Is the QSR industry in danger of being hit by fat tax?

A new three-year study hopes to finally find out.

Alarmed by the rising burden of obesity on the Australian economy, a research team based at Griffith University wants to know whether a fast food tax will be an effective and publicly embraced strategy to prevent obesity. 

“This study will provide valuable information on what regulatory tools are acceptable to the general public and how much influence price has on purchasing decisions,” said health economist and research project leader Dr. Tracy Comans.

The research project was funded by the Australian National Preventative Health Agency, but Comans assured that her team developed the research question without influence from the government.

In explaining the value of their research, Comans suggested that regulatory tools are essential for Australia to curb obesity, but there is no convincing data to indicate that a fast food tax will be that magic bullet despite the insistence of health policy advocates.

“Regulation would have an impact but how much is not known,” Comans said, noting how price regulation has drastically curbed smoking.

“Regulation has caused smoking rates in Australia to decline from a high of over 70% of men smoking to just over 16%. Of course this encompassed advertising restrictions and accessibility as well, however most research indicates that price was the biggest factor in reducing smoking rates,” said Comans.

Comans hopes that her team’s research will uncover a pricing strategy – not necessarily the fast food tax being proposed these days – that will convince Australian parents to start shopping for healthier food which will in turn train their kids to consume more nutritious food.

“We are looking at pricing strategies that will encourage parents of young children to choose healthier options for their families so that obesity does not take hold.”

“We know that food preferences are set early - often before age three. In under fives, there is no room for sugar sweetened drinks, highly processed snack foods, processed meats and take away foods. These should not be consumed at all by this age group.”
 

Read the full Q&A here.