As the Easter and ANZAC Day long weekends approach, Australians planning to eat out may be in for a financial surprise. Hospitality venues across the country are preparing to implement noticeable public holiday surcharges, which have become increasingly common at restaurants, cafes, pubs, and bars. Despite their frequency, these added fees continue to stir debate among diners, with many questioning their fairness.
The Real Cost of Holiday Dining Revealed
Insights from point-of-sale company Lightspeed indicate that public holiday surcharges typically fall between 10 and 15 percent, although some establishments set them as high as 20 percent. Nicole Buisson, managing director at Lightspeed, explained that no official maximum exists, meaning businesses are free to determine their own rates. The only legal requirement, enforced by the Australian Competition and Consumer Commission, is that these surcharges must be clearly displayed on menus.
Hospitality Hotspots Leading the Surcharge Surge
The practice of adding surcharges is most prevalent in specific sectors of the hospitality industry. Bars and pubs are the leading adopters, making up 39 percent of public holiday surcharge cases. Restaurants follow closely at 37 percent, while cafes apply these fees in 36 percent of cases. Bakeries are less likely to impose them, but still account for 24 percent of occurrences. While these charges may frustrate patrons, many businesses argue they are vital for coping with the operational demands of public holidays.
Public Holidays Pose Operational Challenges for Business Owners
Buisson described public holidays as both an opportunity and a challenge for hospitality operators.While elevated footfall can boost revenue, it is often offset by substantial operational expenditures, including mandatory public holiday pay of 225–250% of regular wages. Without the additional revenue from surcharges, many business owners say it would be financially unsustainable to open on these days.
Industry Voices Speak Out on Financial Realities
Queensland cafe owner Ruby Rule, who runs three venues, highlighted the financial strain of operating during holidays. She applies a 15 percent surcharge and has described it as a necessity rather than a choice. On a recent public holiday, her cafes faced around $3,000 in extra expenses but recovered only $719 through the surcharge, despite reduced operating hours. Similarly, Dan Dick, a cafe owner in Victoria, shared that eliminating surcharges would force many small venues to close on holidays due to unmanageable costs.
Mixed Reactions Among Customers on Added Costs
Consumer attitudes toward surcharges remain conflicted. While 52 percent of Australians accept public holiday surcharges, other types of extra fees are less palatable. Only 37 percent support weekend surcharges, 34 percent approve of credit card fees, and just 23 percent agree with charges applied to large group bookings. These figures suggest that while public holiday surcharges are the most tolerated, they are far from universally embraced.
Clear Communication Can Ease Frustrations
Transparency is key to reducing customer dissatisfaction, with Buisson stressing the importance of clearly communicating any extra charges. Diners are encouraged to review menus beforehand to avoid unexpected costs. Businesses that clearly communicate their policies tend to face less backlash, as customers appreciate honesty about what they will be charged.
Surcharges Becoming a Permanent Fixture in Dining Culture
What was once an occasional annoyance, surcharges have now become a regular feature of dining out in Australia. With inflation and wage pressures continuing to rise, more venues are adopting them as a necessary tool for survival. As long weekends approach, consumers should anticipate these added costs and factor them into their plans. Awareness and preparation can help ensure a smoother dining experience for everyone involved.
