As Easter goes and ANZAC Day holiday approaches, Australians are gearing up for a well-deserved break, complete with family gatherings, commemorative services, and perhaps a meal out at a favourite cafe, restaurant, or pub.
However, amidst the holiday cheer, there’s a less welcome guest at the table: the public holiday surcharge.
It’s become almost as traditional as hot cross buns and dawn services—walking into a local eatery on a public holiday only to find that a surcharge has bumped up your bill.
While many of us have come to expect this extra charge, it can still leave a sour taste, especially when it’s not communicated upfront.
According to recent research from point-of-sale platform Lightspeed, just over half of Aussie consumers find public holiday surcharges ‘acceptable’.
Nicole Buisson, Lightspeed’s managing director, explained that these surcharges typically range from 10 to 15 per cent of the total bill, with some venues charging as much as 20 per cent.
The data also revealed that bars and pubs are the most likely to add a surcharge (39 per cent), followed by restaurants (37 per cent), cafes (36 per cent), and bakeries (24 per cent).
The Australian Competition and Consumer Commission (ACCC) doesn’t cap the amount a business can charge for a public holiday surcharge. Still, any such fees must be clearly displayed on the menu.
This transparency is crucial, as it allows customers to make informed decisions about where to dine during the holidays.
So why do these surcharges exist? Public holidays are 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 said.
Employees in Australia are entitled to 225 to 250 per cent of their base hourly rate for working on a 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, who charges a 15 per cent surcharge across her three cafes on public holidays, described them as a ‘necessary evil’.
She noted that opening these days costs her an additional $3,000, some of which is recouped through the surcharge.
Similarly, Victorian cafe owner Dan Dick emphasised that businesses simply can’t absorb public holiday rates and would close if it wasn’t financially worth it to open.
Despite the acceptance of public holiday surcharges being higher than other types of surcharges, such as weekend or credit card fees, the issue remains contentious.
Only 37 per cent of consumers agree with weekend surcharges, while even fewer are okay with credit card (34 per cent) and large booking surcharges (23 per cent).
To avoid being caught off guard by a public holiday surcharge, here are some tips for our readers:
- Do Your Research: Before heading out, check the venue’s website or social media pages, or give them a call to inquire about any additional charges on public holidays.
- Look for Signs: When you arrive, keep an eye out for any signage or menu notes that indicate a surcharge. If in doubt, ask the staff before ordering.
- Plan Ahead: Consider celebrating the holiday a day earlier or later when surcharges are less likely to be in effect.
- Support Transparent Businesses: Patronise venues that are upfront about their pricing. Businesses that communicate their surcharges clearly are showing respect for their customers.
- Vote with Your Wallet: If you disagree with the practice of public holiday surcharges, you can choose to dine at establishments that don’t impose them or opt for a home-cooked meal instead.
Remember, while surcharges may be a reality of dining out on public holidays, being informed and prepared can help ensure that your holiday celebrations are filled with joy rather than unexpected expenses.
And for those who do choose to dine out, understanding the reasons behind the surcharge can make it a bit easier to swallow.
We’d love to hear from you, our readers. What are your thoughts on public holiday surcharges? Have you had any experiences, good or bad, with them? Share your stories in the comments below, and let’s navigate the holiday season together, without any unwelcome financial surprises.
Also read: Centrelink closures and payment shifts set for Easter and Anzac Day
