Fuel surcharge may trim fast-food spending
Pressure on petrol costs tests pricing tactics across Australia’s dining sector.
A fuel surcharge floated by cafés and restaurants to offset petrol costs may curb how much customers spend per visit rather than keep them away if similar fees reach fast‑food outlets, an analyst said.
“The most immediate impact would be basket compression,” Anuran Dhar, practice head for foodservice, wisdom sectors, and agribusiness at GlobalData Plc, told QSR Media. “Customers would still purchase, but they cut back on add-ons or might trade down to entry-level menu items or deals.”
The Australian Restaurant and Cafe Association in March urged businesses to consider a fuel surcharge of as much as 5%, arguing that higher transport costs were adding to strains already facing hospitality operators. Australian Consumer Law allows surcharges if clearly disclosed before purchase.
Tolerance may be thinner in fast-food, where customers expect simple, all‑in pricing, Dhar said. “A temporary surcharge is generally acceptable provided it is clearly structured and transparent to the customer,” he said in an emailed reply to questions. Time‑bound fees that are regularly reviewed gain broader acceptance, he added.
Problems arise when charges feel open‑ended or arrive as a surprise, especially on delivery orders. Even when diners accept a fee, behaviour shifts often follow through cheaper menu picks. The response matters for chains built around high‑volume, low‑margin sales.
Brands that adopt a surcharge on their own risk putting themselves at a disadvantage, particularly in Australia, where higher fuel costs have yet to feed through broadly into consumer prices, Michael Sainty‑Cope, senior director at Simon‑Kucher & Partners Strategy & Marketing Consultants Pty Ltd., told QSR Media.
“It’s all about relativity,” he said in an emailed reply to questions. “If surcharges were common in broader consumer categories, then likely, QSR customers would also accept them.”
Some operators are opting out. Chatime Australia Pty. Ltd. is not weighing fuel surcharges, Alison Walsh, chief marketing officer at Chatime, told QSR Media.
“It’s not something that we are even talking about,” she said via Zoom. “We’re closely watching what the government does, but we’re not looking to pass on surcharges to our customers.”
Wider spending signals remain soft. GlobalData’s consumer survey for the fourth quarter of 2025 showed 52% of Australians were extremely or quite worried about their personal finances, a share Dhar expects to rise amid war in the Middle East..
A National Australia Bank Ltd. report in March showed discretionary spending weakening further in the first quarter. The share of consumers eating out less rose to 60% from 48% a year earlier, whilst cutbacks on food delivery climbed to 42% from 33%. Fewer people were buying small treats such as coffee and snacks.
Competitive effects will hinge on visibility. Large fast‑food chains may absorb some costs or reprice selected items quietly, though repeated increases can trigger backlash if customers notice.
Smaller and independent operators, facing tighter margins, may find a surcharge easier to justify and meet less resistance from local regulars.
“Whilst smaller players might adopt a surcharge to offset cost pressure, the risk of public reputation for the big brands may outweigh its benefits, as they may see this as an opportunity to reset their price and promotion go-to-market strategy,” Sainty-Cope said.
Dhar said operators seeking to protect traffic should keep value clear and recover costs through simpler steps than a blanket fee.
Options include careful pricing on less sensitive items, protecting entry‑level prices, and offering bundles to lift order size.
Operational moves—better staff scheduling, waste reduction, a simpler menu, and supplier talks—can also help. If a surcharge proves unavoidable, he said, it should stay small, transparent, and temporary.
QSRs could also protect their topline growth by attracting full-service restaurant customers who will be trading down. Sainty-Cope suggests revisiting current menu offerings to better reflect value for budget-conscious customers.
“[They should] know where they will take price, and what cost they can reduce by simplifying a bloated menu,” Sainty-Cope said.
Brands should prepare action plans in advance to take advantage of periods when consumer prices are in flux, allowing them to protect margins in the short term without resorting to more visible price increases during relatively stable conditions.
Sainty-Cope added that the current environment also presents a rare opportunity for operators to revisit their pricing and promotional strategies, enabling structural changes that would previously have taken years to implement and positioning businesses for longer-term growth.
