Domino’s Pizza adds 6 per cent delivery fee as cost of living crisis continues
The popular pizza chain has felt the crunch of cost of living pressures and has introduced a new surcharge that some might not be happy about.
Domino’s Pizza has become the latest fast food company to feel the pressure of Australia’s cost of living crisis.
On Monday, the popular pizza chain announced it had added in a 6 per cent delivery fee.
Domino’s insisted it was a “small fee”, with a $30 pizza order incurring an extra $1.80 for delivery as a result of 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) raised interest rates for the third month in a row to curb spending and inflation, which is at 5.1 per cent.
In a statement to news.com.au, a Domino’s spokesperson acknowledged there were external pressures which had left them little choice but to charge for deliveries.
“Our goal is to ensure Domino’s remains the home of great value. With so many feeling the pinch right now, that hasn’t changed,” they said.
“However, in order to continue to provide hot and fresh pizzas, delivered fast, at an affordable price, we have had to make some small changes including introducing a 6 per cent Delivery Service Fee to help us cover the rising cost of fuel, food and utilities, and ensure 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 local community members, cover the cost of operating a delivery business in the current environment and ensure Domino’s remains the most efficient and sustainable food delivery business in the country.”
The company insisted it was “transparent” about its pricing, having warned customers on its website.
Domino’s isn’t the first fast food chain to pass rising costs onto its customers.
Last months, consumers in NSW, Victoria, Queensland, the ACT and Tasmania were outraged when they learnt KFC was putting cabbage in their burgers.
KFC advised that they may have a “temporary blend” 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 some lettuce supply chain disruptions,” KFC said on its website.
“We’re working with our multiple suppliers to provide them with support, but we do expect 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 ASAP.”
Faithful customers questioned the move, 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 per cent compared to last year.
The biggest quarterly increases were reflected in fuel, which was at 11 per cent, while grocery food products increasing by four per cent.
On Tuesday, the RBA announced its third consecutive interest rate rise, increasing rates by 50 basis points, taking them from 0.85 per cent to 1.35 per cent.
Economists have predicted that interest rates and cost of living will keep rising every month until January.
Two of Australia’s biggest supermarkets are likely to implement sweeping price increases in just weeks.
Coles and Woolworths will be pushed to increase prices in response to requests from suppliers, news.com.au reported earlier this week.
Under negotiation processes, supermarkets have a 30-day window to review price rise requests, with Woolworths also implementing a policy which seeks a 10 to 12 week “notice of a nominated effective date for a price increase”.
Recently, Coles chief executive Steven Cain said the company had received “five times as many requests for price increases as we had last year”. He credited the requests on factors such as the labour crisis, the cost of raw materials, and the rising cost of fuel and utilities.
As a result Coles reported an inflation of 3.3 per cent across prices, over the third quarter, with Woolworths reporting a figure of 2.7 per cent.
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