Sydney restaurant angers diners over 3% gratuity
A Sydney restaurant has angered diners after placing a 3 percent gratuity on all bills.
While Italian restaurant Grana owner House Made Hospitality says the tip is optional, it failed to quell the outrage over compulsory tipping.
“If 3 per cent applies to all orders, just raise prices by 3 per cent. Considering how much this sh** pisses Aussies off, I’m surprised they would do this over such a small amount,” one Redditer said.
“I dunno why restaurants do this when all it does is irritate customers. Like they could just bump their food and beverage prices up a few per cent and not talk about it and everything would be fine,” said another.
“I am sick of these American style ‘gratuity’ and all hidden charges are creeping up in Australian food scene. Soon diners will be the one expected to pay for the wait staff’s livelihood, grrrrr,” said a third.
House Made Hospitality looked to placate diners by telling news.com.au, “the optional three per cent surcharge at Grana, communicated at multiple stages during the booking process and again verbally when the bill is presented, is designed to reward our team for their dedication and hard work.
“It also serves to incentivise exceptional service and support increased tenure within our industry.”
According to House Made Hospitality diners can request to have the surcharge removed at any time with “no questions asked”. It also said a 10 per cent service charge would replace the three per cent gratuity for groups of eight or more.
“Gratuities are managed through a third-party program, which we believe is the fairest approach, ensuring every dollar goes directly to the team working during that shift,” she said.
“Our goal is to deliver a memorable dining experience for our guests while rewarding our team for their efforts. However, we fully respect that not all guests may wish to pay the surcharge, which is why it remains entirely optional.”
Grana has further surcharges, including a 10 percent surcharge for Sundays and a 15 per cent surcharge for public holidays.
Critics believe the wording on Grana’s menus alludes to a compulsory gratuity.
Grana isn’t the only venue under fire for surcharges. However, under Australian Consumer Law a venue must make a single total price clear for goods or services – as long as they are transparent and clear about any additional fees or charges that may be imposed.
“Under the Australian Consumer Law, restaurants and cafes must display clear and accurate prices, and must not mislead consumers about their prices,” an ACCC spokeswoman said.
“Businesses must be clear and upfront about any additional costs such as surcharges that might apply, as well as when a charge is optional.
“Consumers that have concerns about the addition of charges can report the matter to their local fair trading or consumer affairs agency.”
A restaurant may breach consumer law if it fails to disclose extra charges.
Jonathan Jackson, 26th September 2024
