Australians love a good barbecue, so it’s no secret that butchers enjoy stable demand.
But if you want to maximise your profits, grow your business and beat your competitors, you need knowledge.
Most people enjoy eating meat, but they also don’t have the resources (or stomach) to process it themselves. That’s why butchers have become a staple of the Australian economy.
But it’s not as simple as setting up your butchery, preparing some meat and watching the cash roll in.
Several factors affect your business, such as:
- Consumer trends
- Marketing choices
And all the other aspects of running a successful company.
The good news is we’ve done the research for you and put together everything you need to know about running a successful butchery below.
Ways to Differentiate Your Australian Butchery
Your brand needs to offer something unique and desirable to stand out.
Here are a few things you can do:
- Offer premium and exotic meats: zebra, buffalo, crocodile, alpaca—chances are your customers have never tried or even seen these meats advertised. Offering these at your butchery can be an instant differentiating factor.
- Find a unique brand angle: unique angles can be anything from the “Local Friendly Butcher” to the “High-end Premium Butcher.” Whichever angle you choose, make sure your customers value it, it’s not what everyone else is doing, and it’s an angle you resonate with.
- Monthly subscriptions: convenience and novelty are big selling points for people today. That’s why subscription boxes (mystery and pre-chosen) have become popular across many sectors. Your monthly “Butcher Box” can include staple cuts and meats and a mystery cut or type of meat that customers likely haven’t tried.
Legal and Environmental Issues For Butchers in Australia
Legal and environmental issues are important factors to consider when running a butchery in Australia.
- Food safety: since you’re dealing with raw meat, you’ll need to follow your state’s food safety obligations. For example, the SA Food Act mentions complying with food labelling standards, cleanliness and more.
- Licensing: for most Australian states, you’ll likely require several licenses to run your butchery. These include permits for Meat Processing, Trade Waste and Exotic Meats.
- Insurance: there are many insurance options for butcheries, so it’s a good idea to chat with a broker about your specific situation. However, some standard policies include Workers’ Compensation, Public Liability, Asset Insurance and Accident Insurance.
- Deforestation: it’s well-known that deforestation is necessary for livestock rearing. To avoid excessive deforestation, you could source sustainably farmed meats that have minimal or no impact on the environment.
- Food waste: since fresh meat has a limited shelf life, it’s a good idea to have processes in place to avoid waste. These processes could mean freezing, offering discounts or donating products to those in need.
- Animal cruelty: with the rise of veganism, animal cruelty has become an important topic in the meat industry. A solution is to source meat from ethical farms that care about their animals.
Conducting and Implementing Butchery Market Research
Keeping up with industry trends is an integral part of running a successful business.
Some places where you can find this information include:
- Australian Butchers Guild
- Meat & Livestock Australia
- Customer surveys
- Internal product trends
- Competitor analysis
Using these resources, you can ask questions like:
- Which meats are growing in popularity? (And which are falling.)
- What changes are my competitors making in their businesses?
- Are there any trends to be aware of? (Sustainable sourcing, free-range, grass-fed, etc.)
The answers to these and other questions will determine what you need to incorporate into your business and what you should remove.
Trends and Growth Outlook For Australian Butchers
Meat consumption has been relatively stable over the last decade, with slight beef and sheep demand reductions. Pork remains unchanged, with poultry demand growing slightly.
A key fact to note is that poultry consistently makes up the vast majority of consumption, double that of pork and beef, while sheep consumption is much less prevalent.
The Australian Government’s Job Outlook estimates stable job growth over the next five years, in line with meat consumption.
These trends suggest continued stability for Australian butcheries.
Facts About Australia’s Butchery Sector
Australia is well-known for producing high-quality meats. Here are a few things you should know about the sector:
- Queensland produces almost 50% of Australia’s beef and veal.
- Australia’s meat industry generates $50 billion in revenues each year.
- Poultry consumption makes up the vast majority of consumption per capita at 44.13 kg, while pork and beef are around 20kg and sheep just shy of 6kg.
Marketing Strategies For Butchers in Australia
To stay competitive in the butchery space, you must use effective marketing strategies.
Some of these strategies include:
- Partnering with well-known restaurants: by partnering with popular restaurants, you both receive extra exposure, and you will also pick up a trade customer who can stabilise your earnings.
- Create an informational app: there are many different several types and cuts of meat on the market. To help your customers, you can develop an app that provides cooking instructions, recipes, best practices and general information about the meat you offer. This strategy is an excellent customer retention strategy.
- Run a weekly promotion on social media: to drive sales, you could run a weekly promotion, such as a “Cut of the Week.” You can create a posting schedule for each day that shares different information about the cut—for example, the cut or animal’s history, cooking instructions, etc.
Financing Options For Expanding Your Butchery
Depending on your needs, there are a few different financing options for your Australian butchery:
- If you need new equipment but don’t want to fork out money from your savings, you could contact leasing agents like Benson Leasing.
- Need a loan to cover a new premise? Then you could consider a bank loan from institutions like NAB.
- If you want an alternative form of funding, you may be able to get assistance from associations like Meat & Livestock Australia or government grants.
What to Consider if You Want to Sell Your Butcher Shop
Common reasons for selling a butchery include:
- Transitioning to a new opportunity
- Enjoying the rewards of your labour
Whatever the reason, it’s vital that you prepare for it correctly. Without preparation, you’ll likely receive a poor offer as you haven’t optimised essential parts of the business.
Some aspects of your butchery to optimise include:
- Creating a differentiated brand from your competitors.
- Making sure your financial statements are healthy, and conduct a valuation of your business.
- Creating Standard Operating Procedures (SOPs).
- Ensure the business doesn’t rely on your name or image.
- Keep your equipment maintained so that it retains its value.
- Set up an email list and customer database.
Besides these factors, having many potential buyers is another way to maximise your sale. After all, demand pushes up value.