New IBISWorld research reveals the Restaurants industry in Australia is benefiting from new ordering and delivery platforms, such as UberEATS, Deliveroo, Menulog, and Foodora, contributing to a revenue increase of 2.0 percent in 2017-18, to reach $21 billion.

“The food delivery sector has benefited from consumers’ changing lifestyle trends, including busier lives, higher workloads and diminishing leisure time. These social trends have helped boost demand for food delivery services, as time-poor consumers look to cut down on cooking time and make better use of their spare time,” said Bao Vuong, IBISWorld Senior Industry Analyst.

“IBISWorld research also found that Fast Food Services had yet to adjust to the food delivery boom, but players in this industry are now starting to enter the delivery game,” added Vuong.

Between UberEATS, Deliveroo, Menulog, and Foodora, IBISWorld estimates the four largest players have a market share of more than 75 percent in new ordering and delivery platforms.


Industries affected by new food ordering and delivery platforms


Industry 2017-18 Revenue

$ billions

2017-18 revenue

growth percent

Restaurants 21.0 2.0 28,252
Cafes and Coffee Shops 8.1 0.8 18,714
Fast Food Services 19.5 1.2 33,207



Changing landscape

Food delivery companies have not just changed the way consumers dine, but have also changed how restaurants are run, according to IBISWorld research. In recent times, restaurants without tables and chairs are opening purely to service these food delivery applications.

“By opening a pop-up store with just a commercial kitchen and no seating, operators can maximise floor space, save money on rent and fit out expenses, and improve profit margins,” said Vuong.

“Some restaurants have created delivery-only menus and adjusted their opening hours to cater specifically to this demand. Other restaurants have adapted by having separate service counters dedicated exclusively to UberEATS and Foodora couriers,” added Vuong.


Fast food floundering

Conversely, the Fast Food Services industry in Australia has not yet benefited from the food delivery boom, although this is changing.

“As a result of a slow response and lukewarm reception to new ordering and delivery methods, revenue for the Fast Food Services industry is only forecast to grow by 1.2 percent in the current year, to reach $19.5 billion. Currently, an estimated 25 percent of fast food restaurants embrace new ordering and delivery platforms,” said Vuong.

“In June 2017, both McDonalds and KFC launched partnerships with food delivery companies, with McDonalds partnering with UberEATS and KFC partnering with Foodora. Red Rooster has recently responded with its first foray into home delivery through Menulog,” added Vuong. “This has allowed Red Rooster to move out of its suburban stronghold, and penetrate inner-city Sydney and Melbourne locations for the first time.”

According to IBISWorld research, fast food firms must integrate dynamic food delivery applications to succeed in the increasingly challenging environment of the food service sector.


Changing course

In response to the rising popularity of food delivery applications, IBISWorld research found some food-service establishments have stepped up their game to provide a better meal experience.

“Restaurants, particularly fine dining establishments, have focused on differentiating themselves by providing a unique restaurant experience that home delivered food cannot provide. Small tweaks such as improved customer service and enhanced ambience through lighting and increased customer interaction with chefs can go a long way towards combating these apps,” said Vuong.

Fine dining restaurants comprise 39.0 percent of the Restaurants industry in Australia and generate $8.2 billion of industry revenue, according to IBISWorld.

“The outlook for fine dining restaurants is strong because they place a premium on taste, while new ordering and delivery platforms mainly focus on convenience and price,” concluded Vuong.