The popular pizza chain has felt the pressure of the cost of living and has introduced a new surcharge that some may not be happy about.
Domino’s Pizza is the latest fast food company feeling the pressure of Australia’s cost of living crisis.
On Monday, the popular pizza chain quietly added a 6 percent delivery charge.
Domino’s insisted it was a “small fee,” with a $30 pizza order and an additional $1.80 delivery due to the change.
The food giant cited rising costs as the reason for the change, particularly fuel, food and utilities.
It comes just a day after the Reserve Bank of Australia (RBA) raised interest rates for the third straight month to curb spending and inflation, which stands at 5.1 percent.
In a statement to news.com.au, a Domino’s spokesperson acknowledged that outside pressures had left them with little choice but to charge for shipping.
“Our goal is to ensure that Domino’s remains the home of great value. With so many now feeling the pinch, that hasn’t changed,” they said.
“However, in order to continue to deliver hot and fresh pizza, delivered quickly and at an affordable price, we have had to make some minor changes, including the introduction of a 6 percent delivery service surcharge to help us meet the rising costs of fuel, food, and food, and utilities, and to ensure that we can continue to train and retain our team members.
“This small fee helps 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 to ensure Domino’s gets the most efficient and sustainable food delivery business in the country. †
The company insisted it was “transparent” about its pricing and had warned 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, the ACT and Tasmania were outraged to learn that KFC was putting cabbage in their burgers.
KFC advised they may have a “temporary mix” of lettuce and cabbage in their meals to make up for the lettuce deficiency.
“We have hit an iceberg and are currently experiencing some disruptions in the lettuce supply chain,” KFC said on its website.
“We are working with our multiple suppliers to provide support, but we expect the disruptions to continue in the coming days.
“Apologies for any inconvenience. We appreciate you all being Little Gems as we work to get things back to normal as soon as possible.”
Loyal customers are questioning the move, with one admitting that they should “rethink my entire meal.”
According to data released for the March quarter, inflation in Australia is 5.1 percent higher than last year.
The largest quarterly increases were reflected in fuel, which was 11 percent, while food-grade increases were four percent.
On Tuesdays the RBA announced its third consecutive rate hike† to raise interest 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 through January.
Two of Australia’s largest supermarkets are likely to implement sweeping price hikes within weeks.
Coles and Woolworths will be forced to increase prices in response to requests from suppliers, news.com.au reported earlier this week†
During negotiation processes, supermarkets have a 30-day period to review price increase requests, with Woolworths also implementing a policy that seeks “notification of a nominated effective date for a price increase of 10 to 12 weeks”.
Recently, Coles CEO Steven Cain said the company had received “five times as many requests for price increases as last year”. He credited the requests on factors such as the labor crisis, the cost of raw materials and the rising cost of fuel and utilities.
As a result, Coles reported 3.3 percent price inflation for the third quarter, while Woolworths reported 2.7 percent.
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