Thinking of Buying a Fish & Chip Shop Business in Australia? Here Are 3 Vital Questions to Ask

The Australian fish and chip shop industry generated $1.7 billion in revenue in 2025, with profit margins averaging 16%. While long-term revenue has declined at an annualised rate of 1.9% since 2008, the industry is projected to return to modest growth of 1.1% annually through 2031, reaching $1.82 billion.

Traditional operators face challenges from rising health consciousness, competition from fast food chains, and higher input costs for seafood, beef, and cooking oils. However, opportunities exist for shops that diversify menus, embrace healthier preparation techniques, and build strong local reputations.

1. Is the Business Financially Sustainable?

Why It Matters

Profitability in fish and chip shops is shaped by input costs, sales volumes, and the ability to maintain margins in a highly competitive takeaway sector. Purchases are the largest expense, with seafood, beef, oils, and potatoes making up a significant share of costs. Many operators have struggled to pass on rising input costs due to price-sensitive customers.

Despite these pressures, average industry margins of 16% are relatively strong compared to other takeaway categories, especially for well-located, family-run businesses.

What to Check

• Revenue and margins – Compare performance against the industry average margin of 16%.
  
  

• Purchases & costs – Review exposure to seafood and beef price volatility, as purchases account for the largest cost share.
  
  

• Wage structures – Many operators use family or part-time labour to keep wage costs low (12–14% of revenue).
  
  

• Resilience – Check if the business survived recent downturns without significant debt, showing resilience to weak consumer sentiment.
  
  

2. Does the Shop Have a Strong Market Position?

Why It Matters

Fish and chip shops are highly fragmented, dominated by small, family-owned businesses. Success depends on location, foot traffic, and menu quality. Shops near seaside towns or in dense suburban areas benefit from high visibility and tradition-driven consumer demand.

However, younger consumers are increasingly health-conscious and less loyal to traditional takeaway, while older demographics remain the most reliable customers.

What to Check

• Location advantage – Assess whether the shop is positioned in a high-foot-traffic area or tourist destination.
  
  

• Customer demographics – Review reliance on older, tradition-driven customers versus younger, health-conscious markets.
  
  

• Competitive pressures – Check proximity to burger chains, sushi outlets, and healthier takeaway competitors.
  
  

• Brand reputation – Look for evidence of repeat business, strong reviews, and established community loyalty.
  
  

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters

Consumer expectations are shifting toward healthier and premium takeaway options. Operators that expand menus with grilled seafood, salads, vegan choices, and gluten-free products are better positioned for growth.

Technology adoption also remains low in the industry, with many shops relying solely on walk-in traffic. Shops that embrace online delivery and digital ordering systems can capture additional demand.

What to Check

• Menu diversification – Assess inclusion of premium seafood (e.g., oysters, prawns) and healthier alternatives such as air-fried options.

• Technology adoption – Review presence on delivery apps and digital ordering systems.
  
  

• Cost management – Check supply chain resilience and inventory controls to manage seafood and oil price fluctuations.
  
  

• Adaptability – Ensure the shop is not reliant solely on traditional deep-fried products, but evolving with consumer trends.
  
  

Ready to Invest in a Thriving Fish & Chip Shop Business?

With its deep cultural roots in Australia, strong profit margins, and opportunities to adapt menus to modern tastes, the fish and chip shop industry remains attractive for buyers.

Long-term success will depend on financial efficiency, strong local positioning, and the ability to meet health-conscious consumer demand.

For Buyers:
Create an account to set up alerts here.

For Sellers:
Sell Your Business here.