The fish and chip Shops industry in Australia has been struggling over the past five years, with competition being the number one adversary for operators, according to IbisWorld.

Over the five years through 2013-14, consumers have flocked to alternative fast food options, such as burger franchises, sandwich bars, and international fast food takeaway.

In the five years through 2013-14, industry revenue is forecast to decrease at annualised 1.1 per cent to total $684.9 million.

In 2013-14, industry revenue is forecast to fall by only 0.3 per cent, with higher consumer sentiment levels buoying a year of otherwise struggling revenue.

Consumers are now exposed to a greater range of takeaway options than ever before, with traditional takeaway establishments such as fish and chip shops losing out due to their generic food options.

IbisWorld industry analyst Ryan Lin, says the rising health consciousness of Australian consumers has deterred them from consuming traditional fish and chips due to their high fat content.

Despite poor conditions, industry operators have begun to fight back. Fish and chip shops have started to adopt low oil air fryers and increase their food provision to appeal to health conscious consumers and improve their overall image as an increasingly healthy fast-food option.

“Over the past five years, fish and chip shop operators have also reduced their dependency on employed labour as they take up owner operation,” says Ljn.

This has effectively allowed shops to cut back wage costs to boost profit margins at the expense of their own time. The industry exhibits a low level of market share concentration and has no major players.

Over the next five years, competitive forces are anticipated to keep the fish and chip shops industry on the defensive. The lacklustre uptake of healthier fish and chip options is expected to be due to the high fat and unhealthy stigma attached to traditional fast food.

Industry establishments in high pedestrian traffic locations are anticipated to perform more favourably, leading to a race for prime locations. Industry operators that are unable to keep up with changing conditions are expected to exit the industry over the next five years.

For more information, visit IBISWorld’s Fish and Chip Shops report.