Australia Cafe Market Situation 2018

Specialty Coffee Industry in Australia has reached peak maturity and saturation evident by an array of niche offerings exhibiting high end market fragmentation.
New innovative retail concepts, coupled with creative nuanced food and beverage offerings combine with social media to maintain growth in a highly competitive market.
Complimentary to this are end to end supply chain innovations where we are seeing milk producers, coffee producers and equipment producers also take chase and innovate.
We are at risk of confusing the customer with the plethora of offerings. However for the time beinh customers are benefiting the most.
Extreme competion virtically has afforded the consumer more choice than ever before at more locations and at lower prices. However upward pressure in the rental market coupled with downward pressure on retail spending is pushing the industry to a potential crisis point.
Wages are high in Australia and while interest rates are low and households are able to maintain their lifestyle spending retailers are able to break even with cost cutting and innovation, however a small interest rate rise may dry up the discretionary spending of most consumers in 2018-2020.
Email me for an industry SWOT analysis.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s