With the food and beverage industry revenue worth $73.3bn in Australia annually, the steady growth of the dining sector over the past five years has been fuelled by foodie culture across the nation. In areas known for quality food and consumer demand for fine dining, investing in the right restaurant can be a sound financial decision, especially as no companies in Australia enjoy a dominant market share in this industry, meaning restaurant monopolies don’t currently exist.
If you’re considering purchasing a restaurant for sale, there are several industry classes that you may opt to invest in, namely cafes and restaurants, takeaway food services, and pubs, taverns and bars. Across these are a variety of factors that have meant that dining out remains popular, and has in fact risen despite the decline of Australian wages between 2012 and 2016.
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Firstly, the convenience that cafés and faster food options offer the modern consumer has meant that demand is constant for dining options that doesn’t require cooking or cleaning in one’s own home. As a result the palette of the frequent Australian diner has evolved and in turn, propelled demand for fresh, and often healthy options, but most importantly meals that cannot easily be replicated at home. Restaurants, therefore, are increasingly rewarded for innovative and iconic signature dishes, even amongst the fast food industry class, such as takeaway burgers. As an investment therefore, seeking a restaurant that will be managed by an experienced and proactive team that is a market leader in the current dining climate is a shrewd decision. Leveraging the reputation of previous successful restaurants, celebrity chefs and ingredients or a strong social media presence, such as on Instagram will also bolster your asset. Similarly, ordering technologies such as UberEats, Foodoora and Menulog along with restaurant review sites will promote your venue in the virtual environment, with little marketing strategy involved on your behalf.
Also promisingly, is an industry outlook provided by Bankwest that projects from FY2015-16 the revenue from the café, restaurant and takeaway industry will grow 8.2% by FY2020-21, offering a decent return for those looking in the shorter to medium term. However, this is not to assume all restaurants will experience such growth given the competition between cafes and restaurants in the current foodie climate. Therefore, a proactive business plan and the ability to offer a bespoke dining experience is important in attaining and preserving today’s discerning and savvy customer.
Accordingly, having a captive audience of course partly involves the food you serve and your quality of service, but also, the location of your premises. In order for a restaurant to be a better investment, ensure it is in an established retail hotspot or even an area that you have identified as being underserviced by the cuisine you plan to offer. Here, research into the average household disposable income or demographics will provide valuable insight as to what type of venue will most likely succeed. Don’t forget access plays an important role in the success of your restaurant.
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