Public Holiday Surcharge Yeh or Nah

These surcharges are fairly common at local cafe's and restaurants however what thing i have started to ask the staff is 'do they get paid more money' to my surprise a few of the staff have said no they actually are getting the same rate….and thus has me questioning the surcharge and why would i have to pay more if the staff are not being paid more.

now i am a believer of the free market restaurants can 'charge what they want' that doesn't mean people will it and if a establishment wants to put on a Surcharge they can as long as it is clearly disclosed before ordering.

my question is how do people here feel about surcharges and should it be more found upon if the staff are getting no benefit or is that just a free market….

Poll Options

  • 12
    I'm happy to pay PH surcharge
  • 240
    I'm against surcharges on PH of any kind
  • 540
    I'm happy to pay only if the staff are paid more

Comments

  • +27

    For establishments which exist for the purpose of leisure, I think pricing should be oriented around providing service on days of leisure (weekends/holidays). Therefore, I think there should be no surcharge on weekends and holidays. I support staff being paid more on weekends/holidays, but pricing should be set to support this.

    • +4

      Exactly when you consider their revenue would likely be much higher on these days.

      • +5

        Revenue would be higher, but so would their costs, hence the surcharge.

        Either way, your paying more and this is arguably fairer than slugging regular patrons with an increase who avoid these places on days when a surcharge is in place.

        • +2

          They would have higher costs but they have the higher revenue to make up for that.
          Adding an extra surcharge just helps the business improve their margins.

          • -5

            @Ozbfan: In service based industries the possible increased revenue cannot possibly make up for the 2X to 2.5x wages bill for the day.

            • @p3nf0ld: Say if wages are 25% of revenue, a doubling of revenue would still mean the restaurant is way ahead. Depends on the restaurant but a lot of the place I’ve gone to on P/H’s are packed to the brim (likely because lots of other restaurants are closed) compared to say 10am on a normal Thursday may be mostly empty.

              • -3

                @Ozbfan: Most cafes and hospitality businesses have wage to income ratios of ~50%

        • Slugging regular patrons?

          What are we talking about here? Typically I've seen a surcharge of 15% on public holidays.

          So my $30 meal on a public holiday turns into $34.50. That extra $4.50 spread over the same meal served on the 353 days that aren't public holidays is just over 1 cent per customer. So slugged.

    • -1

      Great comment

    • +5

      I find it ridiculously to have holiday surcharge for public holidays as i would expect higher traffic flow of customers on these holidays. Owner should be making more than the usual weekdays crowds unless the establishment is crap.

    • Furthermore many establishments make most of their money on weekends and public holidays
      The substantial increase in business should be enough to offset the higher wages.

      So we currently have surcharges for public holidays and for Sundays as well and for paying by card which is convenient for everyone and certainly saves the businesses huge amounts money due to much higher efficiencies!

      • -1

        The efficiency isn't on the floor on a Sunday in a cafe, you save 30 minutes not balancing the till, but taking cash from people isn't that much slower than going 100% cashless (and demanding no split payments).

        Paying staff 2.5x the amount you would on your best weekday is very significant. Plus if the place is swamped you need more staff than a usual day. It is a fine balance, but operators aren't making crazy profits from a Sunday, without a surcharge probably underwater for most.

  • +31

    I refuse to pay surcharge. They have had a whole year to factor in the additional public holiday costs..

    • +18

      Same.. run your business financially well to include planning ALL wages, including holidays, averaged out over a tax year or quit. its not like the costs take you by surprise/ Look at dominos. 15% to 20% extra for their JUNK.. PASS

    • +5

      I am the opposite, much prefer a surcharge, business that overcharge on non holidays I won't visit. Why should I have to pay a premium on non public holidays just to support the lifestyles of those that insist on going out on a public holiday.

      • I guess the thinking is it may only raise prices by such a small amount, as they still have to compete with other businesses who may close on p/h’s, meaning the market will end up absorbing the cost.

        • Sure, but i much prefer user pays.

      • +1

        I am the opposite, much prefer a surcharge, business that overcharge on holidays I won't visit. Why should I have to pay a premium on public holidays just to support the lifestyles of those that insist on staying-home on a public holiday.

      • +2

        How do you know which businesses overcharge on non holidays when they spread 12 PH surcharges over the other 353 days of the year? We're talking about a few cents per meal.

        You wouldn't have a clue. Unless you check the menu and it says "15% surcharge on public holidays".

        If it doesn't say that, do you leave? Do you honestly check with every business that you deal with, "Excuse me but do you charge extra on public holidays, because I need to be sure that I'm not paying a premium today"?

        Of course you don't.

  • +9

    business get more customers, so they should be able to pay the staffs more.
    if not then next PH dont open…..

    • +6

      Exactly, closing on public holidays is a perfectly valid option. Give the staff a day off so they can enjoy their public holiday.

      • +1

        Not all places can just close. Especially places that are in shopping centres. They have set agreement in their lease that they must open during certain hours including public holidays with the shopping centre

        • -6

          Well they should call the police.

          • @AustriaBargain: Save the phone calls for emergencies.. better to visit them in person.

            • -1

              @elgrande: If someone held a gun to these restaurant owner's heads and made them sign that food court lease then the police should definitely be involved.

  • +4

    I don't like it, but it's so common now that I don't even think about it on public holidays anymore. If there isn't a surcharge, then 'bonus'!

    Now.. about those tips.. I wonder how many restaurants don't pass on tips to their staff - especially those that are written on the credit card slip or entered into the machine at the time of payment.

    • I wonder if you could figure it out by gauging how genuine their smile seems when you offer a tip? If they legit seem happy, then they probably get to keep it.
      But yeah, I've heard a lot of businesses don't pass it on or only give out a small percentage.

      • +1

        I hear lots of people tip in cash thinking there's more chance that the waiters/waitresses get it. Not sure whether it works like that!

        • -4

          I hear lots of people tip in cash thinking there's more chance that the waiters/waitresses get it. Not sure whether it works like that!

          as a former pan cake palor waiter i can say i pocketed anyone nice enough to tip me cash but the Pancake palor didnt pay any extra for nights or saturdays i didnt last long enough to know if they paid more on PH [i quit after 2 weeks]

          i personally dont mind tipping culture in the states - food is usually cheaper in establishments and when you tip there is a fair by of animosity to match the services you got which i thought was better but i know im in the minority

          • +1

            @Trying2SaveABuck: Surprised you can't spell the name of the company right considering you used to work there lmao.

            Pretty sure I heard Pancake Parlour underpaid their staff.

            • +2

              @Ghost47: lol gamma correction noted

              literally worked 2 weeks i couldnt believe how hard they expected you to work, whilst expecting you to work to 3am without paying you extra for night shift.

              i always assumed nights paid more but 'Pancake Parlour' had no such thing - when i found that out i quit instantly

          • +2

            @Trying2SaveABuck: I used to go to the Highpoint one and all waiters and waitresses were really young and would run around like crazy. I felt bad for them because they looked so stressed! (I was in my early 20s back then too and I still thought they were young!). A $5-$10 tip would always put a huge smile on their faces!

            • +1

              @bobbified: you're one of the good ones.

              Highpoint was the one i was at management was bad [however i did work there 10 years ago so it might of changed] but when i have gone back to PP i have tipped my server a few bucks as well i know how bad they have it

              • @Trying2SaveABuck: I just couldn't imagine what it'd feel like to be running around all day long like that.

          • +6

            @Trying2SaveABuck:

            animosity

            That Word! I do not think it means what you think it means.

          • -1

            @Trying2SaveABuck:

            i personally dont mind tipping culture in the states - food is usually cheaper in establishments and when you tip there is a fair by of animosity to match the services you got which i thought was better but i know im in the minority

            I was there recently. Tipping at restaurants/bars is tolerable - although I don't prefer it and I'm not sure I agree food was any cheaper. With the inflation + shitty exchange rate it felt similar to here if not more.

            Restaurant tipping is easy because it's basically standardised, you know to expect it and the service is practically always exceptional. Service here can quite often by abysmal.

            However, the tipping culture isn't limited to bars and restaurants. Your cab driver, the bell boy, tour guide, housekeeping at hotels, even the dealers at casinos.

            It's god damn everyone - and it's not always clear how much and when. And whilst at a restaurant you can argue it encourages good service, it doesn't translate to other industries.

            • +2

              @Harold Halfprice: I found that the service was on par with Australia but everyone wanted their 15% tip anyway.

    • +1

      That is why we need a list of the ones that don't do surcharge and go there instead to reward them. Vote with your wallet.

      • Like

  • +11

    I remember when this first became a thing. I was outraged when we went out for a meal several Australia days ago and there was a surprise public holiday surcharge of 15%. I went full karen on them in the google reviews, then a couple of years ago I grew up and felt bad about it and removed it.
    But I still won't restaurant on a public holiday.

    • +6

      the only time i think i have been 'outrage' is when there was no notice until i 'went to pay'

      some places put in on the menu but this place only had a little 'hand written' sign at the front register which they had 'table service' for ordering but you paid at the front. Furthermore it was a 'fairly over priced cafe as is i sort of assumed the surcharge was already 'worked into the menu'

      low and behold 15 percent addition charge on top of what i thought was already an expensive menu

      i didnt say anything but i have not gone back to that cafe which is about 5mins from my house since out of sheer spite - im a bit of a believer local businesses dont survive if they dont look after local customers that place has been open a year now i it has not been busy for the past 6 mo everyone i know thinks it is simply to 'expensive' - i usually throw in my little surcharge story and it completely puts them off the joint

      • +3

        That’s exactly what happened. Absolutely no notice until you go to pay.
        When there was a $2 banana surcharge (During the days of $15kg bananas), it was quite visible on the menu. But the holiday surcharge came as a complete shock out of nowhere.

      • +1

        Happened to me yesterday at Glen Waverley, VIC.

        Most places had the surcharges (which was annoying but that's another story) but this one didn't. Went and dine and then at payment, the notice was attached at the register so no choice. 15%. Last year, this establishment had 0%.

        • Just wanting to catch up on the profits lost during the pandemic

    • +1

      Never go full Karen!

      • This is OZB. All the male Karen's live here

    • Too bad you went full Karen after the meal Had you done it before, they might've given you some additions to your food - free of charge! haha

    • +1

      I'm mindful of it. Actually felt like pizza hut last night but was like oh no, it can wait until tomorrow (today).

      • +3

        Exactly this ^.
        Surcharges are great. It saves us ozbarganers loads of money because we won't go to places that charge it!

  • +3

    They're annoying, but if I want the food I'll suck it up and pay.

  • +4

    OzB Tip, Don’t eat at those places that has a surcharge on a public holiday.

    • They may not tell you until you see the final bill!

    • You're the real MVP!

    • +16

      "I do want staff to be paid penalties." then "Penalties should be abolished for hospitalities and retail workers."

      Which is it?

      • +3

        They are not a hospitality of retail worker. They want penalties for themselves but screw other people.

      • My apologies I meant I don't.

        • +3

          You mean to say you don't want to pay Saturday Sunday and public holiday pay to one of the lowest income group in Oz?

          If you don't pay penalties no one will work them. If they get paid the same on a Monday for a Sunday or night shifts good luck trying to roster your weekends.

          • -1

            @pao2x: I don't want it to be mandated in law.

            If the market makes the price of labour at that rate then so be it.

            • +1

              @tsunamisurfer: Unfortunately hospitality workers are some of the most taken advantage of employees with very little power. So the market argument does not stack up.

              You want the restaurants to be open on public holidays but you don't to pay the workers more.
              What if I asked if you would be happy to work public holidays for no extra pay? Would you be happy?

            • +1

              @tsunamisurfer: The market has made it the price of labour.

              The alternative is that cafes don't open on weekends or public holidays. I'm not against it, many would be

          • @pao2x: Whilst I don't think penalty rates are a bad thing for workers, I used to work as a casual in hospitality/entertainment and the company I worked for never paid penalty rates. I was still happy to work weekends (e.g. Saturday nights, Sunday afternoons) though, and plenty of others were happy to take weekend shifts.

          • @pao2x: This, if you didn't pay penalties on public holidays, especially on a low paying job, then I rufuse to work, I'd rather have the time off, even when they do pay the penalty rates, I'm generally not interested and choose to have the time off with the family instead. Weekends and public holidays are the only days I get to spend alot of time with family or sometimes friends.

    • +1

      This comment really makes me wonder if people think before posting. How can you immediately contradict yourself?

  • +11

    I'm against it. I think they should do the math to work out what they need to charge on the regular menu to cover the whole year's costs, like how supermarkets do it. They don't charge 20% more on weekends and holidays, but they surely charge based on what it costs to run the supermarket across the whole year. Maybe small business owners aren't the brightest tools in the drawer and simply can't do that kind of math. Or they think people will want to eat on their day off and will pay whatever they charge, so the surcharge is free money. But I think it's bullshit. Restaurants should have one menu, one price, and maybe special deals for weekdays/lunch when it is slower.

    • +4

      I think they should do the math to work out what they need to charge on the regular menu to cover the whole year's costs,

      Hmm I think most do, but if everyone else is doing it and the law allows it, why wouldn't you wants extra $$$ and cry poor.

    • -1

      No thanks I don't want to subsidize the people by having to pay more when I come in on non-public holiday occassions.

      • +2

        Everyone subsidises everyone else except for a few whales at the time. If you're overweight then skinny people are subsidising you by using reinforced chairs that they don't need. If you have a small bladder then normal people subsidise you by buying more drinks. It's impossible to have real equality because everyone has different needs. People who catch the bus to the restaurant are subsiding your parking spot. Fast eaters are subsidising people with arthritis during dinner rushes.

        • +2

          Yeh but your argument is based on doing the same as supermarkets. Supermarkets literally have minimal staff on with people expected to do self checkouts - staff wages is thus a small % of the overall costs. When you compare to a restaurant where wages represents the majority of the overall cost then paying 200X the wages bill is not feasible. The 15% surcharge still doesnt cover the increase in wages but it probably stops the restaurant operating at a loss.

          • +2

            @p3nf0ld: Do you know what stops restaurants from operating at a loss? Pricing their menu based on their annual costs. You don't need to hire a PhD in math to work it out. The number of holidays per year is not a secret.

            • +2

              @AustriaBargain: Yeh Nah. It is a PUBLIC HOLIDAY. The name is a bit of a give away. It is not a regular day of trade so if they do want to open then they have significantly higher costs and this should be reflected in the price you pay.

              Invariably, if you ask people if they would like to shop on a public holiday they say yes. If you ask them do you think you should pay more they say no.
              Then you ask them would they be happy to work on a public holiday for no extra money and guess what the response is.

              • +1

                @p3nf0ld: They are free to close. I think closing is a perfectly valid option, give their staff a day off so they can enjoy the holiday. And people are free to not ever go to a place that charges more on certain days, a good percentage here don't like it. Restaurants have the freedom to charge what they want when they want and we the public have the freedom to feel any way we want about it and voice those feelings about it, we hav the freedom to never eat there again even on regular days if we want. We have the freedom to advise our friends not to ever eat there and we have the freedom to air our feelings about it on public reviews. Whole lot of freedom on both sides.

                • +4

                  @AustriaBargain: I agree 100%. Free to open. Free to close. Free to set the prices they like.

                  I've just worked too many public holidays and I certainly wouldn't have been keen to work them if I was getting my usual wage.

              • +1

                @p3nf0ld: It’s a public holiday so that people can enjoy leisure time. Leisure oriented service industries like restaurants SHOULD be open then above all other times. And they should have worked out the financials to make it feasible. Otherwise maybe they should choose a different industry to operate in.

          • @p3nf0ld: How do you think the produce gets from the trucks to the shelves? Just because you don’t see the staff doesn’t mean they don’t exist

  • +7

    It is fine as long it is stated clearly outside a restaurant so you can make that decision before sitting down. Dont be as sneaky as Bravarian and put all sorts of surcharges in fine print on the menu. They are so small you will need a microscope to see them.

  • Went out to eat for lunch today, had to pay the 15% surcharge, wasn’t bothered by it.

    • +9

      The 15% used to be 10%. It will soon go up to 20% until it hits 100% because many people "wasn't bothered by it".

      • Wait till it's 200%… They'll say it's because staff are getting triple pay.

        • +3

          Ikr! Apathy is the problem of the society these days.

          Too many "Wasn't bothered by it" and the disease spreads undetected until the cancer is too big to remove.

          It would take a very strong politician to blanket ban surcharges now. It would have been easier 4 years ago but alas….

          • +2

            @burningrage:

            Apathy is the problem of the society these days.

            Hard agree. People these days just accept things for what they are even when they are objectively shit, and they don't actually see anything wrong with the world around them.

            "Oh the roads here [Sydney] are shit, that's just how it is." — Meanwhile it's the most tolled city on the planet and people in the West especially are further marginalised and disadvantaged if they need to drive into the city.

            "This shopping centre/area [Macquarie Centre/Macquarie Park] is laid out like shit and congested, that's how it is." — Meanwhile people spend 20-30 minutes trying to leave the carpark on a Saturday afternoon at 3pm because it's so congested, Epping Road and Carlingford Rd gets blocked up by 12pm on a Saturday, which wastes everyone's time sitting in traffic just to get home, vegetables are often by 6 pm in Woolies and Coles because of how dense the population is.

            "Nothing wrong with the amount of immigration, that's how it is, we are experiencing a skills shortage and you must be a racist for suggesting otherwise." — Meanwhile we have an ever-worsening housing crisis, rental vacancies in our major cities are at an all time low, there is a small amount of people being forced into homelessness and living in tents in a park (!) but hey it's ok let's just import another 100,000 people because "they have skills we don't have". Someone came into my company from overseas not long ago and works as an Executive Assistant and whilst she's a great person, are you seriously telling me someone who was born here who is healthy, able and probably just wants a (profanity) job couldn't do her role?

            "House prices are fine, that's how it is, you just gotta pay $1 million for that shack 30 mins from the CBD these days." (often accompanied with "f you got mine") — Meanwhile the amount of people owning property is decreasing and the amount of people renting is increasing which will further lead into deeper wealth and social inequality, there is an increase in people working multiple jobs (probably not all paying a mortgage, but some are and some are probably doing it to afford rent as well), people who just want to simply buy and own one home to live in are often elbowed out by investors at auction, REAs are absolute scum and enabled by the housing fetish this country has.

            But hey, it's all good, she'll be right mate. F me dead.

          • @burningrage: So you are happy to work on public holidays for no extra money? Just give me a second while I call your boss and let him know …

            • @p3nf0ld: I think you have very limited knowledge of how a hospitality business works. They get increased trade on public holidays which more than makes up for increased wages without the need for surcharges.

              If there is no increase in customers then you need to revisit your pricing, service or food offerings.

              • @Guybrush57: Worked in retail and hospitality as an employee and stints as a manager so I would say I have pretty good knowledge.

  • If it's a good restaurant I'm fine with it. Good places put on staff based on expected customers, more customers, more staff will work those days. Add penalty rates on top and it can get expensive.

    But so many cafes/restaurants these days are working fixed salaries all year round that roll in the price of the extra wages. Then it's just price gouging because they can. If I'm aware of it, I simply won't go there at all, weekend or otherwise.

    • +7

      Yes, having a PM care that workers are paid is sooooo communist.

      God you're an embarrassment, Payless.

      • -3

        Uber drivers are not paid more, 8 asian 3rd world caring countries keep their 27.5% inside their own country!
        4th world commoAlbo does NOT care!

        • Let me guess - It's the WEF's fault!

          • @ThithLord: Actually Klaus Schwab is one of the most hated men out there and I would agree with the poor public getting screwed by him!

        • +1

          Uber drivers are not paid more

          What is surge pricing?

  • +1

    To be honest, no body likes to pay extra. If you are not happy/willing to pay the extras then don't go out. If you do go out be prepared to pay the extras.

    • It's not about paying extra for me - it's about where the extra money goes. Does it go to staff? No problem. Does it go to ownership? Screw that

  • +1

    If you dont want to pay P.H surcharge dont go to cafe/restaurant that charge surcharge.

  • +1

    I do not care what surcharge or additional cost they want to impose on guests as long as it is DISCLOSED early and clearly. We have choices, and nobody is forcing us to dine anywhere so don't go if you don't likkkkkkke it.

    Btw heard of the HIGA award, yes employers who do the right thing will pay the penalties as required.

  • Stay at home and sleep. Nobody wants you outside whinging at every counter because of PH surcharge and causing massive delays for other customers.

    • +1

      It's not the surcharge itself that's the problem. It's the need for the restaurant to be upfront about the charges so that potential customers can make informed choices.

      Imagine going to a restaurant with only $20 in your pocket, ordering a burger from the menu that's listed as $20. Perfect, right? You finish your burger and get the bill but the total says $23 because of a 15% PH surcharge. What now? Would you offer to wash the dishes?

      Whereas if they'd been upfront about the surcharge, knowing you didn't have enough money. you most likely wouldn't have stepped foot in there in the first place

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