Industry Insights

DINING AUSTRALIA 2016

Latest Trends in Australian DiningAustralian Card Members are driving continued, strong growth across alldining categories.

American Express® Business Insights is pleased to present the Dining Trend Monitor for 2016.

Processing millions of card transactions every day gives us a unique view across a range of industries and allows us to report on emerging trends in consumer behaviour. Our clients are then able to benefit from this analysis by adapting to change ahead of the curve.

We have once again analysed our data relative to the Australian dining industry and identified trends across the key segments of Fine Dining, Restaurants, Casual Dining and Take-Away/Quick Service Restaurants (QSR). We have analysed the contours of growth and change in the dining habits of American Express® Card Members nationally and provided insight into trends in major capital cities.

Our analysis shows that the robust growth in all dining categories seen in 2015 has continued in 2016 and in some cases accelerated. The ongoing impact of digital payments technology, and the diversification and premiumisation of the quick service/take-away and casual dining sectors is attracting more frequent custom, while spend at restaurant and fine dining establishments continues to grow.

We hope you’ll find these insights to be a valuable contribution to the growth and success of your business. Please contact your relationship manager if you are interested in receiving similar analysis that is specific to your business.

Emily Roberts Vice President & General Manager Merchant Services Australia & New Zealand

2016 KEY TRENDS

HEADLINE INSIGHTS

KEY TRENDS

Australian diners are spending more on dining, and spending far more often.

Australia’s continued appreciation for quality dining experiences – from fine dining to take-away – is clearly reflected in recent consumer spend behaviour. Factors such as increased consciousness of the source and quality of ingredients, an expanding range of dining options and the influence of technology (such as ordering and delivery apps, and tap and go payments) are converging to drive growth at all levels within and beyond metropolitan areas.

Crucially, transaction frequency is significantly up compared to 2015. The efforts of dining establishments to combine quality, value and convenience are being rewarded as consumers increasingly choose to eat out. This in turn is making what might previously have been considered as more premium dining experiences into options that are accessible and attractive to a greater number of customers.

There are marked increases across the dining industry in 2016 vs. 2015.

Fine Dining

Quick Service Restaurant

(QSR)/ Take-Away

in total spend in total spend in total spend

in total transactions

in total transactions

in total transactions

6.7% 18.5% 31.5%

15.8% 36.6% 33.3%

in total spend

12.2%

in total transactions28.2%

transactions per diner23.3%

Overall Dining

Restaurants Casual Dining (Cafés, bars

& clubs)

in total spend

6.9%

in total transactions9.1%

MEAL TIME SPEND AND TRANSACTIONSDinner time is prime time for: Early evening dining is a valuable contributor all round.

Fine Dining

Restaurants

of spend of transactions

of transactionsof spend of transactions

of transactions48%

58%Casual Dining

14%QSR/Take-Away

17%

16%Restaurants

20%Fine Dining

SHARE OF TRANSACTIONS

Casual Dining

17%

42%

14%

27%

0%

Fine Dining

4%

1%

23%

20%

52%

QSR

1%16%

36% 17%

30%

Restaurants

4%

1%

28%

15%

52%

BreakfastLunchEarly eveningDinnerOther

SHARE OF SPENDDinner enjoys 51% of all dining spend and 36% of all transactions.

Breakfast (4 AM - 11 AM)

Lunch (11 AM - 4 PM)

Early evening (4 PM - 7 PM)

Dinner (7 PM - 2 AM)

Other (2 AM - 4 AM)Share of Spend Share of Transactions

1%

5%

26%

17%

51%

1%

12%

35%

16%

36%

FINE DINING INSIGHT QSR/TAKE-AWAY INSIGHTAverage transaction size is slightly down.

More people are eating out at high end restaurants. But transactions per diner are well up.

number of diners

7.4%20.0%1.4%

SYDNEY DINERSIn 2016 Sydney diners accounted for 37% of all diners nationally with a 41% share of overall spend.

SYDNEY DINERS: CUSTOM AND SHARE OF SPEND Restaurants QSR/Take-Away

Share of Spend 49% 41% 40% 39%

Share of Diners 43% 37% 36% 37%

Fine Dining Casual Dining

OVERALL SPEND GROWTH DRIVERS 2016/2015Sydney vs. Regional NSW Restaurants

Total Spend

Total Transactions Diners

Ave Spend per Diner

Ave Spend per

TransactionTransactions

per Diner

Sydney 12% 31% 7% 5% 14% 22%

Regional NSW 12% 27% 5% 6% 11% 20%

OVERALL SPEND GROWTH DRIVERS 2016/2015

Total Spend

Total Transactions Diners

Ave Spend per Diner

Ave Spend per

TransactionTransactions

per Diner

Melbourne 12% 27% 7% 4% 12% 18%

RegionalVictoria 12% 28% 5% 7% 13% 22%

Melbourne vs. Regional Victoria Restaurants

MELBOURNE DINERSIn 2016 Melbourne diners accounted for 29% of all diners nationally with a 25% share of overall spend.

MELBOURNE DINERS: CUSTOM AND SHARE OF SPEND Restaurants QSR/Take-Away

Share of Spend 29% 27% 24% 16%

Share of Diners 30% 28% 28% 23%

Fine Dining Casual Dining

OVERALL SPEND GROWTH DRIVERS 2016/2015

Total Spend

Total Transactions Diners

Ave Spend per Diner

Ave Spend per

TransactionTransactions

per Diner

Perth 11% 27% 6% 4% 13% 19%

Regional WA 12% 28% 4% 8% 13% 23%

Perth vs. Regional WA Restaurants

PERTH DINERSIn 2016 Perth diners accounted for 10% of all diners nationally with a 6% share of overall spend.

PERTH DINERS: CUSTOM AND SHARE OF SPEND Restaurants QSR/Take-Away

Share of Spend 6% 6% 5% 8%

Share of Diners 10% 10% 10% 10%

Fine Dining Casual Dining

OVERALL SPEND GROWTH DRIVERS 2016/2015

Total Spend

Total Transactions Diners

Ave Spend per Diner

Ave Spend per

TransactionTransactions

per Diner

Brisbane & Gold Coast 2% 0% 1% 3% 2% 1%

Regional Queensland 7% 10% 8% 0% 2% 2%

Brisbane & Gold Coast vs. Regional Queensland

BRISBANE & GOLD COAST DINERSIn 2016 Brisbane & Gold Coast diners accounted for 21% of all diners nationally with a 10% share of overall spend.BRISBANE DINERS: CUSTOM AND SHARE OF SPEND Restaurants QSR/Take-Away

Share of Spend 5% 10% 12% 13%

Share of Diners 7% 16% 21% 17%

Fine Dining Casual Dining

Source: American Express Australia internal data, January 2015 - December 2016. Data does not represent American Express financial performance.

OVERALL SPEND GROWTH DRIVERS 2016/2015

Total Spend

Total Transactions Diners

Ave Spend per Diner

Ave Spend per

TransactionTransactions

per Diner

Adelaide 34% 33% 17% 14% 1% 13%

Regional SA 31% 33% 11% 18% 1% 20%

Adelaide vs. Regional SA Restaurants

ADELAIDE DINERSIn 2016 Adelaide diners accounted for 7% of all diners nationally with a 4% share of overall spend.

ADELAIDE DINERS: CUSTOM AND SHARE OF SPEND Restaurants QSR/Take-Away

Share of Spend 2% 4% 4% 3%

Share of Diners 3% 7% 7% 5%

Fine Dining Casual Dining

BEST DINERS TOP 10% BY SPEND

The best diners (Top 10% by total dining spend) are valuable in every dining category

The top 10% of diners account for 52% of overall dining spend.

Best DinersBottom 90% Diners

Best DinersBottom 90% Diners

Share of Overall Dining Spend

52%

48%

Share of Diners

Casual Dining

59%41%

Fine Dining

69%

31%

QSR

78%

22%

Restaurants

57% 43%

90%

10%

American Express Australia Limited (ABN 92 108 952 085). ® Registered Trademark of American Express Australia Limited, 12 Shelley St, Sydney NSW 2000.