Coffee love affair fuels cafe growth
The cafe sector is forecast to keep growing in the next five years as coffee drinkers take their love affair with caffeine to a new level, according to IBISWorld research.
The global financial consultancy believes the Australian cafe sector will grow an average 3.6 per cent a year until 2017-18.
IBISWorld research shows the Australian sector grew an average 2.2 per cent in the five years to 2012-13, at a time when discretionary spending fell in restaurants and other retail sectors.
Profits are not guaranteed, with veteran cafe owner Rob Mayberry claiming too many debutantes in the sector failed to succeed because they did not understand the basic ingredients of a good coffee shop.
Mr Mayberry, co-owner of Little Willy's and Bookend cafes in Northbridge, said some of these owners wasted money on high overheads, including fancy fit-outs, while ignoring the quality of the coffee.
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