have become standard, increasing convenience for consumers. Fast food chains are using data analytics to tailor marketing strategies and enhance operational efficiency. Furthermore, the rise of ghost kitchens and delivery-only restaurants indicates a shift in how consumers obtain food, emphasising speed and accessibility. This digital transformation is essential for attracting tech-savvy customers and adapting to their changing preferences, ultimately boosting the Australia fast food industry revenue. In March 2024, Red Rooster introduced crave_ware, an AI-powered wearable designed to detect hunger cues. Created in partnership with creative agency whiteGREY, this innovative t-shirt monitors stomach sounds and places customised meal orders based on the intensity and duration of the rumbles.

Opportunities in the Australia Fast Food Market

Sustainability Initiatives

The Australia fast food market is experiencing growth as sustainability becomes a crucial focus for brands in the sector. Numerous chains are embracing eco-friendly practices, such as reducing plastic use, sourcing ingredients locally, and implementing waste management strategies. This dedication to sustainability not only attracts environmentally conscious consumers but also aligns with global corporate responsibility trends. Brands that prioritize sustainable practices are likely to enhance their reputation and cultivate customer loyalty, reflecting the growing demand among Australians for ethical consumption, which is influencing the fast food demand growth. In May 2024, Atiyah, Australia's first zero-carbon street food kitchen, opened in Melbourne's Federation Square. Powered entirely by renewable energy, Atiyah offers authentic Lebanese dishes and is the first Australian hospitality business certified carbon neutral by Climate Active.

Market Restraints

The Australia fast food market faces several restraints, including increasing health consciousness among consumers, who prefer healthier meal options, and stringent regulatory challenges that raise operational costs. Intense competition among numerous brands can lead to price wars, diminishing profit margins.

Economic fluctuations affect consumer spending while changing preferences for fresh and sustainable food put pressure on traditional fast food offerings. Additionally, supply chain disruptions can lead to shortages, and high turnover rates create labour shortages, impacting service quality. Finally, growing environmental concerns demand that brands adopt sustainable practices or risk losing customers.

Australia Fast Food Industry Segmentation

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

Market Breakup by Product Type

• Burger and Sandwich
• Pizza and Pasta
• Asian and Latin American Food
• Others

Market Breakup by Service Type

• Delivery
• On-Premises
• Takeaway

 Market Breakup by Region

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

Australia Fast Food Market Share

By Service Types Analysis

The Australia fast food market is thriving due to the benefits of delivery services. These services provide convenience for busy individuals and families, enabling them to enjoy meals at home, which increases satisfaction and sales. Additionally, delivery expands the customer base by reaching those with limited access to physical locations. Higher order frequency and enhanced customer experiences foster loyalty, while collaborations with delivery platforms improve efficiency without requiring substantial investment driving growth in the Australia fast food industry. In July 2024, Wing partnered with DoorDash to expand its services to Melbourne, Australia, launching a new drone delivery system. This initiative allowed around 250,000 residents in Melbourne’s eastern suburbs to order small goods from Eastland Shopping Centre through the DoorDash app, making Melbourne the largest city in Australia with Wing's drone delivery.

In the Australia fast food market, on-premises dining provides numerous benefits. Customers experience immediate satisfaction by enjoying meals without waiting for delivery, which enhances their overall experience. It encourages social interaction, drawing in families and groups, thereby increasing sales. Moreover, brands can present their unique identity, fostering customer loyalty. Direct service enables upselling and greater control for diners, resulting in improved satisfaction and encouraging repeat visits, all contributing to the Australia fast food industry revenue. In December 2023, a popular fast-food chain submitted plans to open a 24-hour restaurant in Mosman village, offering residents a taste of Mexico. Guzman y Gomez, or GYG, intended to serve tacos, burritos, and nachos from 890 Military Rd in 2024, marking their first round-the-clock franchise in NSW.

Australia Fast Food Market Regional Insights

Victoria fast food market occupies a significant share in the market due to the growing prevalence of on-premises dining and healthier fast-casual options. Queensland favours casual dining in its warm climate, while Western Australia combines international chains with local outlets, emphasising sustainability.

According to McDonald's Australia’s latest filings with ASIC, the company reported a 7 per cent increase in sales for 2023, totalling USD 2.144 billion from its company-owned restaurants and rental income. Total system-wide sales, including both company-owned and franchised locations, reached around USD 7 billion, significantly boosting the growth of the Australia fast food industry.

Competitive Landscape

The key players in the Australia fast food market have expanded to various countries, providing a lively dining experience along with takeout and delivery options. They focus on using fresh ingredients and creating an energetic atmosphere, which makes them a favored option for casual dining. These companies also prioritize community engagement and sustainability.

Key Industry Players

McDonald’s Corporation: Headquartered in Chicago, Illinois, was established in 1940. It is one of the world’s leading fast-food chains, famous for its hamburgers, fries, and breakfast items. Originally a small barbecue restaurant, it transformed into a global franchise model focused on efficiency, operating thousands of locations worldwide to cater to diverse tastes.

Domino’s Pizza Inc.: Founded in 1960 and based in Ann Arbor, Michigan, it started as a single pizza shop and has become a global leader in pizza delivery and carryout. Founded by Tom Monaghan and his brother, the company emphasizes quick service and quality, leveraging technology for online ordering and delivery tracking to enhance customer experience.

Yum! Brands, Inc.: Headquartered in Louisville, Kentucky, was established in 1997 and owns well-known brands like Taco Bell, KFC, and Pizza Hut. It emerged from the spinoff of Tricon Global Restaurants, focusing on expanding its global reach and menu variety. The company prioritizes innovation and customer satisfaction, adapting its offerings to local preferences.

Burger King Corporation: Established in 1954 and based in Miami, Florida, is renowned for its flame-grilled burgers, especially the Whopper. Initially founded as Insta-Burger King in Jacksonville, it underwent a significant rebranding to become a key player in the fast-food industry. Today, Burger King operates globally, emphasizing quality, value, and diverse menu options.

Other key players in the Australia fast food market report include Tim Hortons Restaurants International GmbH, Nando’s, Subway IP LLC, and Starbucks Corporation, among others.

Recent Development

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 after a 172% sales increase from June to December 2023, which Gami Chicken attributed to the success of its healthier individual menu items.

September 2024

KFC Australia adopted a cautious approach to AI in drive-thrus by implementing voice AI to assist staff with order management. This technology enabled employees to focus on food preparation and customer interactions, ensuring accurate orders and facilitating real-time modifications.