Fight against shrinkflation: More than half of Aussies would pay more to get more

Aussies are looking to fight back against shrinkflation, with more than half saying they would be willing to pay more to get more at cafes and restaurants.

Rising costs in hospitality are causing small businesses to either increase costs to cover for products getting more expensive, or shrink portion sizes so they spend less.

However, there are times where product or serving sizes will decrease but prices remain the same, which is referred to as "shrinkflation".

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In a money.com.au survey of 1000 Aussies last month, 56 per cent said they would prefer to pay more when dining out at cafes and restaurants, if it means they don't get less on their plates.

Nearly a quarter – 23 per cent – believe restaurants should absorb rising costs or cut costs in other areas of the business, rather than selling customers short.

Experts say as shrinkflation becomes more common, Aussies are becoming more perceptive of when it occurs.

"Shrinkflation can feel like businesses are trying to hoodwink customers and hope people won't notice they're getting only one piece of bacon instead of two with their eggs on toast for the same price they've always paid," money.com.au's Sean Callery said.

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He said people have become accustomed to it in supermarkets, but claims the situation in cafes and restaurants is different.

"In a café or restaurant, it's more of a leap of faith when you order that the portion size will be reasonable for the price and consistent," he said.

The survey found older Australians, Baby Boomers and Gen X, would be more willing to pay more to get more, but only 45 per cent of Gen Z surveyed held this view.

Gen Z also expect businesses to do more to absorb costs and not pass them on to the customer, potentially reflecting that they have less spending power than other generations.

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However, the cafe and restaurant industry argue they are in a lose-lose situation, being unable to absorb costs anymore.

CEO of the Australian Restaurant and Café Association (ARCA) Wes Lambert claimed portion sizes across the industry had remained consistent, but admitted some price rises had to be as high as 10 per cent.

"People would quickly notice if they were no longer satisfied, so reducing portion sizes is much harder to get away with," he added.

"It's very difficult to 'shrinkflate' in hospitality because portion sizes are often fixed by the vessel. A pint is a pint, a schooner is a schooner."

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