As Australians, we cherish our public holidays—times for relaxation, family gatherings, and occasional indulgence in our favourite eateries. However, the cost of enjoying a meal out on these special days often comes with an added fee: the public holiday surcharge.
While some customers may balk at the extra charge on their bill, business owners are stepping forward to explain the reasons behind this controversial practice.
A Melbourne juice bar owner, Ahmed Wassel, has candidly disclosed the financial implications of public holidays for his juice and acai bars, sparking a conversation about the balance between fair employee compensation and customer satisfaction.
Wassel revealed that his business paid over $12,000 in wages alone, a significant increase from the usual cost of staffing his establishments.
With rates for part-time and full-time staff doubling and casual staff earning two and a half times their usual rate, some employees took home as much as $62.45 per hour—a figure that Wassel humorously likened to ‘CEO wages’.
According to Wassel, the necessity of a 15 per cent public holiday surcharge is a matter of survival for businesses that operate on these days.
Despite the surcharge, he pointed out that the additional revenue is ‘nowhere near enough’ to cover the heightened costs, which include wages, the price of goods, rent, and utilities—all of which have been rising.
The decision to remain open and pay staff generously is not without its critics. A recent poll indicated that while 63 per cent of over 7,500 readers found public holiday surcharges to be ‘fair’, 37 per cent opposed them.
Some customers suggested businesses close on public holidays or adjust their everyday pricing to absorb the extra costs, rather than imposing a surcharge.
‘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.
Yet Wassel and his business partner’s commitment to their staff and customers is evident in their choice to forgo their pay over the long weekend and to offer incentives like double-point rewards to patrons.
‘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.
Nicole Buisson, managing director of Lightspeed, echoed Wassel’s sentiments, describing public holidays as a ‘double-edged sword’ for the industry.
‘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 explained.
‘Despite seeing more foot traffic through the door, they also mean an inevitable spike in operating costs.’
Wassel emphasised that there is still significant value in ensuring the business operates 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.
Have you encountered similar charges? Do you think they are justified? Let’s discuss the intricacies of this issue and how it impacts our choices as consumers and community members.
Also read: Sunday fees and sneaky surcharges—are you paying too much?
As a retired payroll clerk, I’ve seen penalty rates at 250% for Sunday & Public Holidays for many years.
In the Industrial awards, no matter which one, it ‘mandates’ these rates.
If anyone wants to complain and not want to pay the extras for the public holiday, etc rates, complain to the Fair Work Commission, and ask them to get rid of the penalty rates altogether. Oh no, they won’t want to do that, as it goes against the ethos of Australia’s Industrial Awards, which are the backbone of our fair work for a fair wage system.
Go behind the awards at your own peril.
Time we did away with such penalty rates, all days should be treated as the same, most work 5 days a week, shouldn’t make a difference which days, whatever suits the business or the individual