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Surcharge tip-offs

13 June 2010 56 Comments
This week, Reportage and 2SER Radio Atticus reported that scores of restaurants and cafés in Australian capital cities were flouting consumer protection laws and illegally charging patrons on weekends and public holidays. Now, we want your help.

Editor’s note: Reportage Online would like to thank the public for its overwhelming response to the surcharge campaign. We have received tweets from all over Sydney and as far up as Brisbane. However, some restaurants and cafes dobbed in by tweeters have now denied charging the surcharges. Due to a lack of resources, Reportage journalists cannot visit every cafe and restaurant personally to verify the claims. Because of this, we ask Twitters to send in Twitpics of their bill showing the *% surcharge. These will be added to our Twitter stream. Remember to include the #surcharge hashtag to all tweets!

Reportage Online will attempt to verify all tweets of illegal surcharging.

If you use twitter, then tweet the restaurant or cafe’s name and surcharge amount using the #surcharge hashtag, and we’ll confirm with the restaurant or cafe and then plot it on our map. You can also tweet a photo of the menu showing the surcharge, or of your bill with the surcharge listed on it.

For those without twitter, you can leave a comment below (comments will be held until verified with the cafe/restaurant mentioned), or send an email to reportage.acij@gmail.com.

Read the original story about Surcharge Sinners.


Data collected between May 17 and June 6, 2010. View Weekend & Public Holiday Surcharges in a larger map

Section 53C of the Trade Practices Act forces businesses to incorporate surcharges into their menu prices. A simple asterisk at the bottom of a menu or bill showing the percentage surcharge is illegal.

However, any businesses charging a set dollar amount, (for example, $3.00 per person) is permitted.

While the ACCC said they are serious about this law, no restaurants have been prosecuted since the law was passed over a year ago.

So send in your tips to show which restaurants and cafes are still not complying.

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  • Laura

    Royal Cricketers Arms in Blacktown have 10% extra on Sundays!

    [Reply]

  • Laura

    Royal Cricketers Arms in Blacktown have 10% extra on Sundays!

    [Reply]

  • Amanda Hoh

    Thanks Laura, keep them coming!

    [Reply]

  • Amanda Hoh

    Thanks Laura, keep them coming!

    [Reply]

  • http://www.acij.uts.edu.au Wendy Bacon

    What a great idea. A really good use for twitter. Collecting info with first hand reporting – what will the ACCC say?

    [Reply]

  • http://www.acij.uts.edu.au Wendy Bacon

    What a great idea. A really good use for twitter. Collecting info with first hand reporting – what will the ACCC say?

    [Reply]

  • Bonnie Yiu

    It’s dotted on the map already, Umi Kaiten-Zushi, a Japanese restaurant in Chinatown will still put up an extra 10% surcharge for the public holiday tomorrow and that is without a separate menu nor of any indication of extra cost!

    [Reply]

  • Bonnie Yiu

    It’s dotted on the map already, Umi Kaiten-Zushi, a Japanese restaurant in Chinatown will still put up an extra 10% surcharge for the public holiday tomorrow and that is without a separate menu nor of any indication of extra cost!

    [Reply]

  • http://www.profitablehospitality.com/ Ken Burgin

    It’s true, there should be no surcharge, just a repriced menu. But this is starting to look like cyber-bullying.

    Most restaurants & cafes can’t afford to be open on Sunday and Public Holidays – holiday wage rates are more than $40 ph for some staff! These are some of the most marginal businesses in the SME sector – there are shonky operators in other industries doing much more harm. Please reconsider…

    [Reply]

    Nick Evershed Reply:
    June 14th, 2010 at 11:45 am

    Thanks for your comment Ken. The journalists working on this story are contacting every restaurant or cafe mentioned and letting them know, we’re not publishing anything without checking first if the operators were unaware of the law changes, and confirming if any comments here or on twitter are correct. If an owner/operator was unaware of the law, we’ll make that clear.

    (for everyone else who has commented, that’s why the comments are still being held in moderation, while we verify)

    -Production Editor

    [Reply]

  • http://www.profitablehospitality.com/ Ken Burgin

    It’s true, there should be no surcharge, just a repriced menu. But this is starting to look like cyber-bullying.

    Most restaurants & cafes can’t afford to be open on Sunday and Public Holidays – holiday wage rates are more than $40 ph for some staff! These are some of the most marginal businesses in the SME sector – there are shonky operators in other industries doing much more harm. Please reconsider…

    [Reply]

    Nick Evershed Reply:
    June 14th, 2010 at 9:45 pm

    Thanks for your comment Ken. The journalists working on this story are contacting every restaurant or cafe mentioned and letting them know, we’re not publishing anything without checking first if the operators were unaware of the law changes, and confirming if any comments here or on twitter are correct. If an owner/operator was unaware of the law, we’ll make that clear.

    (for everyone else who has commented, that’s why the comments are still being held in moderation, while we verify)

    -Production Editor

    [Reply]

  • SUMMER SUN

    CAFE BELLO , SHOP 172 BURWOOD WESTFIELD SHOPPING CENTER, STILL HAVE 10% SURCHARGE WITHOUT ANY FORMAL INFORMATION AND SEPARATE MENU.PH 02 97451545

    [Reply]

  • SUMMER SUN

    CAFE BELLO , SHOP 172 BURWOOD WESTFIELD SHOPPING CENTER, STILL HAVE 10% SURCHARGE WITHOUT ANY FORMAL INFORMATION AND SEPARATE MENU.PH 02 97451545

    [Reply]

  • Andrew

    Don’t forget the North Shore.

    Season Thai @ 780 Pacific Highway Gordon displays a sign an extra 10% charged on public holidays – I mentioned it was illegal according to the trade practices act and they did not appear concerned so I also asked for a receipt and it shows the date/time the items I bought and the extra 10% charged.

    [Reply]

  • Andrew

    Don’t forget the North Shore.

    Season Thai @ 780 Pacific Highway Gordon displays a sign an extra 10% charged on public holidays – I mentioned it was illegal according to the trade practices act and they did not appear concerned so I also asked for a receipt and it shows the date/time the items I bought and the extra 10% charged.

    [Reply]

  • Andrew

    http://www.seasonthai.com.au/images/SeasonThai_Take_away_M.pdf

    see bottom LHS “10% surcharge on public holidays”

    [Reply]

  • Andrew

    http://www.seasonthai.com.au/images/SeasonThai_Take_away_M.pdf

    see bottom LHS “10% surcharge on public holidays”

    [Reply]

  • Letitia Smith

    Burnt Orange at Middle Head, Mosman charge 10% on Sundays and Public Holidays. When I questioned the waiter yesterday, his response was “We know it is illegal, but we are charging it anyway. Everyone still does it.” (btw, it was followed with a dirty wine glass and a 45 min wait for our meals!)

    [Reply]

  • Letitia Smith

    Burnt Orange at Middle Head, Mosman charge 10% on Sundays and Public Holidays. When I questioned the waiter yesterday, his response was “We know it is illegal, but we are charging it anyway. Everyone still does it.” (btw, it was followed with a dirty wine glass and a 45 min wait for our meals!)

    [Reply]

  • http://www.acij.uts.edu.au Wendy Bacon

    This is scarcely cyber-bullying. It’s just using twitter to tell the story by collecting on the ground information. If restaurants and cafes need to charge more, to make a profit on public holidays and Sundays, they can just have a separate menu and charge more. If people query the prices, they can explain they need to pay the penalty rates to their staff

    [Reply]

  • http://www.acij.uts.edu.au Wendy Bacon

    This is scarcely cyber-bullying. It’s just using twitter to tell the story by collecting on the ground information. If restaurants and cafes need to charge more, to make a profit on public holidays and Sundays, they can just have a separate menu and charge more. If people query the prices, they can explain they need to pay the penalty rates to their staff

    [Reply]

  • Ben

    Eastwood Garden Peking Restaurant put up $1 surcharge per head on Queen’s Birthday, Monday June 14th

    [Reply]

    Lauren Moorhouse Reply:
    June 15th, 2010 at 1:00 am

    G’day Ben, Thanks for the comment. Just wanted to say that a X$ per person surcharge is LEGAL under s53 of the Trade Practices Act. The reason is that a $ per person surcharge is not quantifiable because it is based on how many people walk in the door and sit at a table. A restaurant can’t guess what that will be on any given night, and so dont need to incorporate it into the bill. But because a percentage surcharge is based on the restaurant or cafe’s prices, they will always know that on say a sunday, the food will actually cost 10% more. It’s quantifiable, and it doenst matter if 1 or 100 people walk in the door.

    Hope that makes sense. Simply, $ per person is ok, % surcharge is not.

    Check out http://www.accc.gov.au/content/index.phtml/itemId/881612 for more.

    Lauren Moorhouse

    Chief editor

    [Reply]

  • Ben

    Eastwood Garden Peking Restaurant put up $1 surcharge per head on Queen’s Birthday, Monday June 14th

    [Reply]

    Lauren Moorhouse Reply:
    June 15th, 2010 at 11:00 am

    G’day Ben, Thanks for the comment. Just wanted to say that a X$ per person surcharge is LEGAL under s53 of the Trade Practices Act. The reason is that a $ per person surcharge is not quantifiable because it is based on how many people walk in the door and sit at a table. A restaurant can’t guess what that will be on any given night, and so dont need to incorporate it into the bill. But because a percentage surcharge is based on the restaurant or cafe’s prices, they will always know that on say a sunday, the food will actually cost 10% more. It’s quantifiable, and it doenst matter if 1 or 100 people walk in the door.

    Hope that makes sense. Simply, $ per person is ok, % surcharge is not.

    Check out http://www.accc.gov.au/content/index.phtml/itemId/881612 for more.

    Lauren Moorhouse

    Chief editor

    [Reply]

  • kATE

    Everton Park Hotel -$2 surcharge, queens bday monday.

    [Reply]

    Amanda Hoh Reply:
    June 15th, 2010 at 3:16 am

    Hi Kate,

    Surcharges with a set dollar amount, like $2 per person is actually allowed. As the price is set regardless of the meal you order, it escapes the rule stated in section 53C.

    Amanda
    Chief Editor

    [Reply]

  • kATE

    Everton Park Hotel -$2 surcharge, queens bday monday.

    [Reply]

    Amanda Hoh Reply:
    June 15th, 2010 at 1:16 pm

    Hi Kate,

    Surcharges with a set dollar amount, like $2 per person is actually allowed. As the price is set regardless of the meal you order, it escapes the rule stated in section 53C.

    Amanda
    Chief Editor

    [Reply]

  • renee

    miss marmalade in brunswick west (vic) was charging 10% yesterday – written on a blackboard in the corner, not very visisble

    [Reply]

  • renee

    miss marmalade in brunswick west (vic) was charging 10% yesterday – written on a blackboard in the corner, not very visisble

    [Reply]

  • Duncan

    Burnt Orange in Mosman. 10% surcharge on Public Holidays.

    [Reply]

  • Duncan

    Burnt Orange in Mosman. 10% surcharge on Public Holidays.

    [Reply]

  • http://www.ProfitableHospitality.com Ken Burgin

    When this ruling was announced by ACCC last year, it was immediately circulated by the Restaurant & Catering Association in each state to their members (I’m an associate member). But a majority of restaurant and cafe owners DO NOT belong, particularly ethnic restaurants where the managers/owners often have a limited grasp of English.

    When GST was introduced there was an enormous, lengthy and multi-language campaign to inform every business owner about their obligations. How much was done by the ACCC around this issue? In fairness, could your investigators also check on that side of the story?

    [Reply]

  • http://www.ProfitableHospitality.com Ken Burgin

    When this ruling was announced by ACCC last year, it was immediately circulated by the Restaurant & Catering Association in each state to their members (I’m an associate member). But a majority of restaurant and cafe owners DO NOT belong, particularly ethnic restaurants where the managers/owners often have a limited grasp of English.

    When GST was introduced there was an enormous, lengthy and multi-language campaign to inform every business owner about their obligations. How much was done by the ACCC around this issue? In fairness, could your investigators also check on that side of the story?

    [Reply]

  • SIMON

    Hi,
    meat and wine co in sydney and they charged me $5 per person.

    [Reply]

    Amanda Hoh Reply:
    June 19th, 2010 at 2:43 am

    The set dollar amount is actually allowed Simon under section 53C in the Trade Practices Act. It’s like a loop hole for restaurants as the surcharge does not change regardless of what the customer orders. That is one of the highest dollar surcharges though compared to all the other places we found in the investigation. Thanks for posting.

    Amanda
    Chief Editor

    [Reply]

  • SIMON

    Hi,
    meat and wine co in sydney and they charged me $5 per person.

    [Reply]

    Amanda Hoh Reply:
    June 19th, 2010 at 12:43 pm

    The set dollar amount is actually allowed Simon under section 53C in the Trade Practices Act. It’s like a loop hole for restaurants as the surcharge does not change regardless of what the customer orders. That is one of the highest dollar surcharges though compared to all the other places we found in the investigation. Thanks for posting.

    Amanda
    Chief Editor

    [Reply]

  • martin

    Fitz Cafe in Brunswick Street Fitzroy (Vic) was charging 10% surcharge last Monday.

    [Reply]

    Amanda Hoh Reply:
    June 19th, 2010 at 2:40 am

    Thanks Martin, that’s one of the first cafes in Victoria that we have heard about charging the extra surcharges.

    Amanda
    Chief Editor

    [Reply]

  • martin

    Fitz Cafe in Brunswick Street Fitzroy (Vic) was charging 10% surcharge last Monday.

    [Reply]

    Amanda Hoh Reply:
    June 19th, 2010 at 12:40 pm

    Thanks Martin, that’s one of the first cafes in Victoria that we have heard about charging the extra surcharges.

    Amanda
    Chief Editor

    [Reply]

  • Ben

    Sydney Tower Restaurant lists a 15% surcharge on their website drinks menu. Not sure if they are charging it.

    [Reply]

  • Ben

    Sydney Tower Restaurant lists a 15% surcharge on their website drinks menu. Not sure if they are charging it.

    [Reply]

  • Gtw

    Crust Pizza charged a 10% public holiday surcharge on Melbourne Cup day. Tight bastards

    [Reply]

  • eatemup

    PizzaHut has a 10% surcharge on Public Holidays

    [Reply]

    Melissa Reply:
    January 3rd, 2011 at 3:31 am

    Yep – just ordered at Pizza Hut Bathurst and got a %10 surcharge – I told them it was against the law to add a surcharge and they told me that it was a big organisation and they were sure management would have told them if that was the case. They woudn’t wave the surcharge though!!!

    [Reply]

  • Brucemoon

    In reading the comments to this story, frankly, I am surprised.

    Not at the surcharge, unscrupulous operators will always seek to extract more – if possible.

    I am surprised that no-one has said that when perusing the menu and noting a surcharge, they not only call the waiter and ask the surcharge be waived but if the ‘waiver’ is refused, go elsewhere.

    Nowadays in Australia, price negotiation is endemic. I’ve found many operators will negotiate out the surcharge – especially when patrons are thin on the ground.

    Cheers

    [Reply]

  • Clow7

    Rivers Cafe Cotton Tree had 15% surcharge sign…when questioned owner said he had to pay his staff 450 an hour so I had to pay!!!

    [Reply]

  • Lisa

    Criniti’s Darling Harbour was charging 10% queens bday long weekend

    [Reply]

  • Olivia Denny

    Burley’s restaurant in Castle Crag are charging 10% on SUndays AND Public Holidays. Noted on their web menu under the “additional menu selections.”

    [Reply]

  • Brendan

    Visited Hugo’s restrurant at Manly Wharf yesterday. They charge $3 per head surcharge and it’s even written on the bottom of there menu. It’s not that they let you off lightly when it comes to dining costs either

    [Reply]

  • Guest

    Glass Dome Cafe, Budgewoi, charges a 10% surcharge on Sundays & Public Holidays and says their Accountant tells them they can do that!! In fact, their Manager, got defensive saying it was their right to do so! Will be spreading the word and avoiding it in the future!!!

    [Reply]

  • Guest

    Hi. We visited Amici’s Southbank on Easter Saturday and were hit with a 15% surcharge – still have the receipt to prove it.

    [Reply]