KFC, Sushi Hub, Guzman Y Gomez and Zambrero record the highest net new store openings
GapMaps, a cloud-based data intelligence platform used by brands to pinpoint optimal locations for its physical stores, has released its 2023 Annual Fast Food & Quick Service Restaurant (QSR) Retail Network Report, tracking store openings and closures in Australia for the 12 months to 31 December.
Monitoring 31 brands in 7,038 locations, 398 store openings were recorded, with 23 brands showing positive net store growth in 2023, of which the eight fastest growing brands accounted for 184 net new locations. This included major expansions from large chains like KFC, Hungry Jack’s, Pizza Hut, and the continued build out of the Sushi Hub, Zambrero, Guzman Y Gomez and Grill’d networks.
“Record population growth, cost of living pressures and declining retail sales defined 2023 in what has been an uncertain year. But despite uncertainties, Australians continued to dine out and takeaway, with total food and beverage sales increasing by more than 10%[1], or 4.2%, after removing inflation,” said Scott Johnson, Senior Analyst, GapMaps.
Of the major QSR brands, KFC showed the greatest growth adding 35 net new stores, lifting its total network to 785 nationwide. Subway, with the largest network of 1,227 stores, recorded a net change of +5 stores, which was repeated by McDonald’s (1,031 stores). Hungry Jack’s recorded a net change of +17 new stores, Pizza Hut (270 stores) saw net growth of +19 opening 24 new stores, and Crust (132 stores) added five new stores.
Across the other 23 QSR brands tracked, which accounts for 2,077 stores across Australia, Sushi Hub, Guzman Y Gomez, Zambrero, and Grill’d all reported strong net new store growth, adding 34, 26, 25, and 16 stores, respectively. Noodle Box and Fishbowl also recorded double digit net new store growth, with 12 and 10 each.
New store growth was spread across the country. While growth areas continued to provide opportunity for major brands, the continued development of Entertainment and Leisure Precincts within major shopping centres remains an opportunity for a number of the emerging brands. In addition, the ability of each store network to effectively service the AUD 7.6 billion food delivery sector remains a consideration in store expansion and optimisation.
In terms of the highest growth city, Sydney recorded 45 net new store openings. Melbourne was a close second, with 44, followed by Perth (36), Brisbane (12) and Adelaide (nine).
“Entering 2024, the majority of Australians now have a significantly greater choice of Quick Service Restaurants,” said Johnson.
“While over 75% of all Australians have lived within 3km of a Subway and McDonald’s for a number of years, now close to 52% of all Australians can access 10 or more QSR brands within 3km of home.”
The access to these brands varies significantly across each capital city as brands in suburban settings typically cluster in or around major shopping centres. As part of the 2023 annual report, GapMaps maps this variation in brand access across major capital cities and allows brands to explore this analysis in detail within the GapMaps platform.
“GapMaps provides insights on where brands are clustering and their observable expansion and optimisation strategies,” Johnson adds.
“In addition, GapMaps partnered with CommBank IQ to provide insight on the real spending habits of consumers at a local level, including food delivery spending. This detailed analysis of supply and demand within the sector is enabling clients to better understand, optimise and grow their store networks.”
A copy of the 2023 report can be obtained via email to marketing@gapmaps.com.