Frankston City experiencing a boom in new businesses
Published on 05 September 2025
With the Reserve Bank of Australia (RBA) taking several measures to stimulate the economy in recent years, Frankston City has seen positive activity at a local level, with a robust 639 new businesses registering for GST in the last 12 months.
Investor confidence in Frankston City can be seen across the full spectrum, from a resurgence of fledgling start-ups to established national franchise chains, to sizeable private investments in commercial and industrial precincts. News of multiple multi-million dollar private-sector housing developments in the city centre has undoubtedly prompted a renewal of interest amongst businesses, with 770 new apartments due to add huge uplift to the local customer base.
The Sporting Globe is the latest big name to join Frankston’s Wells Street hospitality offerings alongside TGI Fridays, San Churro, YOMG, Martini & Co, and Grill’d. Other recent and imminent major brands include Moon Dog Beach Club, Starbucks, Planet Fitness, Fukutontei Ramen, 105 Deg Korean BBQ, Benny’s Smokehouse and two new Guzman Y Gomez branches amongst others.
Meanwhile smaller players are following suit, with local entrepreneurs capitalising on the momentum of change. Locally owned start-ups Blak Fig and Project One cafes have spotted the opportunities on the rapidly evolving Nepean Highway. Around the corner, at the Playne and Young Street intersection, boutique enterprises such as Commonfolk café, Self Made Salon Studios, George & Matilda Eyecare and Minty Greenhouse are bringing some style and class to a formerly underutilised space.
Frankston City Mayor Kris Bolam JP says: “It’s incredibly gratifying, but not entirely surprising that Frankston City is experiencing an unprecedented resurgence of investor confidence, which is translating into some rapid-fire business openings this year. The drivers of growth are obvious. Huge Federal and State government investment in new infrastructure such as the new hospital development, Chisholm TAFE, commuter car parks and the Frankston Stadium; Council’s endorsed FMAC Structure Plan and secured funding for a revitalised Nepean Highway; an insurmountable $506 million in private property development; a booming local real estate market; Council’s bigger and better major events program enticing visitors from far and wide. All eyes are on Frankston City, and this is only set to continue.”
Frankston City’s annual Gross Regional Product (GRP) is now at $9.6 billion, steadily increasing from $7 billion in 2020.
The top industries, or those with the highest economic value, are:
- Healthcare and social assistance: $1.37 billion
- Rental, hiring and real estate services: $1.37 billion
- Construction: $1.06 billion
- Manufacturing: $580 million
- Electricity, gas, water, and waste services: $550 million
- Education and training: $511 million
- Retail: $502 million
Mayor Bolam added, “From our humble origins as a coastal town, we are now a State-government-designated vital Metropolitan Activity Centre, something of the highest order, signifying an area slated for transformative growth.
“In addition to the $500+ million worth of approved projects that will deliver 770 apartments in the next two to three years, Frankston City Council is currently reviewing a significant pipeline of further applications for mixed-use developments at key city centre sites.
“Commercial development is also gathering momentum throughout the suburbs. Karingal’s revitalisation is being accelerated with a $5 million redevelopment at Karingal Village and the recent $160 million Karingal Hub redevelopment, whilst a 6.65 hectare site purchased for $19 million now has an end value of $86 million for the revitalised industrial precinct Compass Business Park.
“Meanwhile Frankston City’s real estate market is booming, with record sales prices throughout the suburbs and independent research from PropTrack and Hotspotting.com.au attributing Frankston City real estate as the key driver behind both Melbourne’s property sector resilience and growth and the State Government’s housing targets.”
New businesses are also excited to be part of Frankston’s City’s growth.
Moon Dog Beach Club at 490 Nepean Highway opened in December. Co-owners Josh, Jake and Karl say: “Frankston is now our fifth location, and we have been really embraced by the local community. We chose Frankston for its strong community base and steady flow of visitors year-round. It acts as a central hub for the South-East, catering to many of the neighbouring areas because of its large established retail and hospitality scene. Development and ongoing investment are happening all around us, and we are one of several businesses to have capitalised on this prime location in the last 12 months.”
Charles Sedgley, co-owner of Hotel Lona, Nepean Highway, Frankston (Frankston Business Collective ‘Business of the Year’) says: “We love being in Frankston. We launched Hotel Lona about two and a half years ago and have already helped attract a number of other venues to Frankston. I've seen some of the plans of what Frankston City Council wants to do about revamping the Nepean Highway, and it looks fantastic. So, if we can get that happening, I think it could help Frankston City become not just the “gateway” to the Peninsula, but the destination!”
To discuss investment opportunities, vacant commercial opportunities, relocating or opening a business in Frankston City, please contact business@frankston.vic.gov.au.