Why feeding the food industry is a part of the Western Sydney growth puzzle
According to the Australian Foodservice Advocacy Body, the average Australian household spent around 37 per cent of their total food and beverage budget on eating out prior to the pandemic (known as the food service dollar). That proportion dropped naturally during the lockdowns to around 13 per cent at its lowest but rebounded strongly, achieving pre-pandemic levels as quickly as 2023. In May, Australia's food service dollar surpassed these levels to a record high of 39 per cent. It is expected to increase further as cost-of-living pressures ease.
Greater Western Sydney is well placed to lead the national resurgence of the food service and hospitality industries, being home to cultures from all corners of the globe and offering a wide and diverse range of dining choices.
Significant infrastructure projects in Sydney's west will continue to boost demand for food service businesses across the supply chain. The new international airport opening in 2026, and the surrounding Bradfield City hub will more than likely create jobs in heavy industries where staff will be required on-site, with less ability to work at home, thereby creating further opportunities for food service growth.
Meanwhile, the new Sydney Metro West will create precincts where the provision of hospitality and food service will become important in shaping those hubs. Projects like Parramatta's Powerhouse Museum and the new football stadium in Penrith will also attract hungry tourists and sports-goers to spend money in Western Sydney.
KPMG's latest Enterprising Cities report predicts 173,000 new jobs will be created in Western Sydney over the next five years. Many new jobs created in the region in 2024 were within white-collar and population-oriented industries, such as healthcare and education. This population growth in the region will naturally have flow-on effects to the food and hospitality sectors.
Planned growth and migration into Greater Western Sydney; the broader food service spend increase; vibrant multicultural cuisine offerings, infrastructure projects and job creation in the region; changing demographics, social trends and socio-economic standings – the list can go on.
What does this mean? The business case will stack up for food service and hospitality participants to double down on success in the Greater Western Sydney region. While it might be tough right now, the commercial rationale will soon surface, a sentiment shared with a range of clients we work with in this sector.
And let's not forget this: hospitality and entertainment venues have the unique ability to shape and create an identity and a vibe within new and old precincts and locales. It isn't the buildings or the roads or amenities that necessarily create this identity, or that facilitate the connection between loved ones. It is the ambience, the atmosphere and the hospitality of these venues that will generate the desire for patrons to attend, connect and spend.
This is sometimes forgotten or understated when it comes to the growth conversation of Western Sydney. Nobody wants to live in a place where there's nothing fun to do and nowhere exciting to be, so hospitality is a vital piece of the puzzle when it comes to the region's growth.
Rather than growth for the sake of growth, now is the time to support the development of a place where people can really thrive through this industry. The opportunity is now for food service and entertainment to flourish in Greater Western Sydney.
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