Hidden surcharge raises red flag amongst restaurant goers
An additional 5% "industry service charge" on a customer's bill raised a red flag for a Brisbane diner recently.
The Bavarian Bier Café customer noticed the surcharge on her restaurant receipt after eating at the popular Maroochydore restaurant.
The diner took to Reddit to question the charge.
"Can anyone explain what the $5.35 industry service charge is?", he asked.
"I have not seen this hidden gem before," he added.
The bill of $112.35 was broken down into two $15 kids' cheeseburgers, two additional meals and a $20 salad.
Many on Reddit said the extra surcharge was unfair given the current cost of dining out, while others claimed a mandatory tip was “illegal”.
"Looks like just another way for Bavarian Bier Cafe to rip people off on their overpriced food and drinks," one person commented.
"They’re forcing you to pay a tip which I believe is meant to be a choice in Australia," another Redditer said.
The restaurant’s website makes clear that a 10 per cent surcharge applies on Sundays, 15 per cent on public holidays and a 5 per cent service fee applies Monday to Saturday.
There is no explanation of what the surcharge is for. While it could be to cover weekend penalty rates, an everyday charge has been labelled deceptive and fraudulent, with one poster saying that "the surcharges aren't illegal, just shady".
Pacific Hunter Group which operates the Bier Café told Yahoo News Australia the service fee "is a result of strong inflation impacting the business".
"Our business continues to be impacted by Covid-19 induced hospitality hardship," a company spokesperson said in a statement.
"The additional burden of soaring inflation and wage costs led to our tough decision to add the service charge to the menu across all our restaurants for an interim period."
According to Griffith University marketing expert Dr Sara Thaichon a surcharge is legal as long as customers are aware of it before any transaction is made.
"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 where we do not have a tipping culture as the US," Thaichon told Yahoo News Australia.
"While a voluntary tip is intended to go to the employees who provide the service, a service charge often goes directly to the business to cover the cost of the business such as the costs to provide the actual services or administrative costs."
Irit Jackson, 31st August 2022
