Treasure Chest | 11:29 AM
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today's idea is Quick Service Restaurants.
By Mark Woodruff
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today’s idea relates to Quick Service Restaurants.
Whose Idea Is It?
Boston Consulting Group
The subject:
Quick Service Restaurants.
A Boston Consulting Group survey of 2,000 consumers about Australian Quick Service Restaurants (QSR) suggests inflation has driven most of the sector’s recent growth, leaving operators increasingly reliant on taking market share rather than benefiting from category expansion.
While the QSR market has grown by around 5% annually over the past three years, it’s noted volumes have been broadly flat once price and product mix are stripped out.
The consultants assesses the Australian QSR market is not facing structural decline. Rather, the sector is undergoing a transition that is driving one of the most significant shifts in market share seen in recent years.
Consumers made it clear that macroeconomic conditions sustaining this limited level of growth in the sector are deteriorating.
The survey revealed a net 6 percentage points (ppts) of Australians reduced QSR spending over the past six months, rising to 9ppts when consumers were asked about plans for the next six months.
A handful of QSR operators are already executing on market share, but many continue to rely on price increases to support revenue growth, BCG observes.
More info:
Spending pressure is most evident among older Australians.
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