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Yahoo
27-04-2025
- Business
- Yahoo
$24.6 million surcharge problem questioned as Aussies fork out big time over Easter, Anzac Day
Anthony Albanese has questioned why some pubs, cafes, and restaurants are charging Australians up to 25 per cent more on Sundays and public holidays. The additional charge has been in the spotlight recently due to the back-to-back Easter and Anzac Day long weekends. Venue owners have told Yahoo Finance that adding a few dollars to each bill is essential in keeping the lights on amid the rising cost of goods, staff wages, and utilities. But the Prime Minister isn't too sure about that. "The market is choosing to do that," he told the Australian Financial Review. Aussie boss defends controversial public holiday surcharge as workers paid $62 an hour Homebuyers warned over 'magical phrase' used by Australian agents to increase prices Aussie couple loses $170,000 house deposit over to two-letter error: 'Changed everyone's lives' Albanese stressed not every venue is hitting Aussies with an extra surcharge, and he hit back at the idea that the increasing minimum wage in the past few years was to blame. "If you have an underclass of working people not being paid properly, without proper wages and conditions, you will see social division," he said. The Prime Minister added that he was able to earn penalty rate wages four decades ago at a restaurant and customers didn't have to pay an arm and a leg to support that. Sundays usually attract a surcharge of between 10 to 15 per you're getting two $6 coffees and two $15 bacon and egg rolls, that would set you back $42. A 15 per cent surcharge will add an extra $6.30 to your bill, which isn't a small chunk of change. Public holidays surcharges are typically around 10 to 15 per cent, but it's not unheard of to get as high as 20-25 per cent. That same breakfast would cost you an extra $8.40 if you grabbed it on Easter Sunday recently. revealed that out of the $98.4 million that Aussies were tipped to spend over the back-to-back long weekends at cafes, restaurants and pubs, $24.6 million of that would go towards surcharges. Ahmed Wassel, owner of Melbourne juice bar Drp Bar, said staff penalty rates are the key driver in him adding a 15 per cent surcharge to his menu over Easter. He told Yahoo Finance it cost him $5,000 extra to open over the four-day long weekend because his workers were earning so much more every hour. Drp Bar shared a video recently to highlight the huge jump in the staff hourly rate during a public holiday, where the business joked workers were "earning CEO wages". The amounts ranged from $30.13 to $62.45 per hour, with part-time and full-time staff entitled to double their usual rate and casual staff paid double and a half. Wassel said the 15 per cent surcharge didn't even come close to covering this additional cost. 'That's not even factoring in everything else, so the cost of goods, rent, electricity, it does take a big toll,' he told Yahoo Finance. 'Energy just keeps going up. Rent is the same until the yearly review. Operating costs have increased, especially since wages went up and super went up as well.' Dan Dick, who owns several cafes across Melbourne, told Yahoo Finance that surcharges are a necessity these days. "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. A poll of more than 9,300 Yahoo Finance readers found the majority (63 per cent) believe it's fair for a venue to slap on a surcharge on public holidays. Businesses are required to have clear information that outlines the surcharges that will be involved. The consumer watchdog states this information needs to be "clear" and "accurate" that appears "prior" to customers booking, ordering or paying. "Consumers should be made aware of any weekend and public holiday surcharges that may apply before they decide to order or purchase products from restaurants and cafes," the Australian Competition and Consumer Commission states. "If the menu does not list prices, information about these surcharges must be displayed in some other prominent way." There is technically no limit to the amount that venues can charge consumers.
Yahoo
23-04-2025
- Business
- Yahoo
Aussie boss defends controversial public holiday surcharge as workers paid $62 an hour: 'CEO wages'
A Melbourne juice bar owner has lifted the lid on how much public holiday rates cost his business, with some staff paid as much as $62.45 an hour. He said the reality was public holiday surcharges were necessary for staff to be paid properly and for businesses to 'stay open'. Ahmed Wassel, owner of Drp Bar, told Yahoo Finance it cost him around $5,000 more to open his juice and acai bars over the Easter long weekend just past. He usually has between five to seven staff working each day, who are entitled to penalty rates. 'Last week Friday to Monday with the same roster cost us just over $7,000 in wages, that's not including super,' Wassel said. 'This long weekend that's just passed, Friday to Monday, that cost us over $12,000 in wages. So it is a big jump.' RELATED Cafe owner hits back at customer's wild public holiday surcharge threat: 'Scum of the earth' Cash withdrawal nightmare exposed as Aussies try to win big on cryptocurrency: 'Blew my mind' Commonwealth Bank makes huge RBA interest rate cut call: 'Done deal' Drp Bar, which has locations in Carlton and South Morang, shared a video online where staff members shared how much they were being paid to work on the public holidays. Amounts ranged from $30.13 to $62.45 per hour, with part-time and full-time staff entitled to double their usual rate and casual staff paid double and a half. The business joked staff were "earning CEO wages" due to the public said the added costs were why it had to apply a 15 per cent public holiday surcharge. But he said it was still 'nowhere near enough' to cover the extra costs. 'That's not even factoring in everything else, so the cost of goods, rent, electricity, it does take a big toll,' he said. 'Energy just keeps going up. Rent is the same until the yearly review. Operating costs have increased, especially since wages went up and super went up as well.' Wassel said he and his business partner did not pay themselves for working over the long weekend. Aussies are still divided over public holiday surcharges. A Yahoo Finance poll of more than 7,500 readers found 63 per cent thought they were 'fair', leaving 37 per cent in opposition. Drp Bar also received mixed responses from their video. Many praised the acai and juice bar for paying their workers well, with some even asking if they were hiring. But others were critical of businesses passing on costs to customers and questioned why businesses opened at all. 'Just because you're incurring a cost doesn't automatically mean it should be alleviated by adding surcharges, customers aren't prioritised, only when they're paying,' one wrote. 'Why even charge a surcharge? Just raise your everyday price to smooth out your expenses for holidays,' another said. Wassel said most customers understood the need for public holiday surcharges, but there were still a handful who questioned it and 'huffed and puffed'. He noted Drp Bar had offered double point rewards to customers over the long weekend, with customers who spent $50 able to get a free drink with 100 points. "I don't like charging the surcharge, but unfortunately, it's just one of those things we have to do to stay open," he said. Lightspeed managing director Nicole Buisson said public holidays were often a 'double-edged sword' for hospitality businesses. 'Successive long weekends courtesy of the Easter and ANZAC day public holidays will provide a great opportunity for venues to increase customer volume, and therefore revenue,' she told Yahoo Finance. 'Despite seeing more foot traffic through the door, they also mean an inevitable spike in operating costs.' Wassel said public holidays were usually pretty good for business, but the Easter long weekend was a 'weird' one with people going away and the cost of living potentially impacting sales. 'We basically take a loss, to be honest,' he said. Despite this, he said it was still important for the business to open up on public holidays. 'It's not about always making a profit, obviously we're in business to make a profit, but we know people are out with their families and they want a treat and our customers do count on us to provide that service and be open for them,' he said.
