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Australians’ taste for dining out: updated report

Sarah Stowe

The restaurant industry is bouncing back. That’s according to IbisWorld industry analyst Stephen Gargano, who says “changing social trends have fuelled a recovery for the restaurant industry over the past five years, helping it to bounce back from a low point during the global financial crisis.”

In an update of IbisWorld’s Restaurants in Australia report, the industry (which doesn’t include takeaway food outlets) is expected to post annualised growth of 3.6 percent over the five years through 2014-15 – including a rise of two percent during the current year – to total $11.7bn. The Restaurant

Time-conscious consumers are using restaurants as a solution for their busier lifestyles. Consumer demand for quality food and fine dining experiences has fuelled industry revenue growth over the past five years.

“The industry’s performance has been lifted by the success of popular cooking TV shows, which have reconnected people with the pleasures of eating out”, says Gargano.

The developing food culture, combined with increasing consumer health consciousness and a focus on quality, is expected to provide opportunities for the industry to grow further. Operators have sought to take advantage of consumers’ moves towards informal dining, with casual, healthier menus driving sales.

However, competition is hotting up as fast food retailers in particular capitalise on these trends.

In an effort to boost profit, the industry is also expected to focus on better-quality meals and ingredients, for which consumers are willing to pay a premium price.