Australian QSR brands face rising costs and inflation pressures

Australian quick-service restaurant (QSR) operators are facing significant financial pressure as various operating costs rise faster than inflation. According to Restaurant and Catering Australia, award wages are projected to rise 4.75% from July, while electricity costs have increased by more than 25% year on year.

Josh Ludski, Head of Strategic Investments at River Capital, notes that labor and rent—particularly in shopping centers with 4% to 5% rental escalations—remain primary concerns. Additionally, delivery platforms are charging commissions of up to 30%, further squeezing margins while consumers spend more cautiously.

To achieve sustainable growth, industry experts suggest that brands must focus on driving transaction growth through inventive methods. For example, The Cheesecake Shop has utilized smaller, lower-priced items to drive customer acquisition and re-engage consumers with their core product range.