Good times ahead for hospitality industry

The hospitality industry is expected to emerge from the global financial crisis bigger and better than ever, with business information research and analyst group, IBISWorld, identifying specific sectors of the industry expected to experience significant growth in the near future.

IBISWorld forecasts that Australians will spend $10.2 billion over the next 12 months on eating out at the more than 15,000 cafes and restaurants operating around the country.

"The cafe and restaurant industry is one of Australia's most competitive, with more than half of new businesses closing inside three years," said IBISWorld general manager, Robert Bryant. "However, the days of the country's eateries stomaching a slow economy are over, with IBISWorld forecasting the industry will grow by 3.8 per cent in 2010-2011 and 22 per cent over the next five years - numbers that compare very favourably to 1.7 per cent growth in 2009-2010 and 14.5 per cent over the past five years."

Despite difficult times of late, the catering industry is also expected to experience growth over the next few years.

"Australia's caterers and food service contractors have experienced lean times recently with their industry shrinking by 2.1 per cent in 2008-2009 and 1.1 per cent in 2009-2010 mainly due to the financial crisis eating into the budgets of everyday people and corporates of all sizes.

"However, IBISWorld forecasts renewed growth of 3.5 per cent in 2010-2011 and 20.7 per cent over the next five years."

IBISWorld believes that the Masterchef television series has been a key driver for the industry's growth with other sectors including cookbooks, cooking schools, kitchenware retailers and fine dining restaurants all reaping the benefits of the show's popularity. Supermarkets are also reporting an increase in the sale of certain ingredients that feature in Masterchef recipes.

"The success of Masterchef has heightened awareness of gourmet foods, which are leaping off the shelves," said Bryant. "For example, Coles has reported huge spikes of up to 1,400 per cent on unusual ingredients after they have featured in a Masterchef recipe. IBISWorld forecasts Australia's gourmet foods industry will be worth $5.5 billion by 2014-2015, which is 60.8 per cent more than it is worth today."

Source: Hospitality Magazine