Thinking of Buying a Pizza Delivery Business in Australia? Here Are 3 Vital Questions to Ask

The Australian pizza delivery and takeaway industry generated $4.48 billion in revenue in 2024, with average profit margins of 5.3%. Over the past 15 years, revenue growth has been weak, with an annualised 0.91% increase since 2008, while profit margins have declined due to rising input costs and delivery platform commissions.

Revenue is projected to grow modestly at 0.88% annually through 2030, reaching $4.72 billion, driven by population growth, premiumisation, and technology adoption. However, strong competition, high delivery fees, and shifting consumer preferences toward gourmet and healthier options mean buyers must carefully assess profitability and resilience.

1. Is the Business Financially Sustainable?

Why It Matters

Profitability in pizza delivery depends on balancing high-volume orders with efficiency in costs and operations. Purchases account for the largest expense, averaging 45–50% of revenue, while labour costs are around 20%. Delivery platform commissions of up to 30% have further eroded margins, particularly for independents.

Despite these challenges, gourmet and premium pizza operators have achieved higher pricing power and stronger resilience compared to traditional takeaway shops.

What to Check

• Revenue mix & margins – Compare profitability against the industry average of 5.3% to see if the business is outperforming peers.
  
  

• Cost pressures – Review exposure to fuel, meat, and vegetable prices, as these have caused margin volatility in recent years.
  
  

• Delivery model – Determine reliance on third-party platforms like Uber Eats or Menulog versus in-house delivery services.
  
  

• Debt & cash flow – Assess whether the business has sufficient cash flow to handle price-sensitive demand and rising overheads.
  
  

2. Does the Market Position & Customer Base Support Growth?

Why It Matters

Pizza delivery is highly competitive, with Domino’s commanding 31.5% of market share and Pizza Hut holding 6.2%. Independents compete by offering gourmet menus, dietary-specific products, and strong community branding.

Young consumers aged 15–34 represent 42% of industry revenue, driven by convenience and willingness to pay delivery premiums. Middle-aged parents, once core customers, have reduced consumption due to health and cost pressures.

What to Check

• Target demographic – Analyse whether the business attracts younger consumers through delivery apps, or families through traditional dine-in and takeaway.
  
  

• Competitive positioning – Review differentiation through gourmet, vegan, or gluten-free offerings compared to value-focused chains.
  
  

• Location advantage – Consider whether the store benefits from high urban density or is exposed to regional competition.
  
  

• Brand reputation – Look at reviews, repeat customer rates, and brand loyalty, which are critical in a saturated market.
  
  

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

Why It Matters

Consumer preferences are shifting towards healthier, gourmet, and tech-enabled ordering experiences. Virtual kitchens and delivery-only models are growing, lowering overheads while meeting online demand.

Meanwhile, compliance with food safety standards, fair wage laws, and digital privacy regulations for online orders is becoming increasingly important.

What to Check

• Menu innovation – Ensure the business has adapted to premiumisation, including vegan, gluten-free, and gourmet options.
  
  

• Technology adoption – Assess investment in mobile apps, online ordering, and digital loyalty programs.
  
  

• Operational model – Review whether the business could benefit from delivery-only or virtual kitchen strategies to cut costs.
  
  

• Compliance & regulation – Verify compliance with FSANZ food safety codes, the Competition and Consumer Act, and labour obligations.
  
  

Ready to Invest in a Thriving Pizza Delivery Business?

With steady demand from young consumers, rising premiumisation, and the growth of delivery-only models, the pizza delivery industry remains a viable investment.

Long-term success will depend on financial resilience, strong market positioning, and the ability to adapt to changing consumer preferences and technology trends.

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