Diners angry about growing restaurant surcharges

While pre-service default QR code tipping has become a source of anger for Australian diners, it seems they are also being slugged a raft of surcharges as the Australian restaurant scene looks to Americanise its practices.

Diners have vented their frustration, particularly at more expensive venues slugging them hidden or unexpected surcharges.

Dining group Pacific Concepts has come under repeated fire for charging a 6.5 per cent “venue surcharge”. One patron who was ‘enjoying’ a cocktail at Pacific Concepts’ El Camino Cantina was slugged $34.54 for a 700ml Cadillac Mango Margarita.

The price included the unexpected $2.08 “venue surcharge” and an additional 0.46 card processing fee.

“Prices are already extremely high, then at the end they sting you with a 6.5 per cent venue charge, a credit card charge, and then they ask you for a tip,” the customer told news.com.au.

“This should be all paid by the restaurant as an expense they provide … can’t they claim that on tax anyway as a business expense?

“I am appalled by how businesses really destroy customer confidence in going out for a meal,” he said.

Pacific Concepts called the surcharge ‘commonplace’.

“Card processing fees and service charges are commonplace across the Australian hospitality industry and cover various costs incurred by businesses,” a spokesperson told news.com.au.

The anger over venue surcharging follows the discomfort shown by some diners who are forced to pre-pay tips while ordering through a QR code.

News.com.au conducted a poll asking if businesses should ask for tips and found 98 per cent of readers thought workers got paid enough already.

Consumer advocate Adam Glezer, from Consumer Champion said of the matter, “A tip is something you pay for good service and it’s optional.

“In Australia, the waiting staff are on a much higher wage than those in America, where they rely on their tips,” he said.

“It sounds like Australian businesses are trying to Americanise themselves. There is no justification for paying a tip before a service is provided.”

Jonathan Jackson - 30-01-23