The famous pizza chain has felt the tightening cost of living pressures and has introduced a new surcharge that some may not be happy with.
Domino’s Pizza has become the latest fast food company to feel the pressure of Australia’s cost of living crisis.
On Monday, the famous pizza chain announced that it had added a 6% delivery charge.
Domino’s insisted it was a “small charge”, with a $30 pizza order incurring an additional $1.80 for delivery following the change.
The food giant cited rising expenses as the reason for the change, particularly fuel, food and utilities.
It comes just a day before the Reserve Bank of Australia (RBA) raises interest rates for the third consecutive month to rein in spending and inflation, which is at 5.1%.
In a statement to news.com.au, a spokesperson for Domino’s acknowledged there were outside pressures that left them with no choice but to charge for deliveries.
“Our goal is to ensure that Domino’s remains the home of high value. With so many people feeling the pinch right now, that hasn’t changed,” they said.
“However, in order to continue to provide hot and fresh pizza, delivered quickly, at an affordable price, we have had to make a few small changes, including the introduction of a 6% delivery service charge to help us cover the increased cost of fuel, food and utilities, and ensuring that we can continue to train and retain our team members.
“This small fee will help our local Domino’s stores, many of which are owned and operated by members of the local community, to cover the cost of running a delivery business in the current environment and ensure that Domino’s remains the most efficient and sustainable food delivery company in the country. .”
The company insisted it was “transparent” about its pricing, after warning customers on its website.
Domino’s isn’t the first fast-food chain to pass on rising costs to its customers.
In recent months consumers in NSW, Victoria, Queensland, ACT and Tasmania were outraged when they learned that KFC was putting cabbage in their burgers.
KFC said they may have a “temporary mix” of lettuce and cabbage in their meals to make up for the lettuce shortage.
“We’ve hit a bit of an iceberg and are currently experiencing lettuce supply chain disruptions,” KFC said on its website.
“We are working with our multiple providers to provide them with support, but we expect the disruptions to continue in the coming days.
“Apologies for any inconvenience caused. We appreciate you all being little gems as we work to get things back to normal as soon as possible.
Loyal customers questioned the decision, with one admitting they would have to ‘rethink my whole meal’.
According to data released for the March quarter, Australia’s inflation rate is up 5.1% from a year ago.
The largest quarterly increases were reflected in fuel, which was up 11%, while groceries grew 4%.
On Tuesday, the RBA announced its third consecutive interest rate hike, increasing rates by 50 basis points, from 0.85 percent to 1.35 percent.
Economists have predicted that interest rates and the cost of living will continue to rise each month until January.
Two of Australia’s biggest supermarkets are set to implement sweeping price increases in just weeks.
Coles and Woolworths will be pressured to raise prices in response to supplier demands, news.com.au reported earlier this week.
As part of the negotiation processes, supermarkets have a 30-day window to consider requests for price increases, with Woolworths also implementing a policy that calls for “10 to 12 weeks’ notice of an effective date nominated for a price increase”.
Recently, Coles chief executive Steven Cain said the company received “five times more requests for price increases than last year.” He attributed the demands to factors including the labor crisis, the cost of raw materials and the rising cost of fuel and utilities.
As a result, Coles reported inflation of 3.3% across the board in the third quarter, while Woolworths reported a figure of 2.7%.