Australia’s Exploding Fast Food Scene: What You Need to Know About the Hidden Costs

Not too long ago, Australians had few fast food choices. If you craved a burger, you probably went to McDonald’s or Hungry Jack’s. For chicken, it was KFC or Red Rooster, and maybe Chicken Treat if you were in Western Australia. Pizza enthusiasts might recall Pizza Hut’s famous jingle, unless you were a Domino’s fan.

Fast forward to today, and the fast food scene has changed dramatically. In the past two decades, new spots have popped up everywhere. Industry experts believe the number of fast food outlets will continue to surge as big international chains eye Australia for growth, even during tough economic times.

So, what’s driving this expansion?

Last year alone, major chains added over 300 new locations, with KFC, McDonald’s, Subway, and Hungry Jack’s leading the charge. Mexican restaurants like Guzman y Gomez and Zambrero also climbed the ranks, marking a growth trend for tacos and burritos. Even smaller players like Mad Mex and Betty’s Burgers opened ten new shops each.

New American fast food brands are eyeing Australia too. Wendy’s returned to Australia in January with its first store on the Gold Coast. Chuck E Cheese and Firehouse Subs are also preparing to set up local shops.

Research shows that about 40% of fast food menus focus on burgers, 20% on chicken, and 16% on pizza. Interestingly, some chains are still expanding despite rising costs that make dine-out options less attractive for many families.

Peter Holmes from GapMaps highlighted that Australia is a prime growth market for fast food. He notes that in places like Los Angeles, consumers see a plethora of choices, while Australia still has a limited number of major brands. Even with people spending less due to economic pressures, fast food remains a cheaper alternative to traditional dining, motivating chains to broaden their appeal.

Analysts believe many choose fast food outlets as they adapt to rising living costs. IbisWorld predicts the number of fast food stores in Australia will jump from about 36,000 to over 39,000 by 2030, a significant increase.

Australia’s growing population is opening new areas for fast food. Major chains often operate on a model of one store for every 20,000 to 30,000 residents, targeting outer suburbs with fewer dining options. These areas become vital markets, especially for young families.

However, these communities often lack access to fresh, healthy foods. Research has shown a connection between fast food concentration and higher obesity rates, making these neighborhoods “doubly penalized.”

Experts like Dr. Priscila Machado point out that even seemingly healthier fast food options are often ultra-processed and may carry health risks, including links to cancer and heart disease. Many fast food items use industrial ingredients, designed to be convenient and appealing. The processing techniques lower nutritional value, making it harder for consumers to feel satisfied.

Fast food is likely to become even more entrenched in Australian culture. Chains are now promoting breakfast and snack menus more heavily to drive foot traffic. Some, like Subway and Grill’d, have also introduced drive-through services, while Guzman y Gomez stays open 24 hours to attract late-night diners.

With many fast food options available through delivery services like Uber Eats and Menulog, unhealthy food is more accessible than ever. Experts argue for local and state policies to manage the concentration of fast food places, especially around schools and residential districts. They advocate for more diverse, healthy food options and pedestrian-friendly environments.

Dr. Kate Sievert notes that while current policies focus on consumer choice, they often overlook broader issues within the food supply chain. Ultimately, she argues that fast food companies prioritize growth and shareholder profits instead of customer health.

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