Hungry Jack's founder Jack Cowin says consumers will have to pay more for products such as fast food, restaurant meals and hotel rooms if a long-running campaign to reduce weekend penalty rates fails.

Mr Cowin, the executive chairman of Hungry Jack's and chairman and major shareholder of Domino's Pizza Enterprises, says retailers may have to start charging a premium to recoup higher labour costs if weekend penalty rates are not reduced.

Hungry Jack's Brekky Muffins, Brekky Wraps and Aussie Burger will now use Australian-sourced cage-free, barn-laid eggs. Credit:Wayne Taylor

"If society says we're going to charge you a penalty to employ people during those hours then it's fair the business has to pass that on to the customer," Mr Cowin told Fairfax Media in an interview marking the opening of his 400th Hungry Jack's restaurant on Friday.

"It's not popular [cutting penalty rates] and one of the traditions in this country is how do you maintain people's living standards – when you try to take something away from them they don't like that," Mr Cowin said.