Anger over Sydney pub that charges 30% extra for drinks after 10pm

It is becoming more commonplace for pubs to charge more for alcohol after 10pm.

One Sydney venue is charging an extra 30 per cent for late night drinks, but has come under fire for the "excessive" price hike. 

The Oxford Hotel in Darlinghurst has refused to comment about its surcharge, however has faced one star reviews from angry patrons. 

A Reddit user posted that a jug of beer paid for at 9.18pm cost $24.36. A jug of the same beer cost $33.50 an hour later.

"When I asked the same staff member who served me, he said there was a late-night surcharge after 10pm," the customer wrote. 

The Oxford Hotel reportedly increased upped its prices during WorldPride earlier this year, but it is not the only venue charging more for drinks later at night. 

Several Sydney bars now use "tiered pricing", which sees them increase prices as the night goes on. 

Kelly's on King in Newtown has added a 10 per cent surcharge for drinks after 10pm. Venue management say it covers the cost of security and staff wages. Notice of the surcharge can be found on its drinks menus.

Kelly's on King general manager Brodie Parish said "It's actually been in place at every venue I've worked at over [the past] 10 years." 

Parish said it wasn’t so much the surcharge, but excessive surcharges that rankled customers. 

"I think what people are upset about is the degree of the increase … and the fact that it is not communicated," he said. 

Finance writer Joel Gibson told ABC Radio Sydney that while it is commonplace, he wasn’t comfortable with the practice. 

"The competitive market doesn't necessarily work freely after 10pm," Gibson said. 

"A table of people sitting at a pub at 10.05pm aren't likely to get up and go somewhere down the road just because the price has gone up 30 per cent. 

"The pubs know that they're onto a good thing." 

Meanwhile, the Australian Competition and Consumer Commission has encouraged concerned consumers to raise the issue directly with the business or lodge a complaint with a fair trading or consumer affairs agency.

"Under the Australian Consumer Law, businesses should not mislead consumers on the price of goods or services, including any unavoidable or preselected additional charges that might apply to the transaction," an ACCC spokesperson said.

"Businesses should strive to give consumers clarity and accuracy up front about the prices of their goods and services."

Jonathan Jackson, 17^th May 2023