Restaurant turnover leads retail growth
August saw caf, restaurant and takeaway turnover grow 6.6 percent to $3.6 billion, while the broader retail sector grew only three percent over the same period, according to the Australian Bureau of Statistics.
Performance was strongest in the ACT, with a 19.7 percent increase month on month to $70.5 million, while South Australia recorded a 16.6 percent increase to $190.3 million. Tasmania also saw a 15 percent growth to $51.5 million.
Restaurant & Catering Australia (R&CA) CEO John Hart said the results are a positive indication of state markets returning to normal, after extended periods of sluggish growth.
“South Australia and the ACT have been doing it tough with consecutive declines in industry turnover over the past year. August results are a positive sign consumer sentiment is improving. The test will be whether these numbers hold true through the warmer months and Christmas trading period,” Hart said.
NSW and Victoria continued to perform strongly with growth of 7.1 percent and nine percent. These are Australia’s two largest dining markets, valued at $14.2 billion and $9.7 billion annually.
Queensland saw a 2.2 percent increase to $752.3 million, while Western Australia saw a 2.4 percent increase to $447.2 million. This follows almost five consecutive months of declining industry turnover in these markets.
Hart said while restaurant turnover has improved, so too have takeaway sales.
“The growth in takeaway turnover is staggering – growing 11.6 percent to $1.5 billion in August 2016.
“The market is changing as people seek out more casual forms of dining. The rise of Deliveroo and UberEATS means this trend is likely to continue well into the future,” said Hart.