. Then there are other home-grown outfits like Mary’s Burgers, Huxtaburger and Milky Lane that have amassed a fan following in the local burger market, worth $9.2 billion, according to research firm IBISWorld.Wendy’s ambition to retest the waters in Australia follows the recent trend of American burger giants attempting to crack the Australian market. Despite the hype, these interlopers have so far tasted limited success.
The operational costs of setting up shop in Australia is relatively higher compared to the US. To be even a fifth of the size of McDonald’s here, a new chain would have to roll out nearly 200 venues. “But that’s going to take them multiple years to roll out before you start to get any purchasing power on buying your potatoes cheaper and your buns cheaper,” said Brain.
Then you have the changing tastes of a younger generation, which is embracing flexitarianism - with an emphasis on plant-based foods“The oversized burger and the upsizing aren’t necessarily things that are going to resonate too well with the emerging demographics,” said Brain.