The Future of Quick Service Restaurants in Australia: Trends and Insights

The future of quick service restaurants in Australia is being shaped by powerful forces—technology, consumer behaviour, sustainability, and market competition. Once defined purely by speed and affordability, the QSR industry has evolved into a dynamic sector. Innovation in menu design, supply chain efficiency, and digital transformation are essential for survival. For operators navigating today’s economic pressures, the challenge is no longer just about serving food quickly. It’s about delivering seamless omnichannel experiences in fast food chains, balancing affordability with quality, and responding to consumer demand for healthy, sustainable menu options.

Current Market Overview

In 2024, the Australian QSR market was valued at AUD 29.13 billion. Analysts forecast a robust compound annual growth rate (CAGR) of 9.20% between 2025 and 2034 (Expert Market Research). Despite economic headwinds such as inflation and declining discretionary spending, the market continues to expand. Data shows that 178 net new QSR outlets opened across Australia in 2024, underscoring the resilience of the industry (BDC Partners).

Changing Consumer Expectations

Changing consumer expectations are at the heart of this growth. Customers want more than just fast food; they expect frictionless mobile ordering apps for QSRs, drive-through convenience in quick service restaurants, and menus that cater to both indulgence and health-conscious choices. At the same time, rising operational costs and labour shortages are forcing operators to rethink kitchen models, supply chains, and staff deployment. These challenges are prompting innovation in areas such as pre-cooked proteins for QSR efficiency, digital loyalty programs, and sustainable packaging.

Looking ahead to 2025 and beyond, the future of quick service restaurants in Australia will be defined by how effectively businesses embrace these trends. Operators that integrate technology, streamline operations, and align with evolving consumer values will be best positioned to thrive in an increasingly competitive market.

Technology & Digital Transformation in Australian QSRs

Digital transformation has become one of the most defining forces in the Australian QSR landscape. As consumer behaviour shifts towards mobile-first experiences, operators are investing heavily in digital platforms that streamline ordering, payment, and loyalty. The adoption of digital ordering platforms in fast food chains not only improves customer convenience but also drives operational efficiency by reducing front-of-house bottlenecks.

A report by IBISWorld found that over 65% of Australian QSR consumers now prefer to order online or through mobile apps, compared to only 28% five years ago (IBISWorld, 2024). Leading brands such as Guzman y Gomez and McDonald’s Australia have expanded their mobile ordering and loyalty app ecosystems, using data analytics to personalise promotions and increase average spend per transaction.

Automation in QSR Operations

Kitchen automation is also reshaping efficiency in QSRs. Automated fryers, robotic grills, and AI-powered kitchen management systems are no longer experimental—they are fast becoming mainstream. According to QSR Media Australia, 35% of franchise operators plan to invest in kitchen automation technologies by 2026 to reduce labour costs and ensure consistency across locations (QSR Media, 2025). Digital kiosks and self-service ordering have seen widespread adoption across Australia, with McDonald’s and Hungry Jack’s leading the charge. These systems not only reduce wait times but also increase order accuracy and allow customers to customise meals at scale.

Artificial Intelligence and Data Analytics

Artificial intelligence (AI) is now at the forefront of customer engagement in QSRs. Chatbots for online ordering, predictive analytics for menu planning, and AI-driven customer insights are giving operators an edge. In 2024, Domino’s Australia reported that AI-driven predictive ordering reduced delivery times by 20% while improving stock management (Domino’s Investor Report, 2024).

Industry Insight

As Paul Kearney, CEO of BDC Partners, noted in a recent QSR industry outlook:

“The QSR sector in Australia is no longer about just serving food quickly. It’s about creating digitally enabled experiences that are seamless, personalised, and consistent across every channel. Operators who invest early in digital transformation will define the competitive landscape for years to come.”

Menu Innovation & Health Trends in Australian QSRs

While speed and convenience remain core to the QSR model, consumer demand for healthy menu options in fast food chains is reshaping menus across Australia. Today’s customers want more than indulgence; they expect restaurants to offer choices that are nutritious, customisable, and aligned with broader lifestyle values such as sustainability and wellness.

Growth of Health-Conscious Offerings

According to Roy Morgan Research, almost 50% of Australians aged 18–34 say they actively seek healthier fast food options, a figure that has doubled in the past decade (Roy Morgan, 2024). This is reflected in the rise of salad-based meals, grilled proteins, and low-calorie menu choices across leading QSRs. Brands like Grill’d and Subway have positioned themselves strongly in this space by marketing fresh ingredients and customisable “better-for-you” offerings.

The Rise of Plant-Based Proteins

Plant-based innovation has become one of the fastest-growing segments in the QSR industry. Food Frontier’s 2023 report noted that the plant-based meat market in Australia grew by 47% between 2019 and 2022, with QSRs like Hungry Jack’s (with their Rebel Whopper) and Domino’s (with vegan cheese and plant-based toppings) capitalising on this momentum (Food Frontier, 2023). Consumers are not only looking for meat alternatives but also for functional foods—items enriched with extra protein, fibre, or probiotics.

Customisation as a Core Strategy

One of the defining trends in menu innovation is customisation. The ability to personalise meals in quick service restaurants—from portion sizes and toppings to protein choices—is now an expectation rather than a luxury. Data from QSR Media Australia shows that 72% of Australian consumers are more likely to return to a QSR that offers menu flexibility, reinforcing its importance for customer retention (QSR Media, 2024).

Industry Insight

As Simon Crowe, Founder of Grill’d, stated:

“Consumers are far more conscious today about what they’re putting into their bodies. For QSR brands, it’s no longer enough to be fast—you also have to be fresh, transparent, and give customers the ability to make their meal exactly how they want it.”

Sustainability & Supply Chain Innovation in Australian QSRs

Sustainability is no longer a niche concern—it has become a core expectation of Australian QSR customers. With climate change, waste reduction, and ethical sourcing dominating consumer conversations, fast food chains are under pressure to adapt. In fact, McKinsey’s 2024 Food Sustainability Report revealed that 63% of Australians say they prefer to buy from QSR brands that demonstrate strong environmental and ethical practices (McKinsey, 2024).

Sustainable Packaging in QSRs

Single-use plastics remain a pressing issue. Following Australia’s national commitments to phase out certain plastic items by 2025, QSR operators are accelerating the transition to sustainable packaging in fast food chains. Brands like McDonald’s and Hungry Jack’s have rolled out fibre-based straws and recyclable packaging, while smaller franchises are experimenting with compostable containers and reusable cup programs. According to Planet Ark, food packaging accounts for nearly 40% of Australia’s plastic waste stream, making this a critical area for QSR innovation (Planet Ark, 2024). By shifting to biodegradable materials and engaging in packaging take-back schemes, operators are reducing their environmental footprint and appealing to eco-conscious diners.

Local Sourcing and Supply Chain Transparency

Supply chain innovation is also reshaping the industry. Consumers increasingly want to know where their food comes from, prompting QSRs to highlight locally sourced ingredients in quick service restaurants. This not only supports regional farmers but also reduces transport emissions. A report by KPMG Australia found that 56% of QSR operators are investing in supply chain transparency tools, such as blockchain and QR code labelling, to verify the origins of meat and produce (KPMG, 2024).

Food Waste Reduction

Food waste remains a significant challenge for QSRs, with Foodbank Australia estimating that 7.6 million tonnes of food is wasted annually across the country, costing the economy more than $36.6 billion each year (Foodbank, 2024). To combat this, many QSRs are adopting portion control systems, partnering with food rescue charities, and using pre-cooked proteins to extend shelf life and reduce spoilage.

Industry Insight

As Alistair Schirmer, Managing Director of QSR Media Australia, explained:

“The QSR sector is under enormous scrutiny when it comes to sustainability. Brands that treat it as a marketing afterthought will be left behind. The winners will be those who build sustainability into their supply chain, packaging, and menu decisions from the ground up.”

Drive-Throughs, Delivery & Omnichannel Convenience in Australian QSRs

Convenience has always been the backbone of the quick service restaurant model, but in today’s market, it is being redefined through the rapid expansion of drive-throughs, delivery apps, and omnichannel service models. Consumers are no longer satisfied with a single ordering channel; they expect seamless integration across mobile apps, in-store kiosks, drive-through lanes, and delivery platforms.

Drive-Through Expansion in Australia

Drive-throughs have seen a renaissance in Australia, fuelled by pandemic-era behavioural shifts that persist today. BDC Partners’ 2025 Fast Food Report notes that 60% of new QSR outlets in 2024 included a drive-through option, compared with 42% a decade ago (BDC Partners, 2025). Brands like Guzman y Gomez, McDonald’s, and Oporto are investing heavily in dual-lane and digital menu board technology to improve speed and reduce congestion.

The Rise of Delivery Partnerships

Delivery remains a major growth driver for QSRs, with Australians spending more than AUD 2.6 billion on food delivery services in 2023, according to Statista (Statista, 2024). Partnerships with platforms like Uber Eats, Menulog, and DoorDash have become essential for capturing this market. However, rising delivery fees and platform commissions are prompting some QSRs to build their own in-house delivery systems to maintain margins.

Omnichannel Convenience in Quick Service Restaurants

The future of QSR convenience lies in omnichannel integration. Leading operators are ensuring that whether a customer orders via a mobile app, a self-service kiosk, a delivery app, or a drive-through lane, the experience is consistent, personalised, and seamless. Loyalty programs tied to digital ecosystems have become a powerful tool for this integration, with McDonald’s “MyMacca’s” app and Guzman y Gomez’s loyalty program standing out as prime examples.

Industry Insight

As Rochelle Burbury, Principal at Third Avenue Consulting, observed:

“Convenience is no longer just about being fast—it’s about being everywhere your customer wants you to be. The QSR operators who master omnichannel service will capture loyalty in a market where switching costs are low and competition is intense.”

Labour Challenges & Operational Efficiency in Australian QSRs

The Australian QSR industry is grappling with one of its most persistent challenges: labour shortages. Rising wages, high staff turnover, and difficulty attracting skilled workers are placing significant strain on operators. In a sector that relies heavily on casual and part-time staff, maintaining efficiency while managing costs has become a balancing act.

Labour Shortages in Australian Quick Service Restaurants

According to the National Skills Commission, the hospitality sector faced a 28% vacancy rate in food preparation roles in 2024, one of the highest across all industries (NSC, 2024). QSR operators report particular difficulties in regional Australia, where competition for labour is fierce and staff turnover is even higher than in metropolitan areas.

Rising Wage Pressures

The Fair Work Commission’s 2024 decision to increase the national minimum wage by 3.75% has placed further cost pressures on QSR operators (Fair Work Ombudsman, 2024). For franchise networks operating on thin margins, this has accelerated the need to find operational efficiencies.

Strategies for Operational Efficiency

To address these challenges, QSRs are investing in automation to improve restaurant efficiency. Automated kitchen equipment, such as robotic fryers and AI-driven rostering tools, can significantly reduce reliance on human labour during peak periods. Meanwhile, innovations such as pre-cooked proteins in QSR kitchens are helping operators minimise training needs and reduce food safety risks, ensuring consistency without requiring advanced culinary skills. Digital scheduling platforms are also being widely adopted to optimise rostering, ensuring labour is aligned with peak demand periods while reducing overtime costs. These systems, powered by predictive analytics, allow managers to plan staffing more effectively and minimise waste.

Industry Insight

As Craig Emerson, former Federal Minister for Small Business and current industry consultant, recently commented:

“Labour shortages are not going away in hospitality. The winners in the QSR sector will be those who can redesign their operations—whether through technology, menu simplification, or smarter sourcing—to make themselves less dependent on high staff numbers.”

Competitive Landscape & Market Outlook for Australian QSRs

Australia’s quick service restaurant market is large, growing, and increasingly competitive. Over the next five to ten years, the sector will be shaped by three broad forces: (1) continued outlet expansion and new entrants, (2) consolidation and franchisor investment in scale / operational excellence, and (3) margin pressure that’s forcing innovation in pricing, supply, and labour models. Below I unpack those forces and what they mean for operators and suppliers — with the most important data and sources cited.

Market Scale and Growth Outlook

The Australia QSR market was valued in the tens of billions (AUD 29.1bn reported for 2024 by Expert Market Research) and various market analysts forecast strong mid-single to high-single digit growth for the channel through the next decade. This reflects continued consumer demand for convenience and the fact QSR remains the largest profit channel in Australia’s foodservice market. Expert Market Research

Network Expansion and New Entrants

Net outlet growth remains positive: GapMaps’ 2024 annual network tracking shows the leading 36 QSR brands opened a net 178 new outlets in 2024 — a clear sign that brands are still investing in coverage and convenience (drive-thru, high-street, and shopping-centre locations). At the same time, international and U.S. entrants (and franchise rollouts) continue to add pressure — for example, new concepts and big-name chains aiming to scale in Australia. GapMaps

Consolidation, Franchising and Capital Flows

Many successful domestic chains are accelerating expansion via franchising and external capital (IPO / private equity). Guzman y Gomez is a high-profile example of rapid growth and capital markets activity driving network expansion and investor scrutiny. These capital flows mean larger groups can invest in tech, logistics, and supply chain improvements — but they also create winners and losers as competition for sites and labour intensifies. Reuters

Margin Pressure and the Innovation Response

Rising input costs (ingredients, energy), wage pressures, and delivery commissions are squeezing margins. Operators are responding with three clear playbooks: (A) cost-out via supply chain optimisation (more pre-prepared inputs, centralised kitchens), (B) tech to improve throughput (digital ordering, dynamic rostering, kitchen automation), and (C) product/price innovation (value tiers, LTOs, premium upsells). Industry research shows operators are increasingly investing in procurement and automation projects to protect margins. Expert Market Research

Competitive Dynamics to Watch

• Site Density and Drive-Thru Advantage: Brands that secure high-quality drive-thru sites will capture a disproportionate share of convenience spend; many new openings now prioritise drive-thru capability. BDC Partners

• Speed + Consistency as a Moat: Chains investing in standardised inputs (e.g., pre-cooked proteins, centralised batched production) and automation create a reproducible customer experience and reduce unit labour costs — making it harder for small independents to compete on scale. IMARC Group

• Pressure on Mid-Tier Players: As large national chains invest in tech and scale, mid-tier brands face pressure to either specialise (local/quality positioning) or consolidate/sell. Market commentary and analyst coverage suggest a bifurcation: well-capitalised chains grow aggressively while others need strategic re-positioning. News.com.au

  
  

Outlook — Practical Takeaways for QSR Operators & Suppliers

• Prioritise supply reliability and scalability. Brands expanding fast need suppliers who can support multi-site rollouts with consistent, HACCP-compliant products (this is a structural advantage for suppliers who can deliver at scale). Global Data

• Invest selectively in automation and digital where ROI is clear (drive-thru accuracy, labour scheduling, order throughput). Early adopters will see cost and service advantages. Future Market Insights

• Expect ongoing site competition and rising site costs — location strategy and format mix (drive-thru, dark kitchens, franchised food halls) will define winners. GapMaps

  
  

Frequently Asked Questions (FAQs) About the Australian QSR Market

1. What is driving growth in Australia’s quick service restaurant (QSR) industry?

Growth is being fuelled by consumer demand for convenience, the expansion of drive-thru outlets, investment in digital ordering systems, and the rise of delivery platforms. According to Expert Market Research, the Australian fast food and QSR market was valued at over AUD 29 billion in 2024 and continues to expand year on year.

2. How are QSRs managing rising labour and food costs?

Most QSR brands are investing in supply chain efficiencies, such as pre-cooked proteins and centralised kitchens, alongside automation and rostering software. This helps control wage costs, improve throughput, and ensure consistent quality.

3. Why are drive-thru outlets so important for QSR growth?

Drive-thru locations are a major growth driver because they combine speed, convenience, and accessibility. Research from GapMaps shows that brands with strong drive-thru expansion strategies are capturing a disproportionate share of new customers.

4. Which QSR chains are expanding the fastest in Australia?

Chains such as Guzman y Gomez, Domino’s, and other leading franchised brands are growing rapidly, with more than 170 new outlets added in 2024 across the top 36 QSR brands. This competitive expansion is reshaping the foodservice landscape.

5. What role do suppliers play in supporting QSR success?

Suppliers who can guarantee consistent, scalable, HACCP-certified products play a critical role in helping QSRs expand quickly. Pre-cooked proteins, standardised inputs, and reliable logistics support operators in maintaining consistency and profitability across multiple outlets.

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