The Changing Face of Australia’s Fish and Chip Industry

Fish and chips have long been an Australian takeaway favourite. From the local fish and chip shop at the end of the street to a meal enjoyed by the beach, the traditional combination has played an important role in Australia's takeaway food culture.

However, the industry is facing a changing marketplace.

According to industry estimates, businesses in Australia's Fish and Chip Shops industry have experienced weaker demand over recent years, with revenue expected to decline by an annualised 3.4% over the five years to 2024–25, reaching around $1.7 billion. Revenue is also expected to fall by a further 1.0% during 2024–25.

More competition for the takeaway dollar

One of the biggest challenges facing traditional fish and chip shops is the sheer number of alternatives available to consumers.

Australians can now choose from an enormous range of takeaway meals, including burgers, fried chicken, pizza, kebabs, Asian cuisine, sushi and increasingly sophisticated fast-casual food options.

Large fast-food chains are also continuing to expand. More than 300 new fast-food outlets opened across Australia during 2024, highlighting just how competitive the market has become.

Restaurants have also strengthened their takeaway and delivery offerings. This means consumers no longer need to visit a traditional takeaway shop to get a convenient meal. They can order from restaurants through delivery platforms or pick up restaurant-quality food on the way home.

For independent fish and chip shops, this creates pressure to compete not only on price, but also on quality, convenience, service and the overall customer experience.

COVID-19 changed the takeaway landscape

The COVID-19 pandemic created significant disruption across Australia's hospitality industry.

Although takeaway businesses were generally better positioned than dine-in restaurants during lockdowns, the pandemic changed consumer behaviour. Restaurants that had previously relied heavily on dine-in customers quickly introduced takeaway and delivery services.

This created a lasting change in the competitive landscape. According to an Australian quick-service restaurant industry report, restaurants captured a greater share of takeaway sales as they adapted their businesses during and after the pandemic.

For fish and chip shops, this meant that simply being a convenient takeaway option was no longer enough. Customers suddenly had far more choices available to them.

Health-conscious consumers are changing the menu

Another challenge is the growing focus on health and nutrition.

Traditional fish and chips are often associated with deep-frying, high-fat foods and generous portions. While many consumers still enjoy them as an occasional treat, increasing health awareness has encouraged some Australians to look for lighter alternatives.

The broader fast-food industry is responding to this shift. Industry research shows that greater awareness of nutritional content has encouraged businesses to introduce healthier and more premium choices, including options with less fat, sugar and salt.

This could also represent an opportunity for fish and chip shops.

Rather than abandoning the traditional menu, businesses can look at ways to modernise it. Grilled or baked seafood, fresh salads, smaller portions, healthier sides and alternative cooking methods can help attract customers who want a more balanced meal without giving up seafood altogether.

Cost pressures are another concern

The challenge isn't only about changing consumer preferences. Running a food business has also become more expensive.

The Australian Bureau of Statistics reported that meals out and takeaway food prices increased 3.5% in the year to December 2025, with higher labour and ingredient costs contributing to the increase. Meat and seafood prices also increased over the same period.

For fish and chip shops, higher operating costs can create a difficult balancing act.

Businesses need to cover increasing expenses while customers are becoming more conscious of how much they spend. Raising prices too quickly can risk losing customers, while absorbing higher costs can put pressure on already-tight margins.

This makes efficient purchasing, portion control, menu planning and waste reduction increasingly important.

Consumers still want value

Despite the challenges, takeaway food remains an important part of Australian life.

People are busy, and convenience continues to influence what they eat. The broader takeaway and restaurant market remains significant, with tourism-related consumption alone accounting for $32.1 billion in takeaway and restaurant meals during 2024–25.

The opportunity for fish and chip shops is therefore not necessarily disappearing — but the expectations of customers are changing.

Today's customer may want a meal that is affordable, convenient, tasty and, increasingly, aligned with their health preferences.

Where does the industry go from here?

The traditional fish and chip shop has plenty of competition, but it also has something many newer takeaway businesses don't: heritage and familiarity.

The challenge is finding ways to preserve what customers love while adapting to what modern consumers want.

That could mean introducing healthier cooking methods, offering locally sourced seafood, improving online ordering, developing delivery options, refreshing menus or providing better value through meal deals.

There is also an opportunity to make seafood origin more visible to customers. With new seafood labelling requirements coming into effect in Australia from 1 July 2026, consumers will have greater visibility over whether seafood is Australian, imported or mixed. This may create another opportunity for businesses that want to highlight Australian seafood and local sourcing.

A changing industry, not a disappearing one

Australia's fish and chip industry is undoubtedly facing pressure.

Competition is increasing, consumers have more choices, health consciousness is influencing food decisions and operating costs remain a challenge.

But fish and chips remain deeply embedded in Australian food culture.

The businesses most likely to succeed in the coming years may be those that recognise that customers aren't necessarily abandoning fish and chips — they're simply expecting more from them.

Better choice. Better value. Better quality. Better convenience.

For Australia's fish and chip shops, the future may depend on combining the familiarity of a traditional favourite with the expectations of a modern takeaway customer.