Restaurant savaged by reddit user for hidden gratuity
A restaurant that charged a mandatory gratuity fee has been forced to backtrack on the move, which it now admits was a “mistake”.
The venue has come under fire from several diners, including one who noticed the charge in the fine print of NOLA Smokehouse and Bar's website.
"I was thinking of going to this restaurant but saw the fine print about a 'discretionary' 10% gratuity," one Reddit user wrote. "Can we start rejecting this backwards logic and obvious gouging?"
The complainant noted others’ dissatisfaction including a review which stated: "Everything was good except the 10% gratuity added to the bill. It's my option to tip or not. I also tip 15-25% in cash separate from the bill. Don't force it on me. One star for this rubbish."
The restaurant initially defended the charge as "standard practice in the hospitality industry". It said the money was "used to ensure all staff are fairly compensated for their work."
However, when questioned by 9Honey Kitchen, the steakhouse admitted its response the review was incorrect.
"Unfortunately, in response to one recent review, our team mistakenly advised that we charge a mandatory 10% gratuity fee to our guests.
"The service charge is not mandatory; it is discretionary and can be removed upon request."
According to Australia's consumer watchdog, restaurants and cafes are free to set their own surcharges. However, it is against regulation to hide surcharges on the menu.
"Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in," the Australian Competition and Consumer Commission said.
"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."
Diners are becoming increasingly frustrated by hidden charges, particularly gratuities.
One Reddit users questioned why diners were paying employee wages.
"Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?" one quipped.
"I'd never eat there again," another wrote. "Doesn't matter how good the food is."
A poll by Nine.com.au found Australians are happy to tip if the service is good enough.
Just don’t force it on them.
Jonathan Jackson, 11th May 2023
