Diner's fury over Aussie restaurant's '10% peak season' surcharge
The 10 per cent 'peak season surcharge' at the venue runs from December 27 to January 26, and is completely legal, experts say.
A diner has vented his annoyance over a restaurant’s 10 per cent “peak season surcharge” after heading out to eat with friends in the days following Christmas.
The frustrated patron was surprised to see the “questionable” surcharge — which runs from December 27 to January 26 — stated at the bottom of the Pavillion Geelong’s menu in Victoria.
A photo posted to Reddit shows the policy listed above the standard 20 per cent surcharge for public holidays. “[In my opinion] no need for a peak season surcharge,” the diner said. “Set your prices year round and absorb this bullshit. At least when it came up for a tip, the default option was ‘Yeah. Nah’.”
The irked visitor explained their mates had chosen the restaurant, which they accused of “gouging”, and they will not be returning.
Outrage over 'peak season surcharge'
The online complaint on Friday has sparked a contentious debate, with most Redditors agreeing that the “peak season surcharge” was “ridiculous”.
“I would have walked out before I ordered,” one person said. “Why would peak season cost them more though?” someone else wondered. “Surely peak season means it’s busier and the business is making more money. Unless all ingredients or electricity or rent is suddenly priced higher during that month, why would they need a surcharge?”
Aussies defend restaurant's policy
Despite the obvious outrage, numerous others defended the restaurant’s additional surcharge. “In our case we use it as a sweetener for employees to work during the busy time instead of being with their families,” a hospitality worker chimed in. “We don’t see the increase from the surcharge, we are just glad to be staffed during the holidays.”
“We live in a market system and supply and demand change prices,” another person argued. “The fact that these guys are up front about a surcharge means this is okay. If it was hidden then I wouldn’t like it.”
'Sneaky' surcharge is legal
Griffith University marketing expert Dr Sara Thaichon previously told Yahoo News Australia adding a surcharge is legal as long as customers know about it before making a transaction. “But it can be problematic from the customer perspective as it is often considered a sneaky tactic of restaurants, especially when customers are not expecting it in Australia,” she said.
According to the Australian Competition and Consumer Commission (ACCC), surcharges on different days are allowed but must be prominently displayed on the menu.
“Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide you a separate menu or price list or have a separate price column with the surcharge included. However, the menu must include the words ‘a surcharge of [percentage] applies on [the specified day or days]’ and these words must be displayed at least as prominently as the most prominent price on the menu.”
Yahoo News Australia has contacted the Pavilion Geelong for comment.
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