Almost two thirds of Australians are willing to dig deeper to offset flood-driven price hikes in the cost of fresh produce used in restaurants, according to new research just released.
The American Express Dining Insights Report, conducted by Galaxy Research, reveals Australians are prepared to pay an extra 3.3 percent on the price of a restaurant meal in the wake of flooding in Queensland and Victoria.
The national survey found 55 percent of people were prepared to pay a two percent increase, 39 percent a five percent increase and 11 percent willing to stomach a greater than five percent rise in prices.
American Express vice president merchant services, Geoff Begg, said it was heartening to see that most Australians aren’t prepared to let the increased cost of fresh produce become yet another hurdle to dining out.
“Rather than allow restaurateurs to become an indirect casualty of the floods, Australian diners have accepted they are going to have to pay a little more when they go out to eat,” Begg said.
“Restaurateurs have had a difficult few years and natural disasters like we have seen in the past few months could well be the final straw for many businesses.”
The floods have led many of Australia’s largest producers of fresh fruit and vegetables to cease production and have resulted in increased prices across the board.
Restaurant and Catering Australia chief executive officer John Hart said restaurateurs must keep a balance between keeping meals affordable in order to attract customers and dealing with “seemingly unrelenting” cost increases.
“This problem has been further exacerbated as fruit and vegetable wholesalers have been forced to increase prices,” Hart said.
“The input cost of fresh produce is predicted to rise between five and 15 percent. This has a profound effect on restaurants that are already having their margins squeezed.
“The value and the quality of meals will remain; it is just that prices will need to change to better-reflect the costs of preparing and serving restaurant food. It is reassuring to see that in the face of all this destruction, Australians are prepared to say ‘fair is fair’ and put their money where their mouth is.”
The American Express Dining Insights Research was conducted by Galaxy Research in February 2011. The survey was conducted among 1,007 Australians aged 18 years or older.
