Independent Foodservice

The Potential of Independent Foodservice Operators: A Roadmap for Food Manufacturers

The Australian foodservice industry is a lucrative and growing market that attracts many food manufacturers. However, it is also a highly fragmented, complex, and challenging market that requires a different approach from the grocery industry. One of the key differences is the dominance of independent operators, which accounts for the majority of the foodservice industry revenue and establishments.

Independent operators are those who own or operate one or a few outlets within a segment of the commercial foodservice industry. This means that food manufacturers have to deal with a diverse and complex customer base, each with their own preferences, needs and budgets. Moreover, the industry is facing increasing pressures from rising costs, changing consumer demands, environmental regulations, and technological disruptions.

In this study, we will explore the challenges and opportunities of the independent operator segment and propose several strategic recommendations for food manufacturers who want to compete and succeed in this segment. We will argue that food manufacturers need to develop a dedicated strategy for the foodservice industry and focus on three key aspects of their operating model: product innovation, cost-effective solutions, and distribution effectiveness.

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