Warning as 'divisive' cost to hit millions of Aussies from tomorrow: 'Necessary evil'
Aussies are being warned to prepare to be hit with hefty surcharges if they head out to a cafe, restaurant, bar or pub over the upcoming Easter and ANZAC day long weekends. Surcharges have become an everyday occurrence for Aussie consumers, with everything from card surcharges to weekend surcharges now the norm.
Despite this, public holiday surcharges are still highly divisive amongst consumers. New research from point of sale platform Lightspeed found just 52 per cent of consumers found public holiday surcharges 'acceptable'.
Lightspeed managing director Nicole Buisson told Yahoo Finance surcharges typically ranged from around 10 to 15 per cent of the total bill but there was no 'one-size-fits-all' approach, with some venues charging diners as much as 20 per cent.
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There's no limit on the amount a business can charge for a public holiday surcharge, with the Australian Competition and Consumer Commission only requiring businesses to clearly display the surcharge on their menu.
Lightspeed's data found public holiday surcharges were most commonly charged in bars and pubs (39 per cent) and restaurants (37 per cent), followed closely by cafes (36 per cent) and bakeries (24 per cent).Buisson said public holidays were often a 'double-edged sword' for hospitality businesses.
'Despite seeing more foot traffic through the door, they also mean an inevitable spike in operating costs,' she told Yahoo Finance.
'This is due in part to penalty rate wages, where employees are entitled to 225 to 250 per cent of their base hourly rate for working the public holiday.
'Without a surcharge, venues would be forced to absorb the additional operating costs, like higher public holiday penalty rates."
Queensland cafe owner Ruby Rule charges a 15 per cent surcharge across her three cafes on public holidays and said they were a 'necessary evil'.
'Opening on public holidays costs us around an extra $3,000, some of which is made back on the 15 per cent public holiday surcharge,' she previously told Yahoo Finance.
On a recent public holiday, Rule calculated that she made $719 from the 15 per cent surcharge across her cafes, which were operating on reduced hours.
Victorian cafe owner Dan Dick said businesses simply couldn't absorb public holiday rates and businesses would close if they didn't deem it worth it financially to be open.
"I think everyone's just got to understand that it's the necessary cost of being able to visit your favourite venues on days that they're essentially running at a loss,' he said.
Despite only half of Aussie consumers agreeing with public holiday surcharges, they were still the most accepted type of surcharge.
Only 37 per cent agreed with weekend surcharges, while 34 per cent agreed with credit card surcharges and 23 per cent thought large booking surcharges were acceptable.
Buisson said consumers who were worried about the surcharges should check ahead so they weren't caught off guard.
She said it was important for businesses to be transparent about their surcharges and to communicate with customers so they understand why they're being charged and the value it's bringing them.
'Surcharges are a common occurrence today, but the venues navigating what can be a contentious issue the best, are those who do so transparently, rather than sneaking it onto the end of the bill,' she said.
'Businesses who apply a surcharge must be transparent about pricing, displaying and communicating it before they make a purchase.
'Customers should never be caught off guard with a surcharge.'
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