Public holiday surcharge

[kyle]

Went to my local Groove Train a few days ago and noticed that they have put a "15% surcharge on public holidays sticker" on the menu.

I would have thought that such a practice would be unpopular due to the competitive nature of the industry.

What are people's views on this? Will you avoid such a restaurant on public holidays, or even frequent less on the other days due to this practice?

I certainly won't go to such a restaurant if I have advance warning of this unless I couldn't avoid it if travelling as a tourist.

 

[basso]

Seems steep. But expect more, given ACL changes that make this practice legal.

 

[opusman]

I thought that was actually illegal - if a restaurant wants to charge more on a public holiday they actually need to print a separate menu with the higher prices on it, just sticking a "15% surcharge on X,Y,Z" blurb on it isn't enough.

 

[Daver6]

I thought that was actually illegal - if a restaurant wants to charge more on a public holiday they actually need to print a separate menu with the higher prices on it, just sticking a "15% surcharge on X,Y,Z" blurb on it isn't enough.

This is my understanding too (unless the law has changed in the last 12 months).

Having a sticker or small print noting a surcharge is illegal. Either two prices need to be displayed on the menu for each item or a separate menu needs to be provide on those days that incur the surcharge.

You are well within your rights to refuse to pay the surcharge if there is just the little sticker/note about a percentage surcharge.

 

[Simo]

IMHO,

I hate the surcharge mainly due to the fact that generally the owner is profiting extra and the staff are not getting that much more.

The legality of it I have no idea about!!!

 

[basso]

I'll say it again. Due to recent changes to the ACL this is legal. If you want help in understanding the law, try this: Changes to surcharge displays for restaurant and cafés | Dynamic Business

 

[ChrisFlyer]

If it's Christmas Day and I really want to go somewhere, then I can completely understand the surcharge (particularly if staff are being paid 2.5-3x normal rates).

In that light, I can understand why some restaurants or attractions may need a temporary price change (via a surcharge) in order to stay profitable on such trading days, though others certainly don't need the extra margin – and many places won't surcharge.

Personally, if I want to go somewhere on Christmas (say, out for a nice coffee), then I'm happy to pay the surcharge. On other public holidays, I'll usually try to avoid going out unless unavoidable.

What does annoy me are places that have surcharges for non-holidays, which includes things like a 'Mother's Day surcharge' or a 'Valentine's Day surcharge'... there's no increased labour cost to the business when trading on these days (yes, they may have more staff on hand, but that is in response to increased patronage, which is generating increased revenue to cover the labour expenditure)... in that case, it's pure profiteering!

 

[amaroo]

Penalty rates are expensive.....someone has to pay!

Plenty of places here don't trade on PH due to the fact they can't make a $ after paying wages and acting as the local ATO collector. Penalty rates put Noosa on knees, says Chamber chief | Sunshine Coast Daily

 

[Hvr]

Penalty rates are expensive.....someone has to pay!

Plenty of places here not trade on PH due to the fact they can't make a $ after paying wages and acting as the local ATO collector. Penalty rates put Noosa on knees, says Chamber chief | Sunshine Coast Daily

And when these businesses can't make money paying penalty rates what will they cut next? All of them have commenced business since penalty rates were introduced so either they didn't learn about the business they were entering or they are incompetent managers, or more likely both.

 

[Mwenenzi]

Penalty rates are expensive.....someone has to pay!

And that is just for weekends. Public holidays are more again. If the extra cost for your meal is equal to the extra wages (plus the regulatory add on's) is another matter

And when these businesses can't make money paying penalty rates what will they cut next?.

They will cut opening, so those "employees" will have no income. The small business that are family owned (and run) do no pay these rates to themselves

 

[basso]

And when these businesses can't make money paying penalty rates what will they cut next? All of them have commenced business since penalty rates were introduced so either they didn't learn about the business they were entering or they are incompetent managers, or more likely both.

...and you're credentials for running an F+B business is exactly what? The rules on the surcharges for restaurants were relaxed to help reduce some of the red tape associated with running a business. I hope there is more red tape reduction going on.

 

[Mwenenzi]

duplicate post

 

[amaroo]

And when these businesses can't make money paying penalty rates what will they cut next?

Cut their trading hours or cut the number of hours worked by employees - simple as that!

The business operator cuts his losses - the employee gets less or nothing.

I like small business operators and try to direct my spend towards them.....things like F/V, bakery, butchers, Fish traders, bottle shops, etc I've noticed a huge number of these owner operators working longer hours, 7 days a week......weekends they've reduced the employees hours and filled the gap themselves. All of them want to hire young people however, the reality of running a business in Australia is struggling to support it.

It's a sad situation where uni students, casual workers, school kids, etc want to work however the economics just isn't there

of them have commenced business since penalty rates were introduced so either they didn't learn about the business they were entering or they are incompetent managers, or more likely both.

Pretty harsh view of what is the backbone of employment in the Country.

This thread is about surcharges and the legality/need for it. Penalty rates are top of the list when it comes to the topic in question.

 

[blackcat20]

This is my understanding too (unless the law has changed in the last 12 months).

Having a sticker or small print noting a surcharge is illegal. Either two prices need to be displayed on the menu for each item or a separate menu needs to be provide on those days that incur the surcharge.

You are well within your rights to refuse to pay the surcharge if there is just the little sticker/note about a percentage surcharge.

Exacty this. It's illegal to have a note about a surcharge, they are required to have a separate menu for public holidays/Sundays. You can report them.

 

[Fruitcake]

Exacty this. It's illegal to have a note about a surcharge, they are required to have a separate menu for public holidays/Sundays. You can report them.

It is not illegal. As basso has already posted twice, the law has changed.

Competition and Consumer Amendment Regulation 2013 (No. 3)

80A Single price does not apply to surcharges on food or beverage in restaurants
(1) This regulation is made for paragraphs 48(4A)(a) and (b) of the Australian Consumer Law.
Class of representations
(2) A class of representations is representations that:
(a) are made on the menu of a restaurant; and
(b) refer to the imposition of a surcharge on the consideration for the supply of food or beverage by the restaurant on a specified day or days.
(3) Subregulation (2) applies whether or not the menu:
(a) identifies the food or beverage; and
(b) displays the consideration for the supply of food or beverage.
Conditions in relation to a representation in the class
(4) The representation must include the words “a surcharge of [percentage] applies on [the specified day or days]”.
(5) The representation must be transparent.
(6) The representation must be displayed at least as prominently as the most prominent display on the menu of the following:
(a) the consideration for the supply of food or beverage;
(b) a fee or surcharge relating to the supply of food or beverage.
(7) However, if the menu does not display the consideration for the supply of food or beverage, and does not display any other fee or surcharge relating to the supply of food or beverage, the representation must be displayed in a way that is conspicuous and visible to a reader.
(8) In this regulation:
restaurant:
(a) means a business, service or arrangement:
(i) in which food or beverage is sold to customers; and
(ii) of a kind commonly known as a restaurant, cafe, bistro or any similar term; and
(b) does not include a business, service or arrangement by which food or beverage is provided or delivered to customers in the expectation of consumption at a later time; and
(c) does not include a business, service or arrangement for the delivery of groceries.
Example 1: Other examples for paragraph (a) are:
(a) a shop selling takeaway food; and
(b) a business that supplies food, ordered for immediate consumption, by home delivery only.
Example 2: An example for paragraph (b) is a business that delivers prepared meals as part of a diet or health program.
Example 3: An example for paragraph (c) is the home delivery service of a supermarket.

 

[blackcat20]

It is not illegal. As basso has already posted twice, the law has changed.

Competition and Consumer Amendment Regulation 2013 (No. 3)

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Sorry, I must be behind. Stopped reading when the race started
A big song and dance was made when it came in, but heard nothing when it went the other way. It's still poor practice though...

 

[Simo]

In my industry we have a penalty rate for Weekends.

We don't charge any more it just means as the owner I work more of them

 

[Fruitcake]

Sorry, I must be behind. Stopped reading when the race started

And for similar reasons my post reads a bit more harshly than I intended .

I can see both sides of the argument on this but personally as long as it's clearly disclosed I don't have a problem with it. The only practical outcome of the change is that compliance costs have been lowered - restaurants were quite free to charge different prices on different days prior to July, just that they had to go to the expense of printing up an extra set of menus to do so.

Perhaps the counterpoint to that is "lowering the cost just encourages them to do it" but I personally don't have too many dramas adding 15% to a number; I'd rather not have the cost of two sets of menus embedded in my food to compensate those who can't.


Interestingly I'm fairly sure that I can recall the tariff notice in some Sydney taxis stating that that tariff 2 (ie late night) is "tariff 1 + 20%".

 

[Flying Fox]

I thought that was actually illegal - if a restaurant wants to charge more on a public holiday they actually need to print a separate menu with the higher prices on it, just sticking a "15% surcharge on X,Y,Z" blurb on it isn't enough.

Geepers, Chinese Restaurants have been doing this for years!!!!

Mostly a line liner in the menu saying Public Holidays = 10% surcharge.

I'll say it again. Due to recent changes to the ACL this is legal. If you want help in understanding the law, try this: Changes to surcharge displays for restaurant and cafés | Dynamic Business

Can't believe that this is only NOW legal. I've be paying the surcharge for years and years!!!

 

[blackcat20]

Can't believe that this is only NOW legal. I've be paying the surcharge for years and years!!!

I think it's come and gone, not that long ago.