Have you ever looked at your cafe bill on a weekend and wondered why your coffee is more expensive than it was midweek?
Many of us will have paid Sunday and public holiday surcharges before, but they're becoming more common on your average weekend.
Extra charges can be frustrating — especially if there's no clear explanation around them or the service doesn't stack up.
We asked industry experts why businesses are using surcharges more frequently, and how they are calculated.
What is the reason for a surcharge?
Under consumer law, businesses are allowed to impose a surcharge if they're facing elevated costs on that particular day.
Sean Edwards, managing director of Cafe Culture Magazine, points out that costs have gone up in many areas of the hospitality sector.
"We've seen everything go up, from wage costs to superannuation to workers compensation, which adds … nearly 20 to 30 per cent on top of the payroll," says Mr Edwards, based at Port Macquarie/Birpai land on the New South Wales Mid-North Coast.
"Then things like electricity have gone up, [wholesale] coffee's tripled in price over the last 12 months.
"So, the costs are really, really big."
Chris Tate is the operations manager of a coffee-roasting business in North Ryde, New South Wales, on the traditional lands of the Wallumedegal people.
He says wages often equate to 35 to 40 per cent of total costs and those costs spike on weekends due to penalty rates.
"The surcharge is how venues can honour those award wages without cutting hours, lowering quality, or closing on weekends," he says.
"It's a direct link between customers wanting a weekend coffee and making sure the person behind the machine is paid properly."
Charging 'fairly' when there's no set surcharge
Weekend surcharges aren't about boosting profits, they're helping cafes survive, Mr Tate says.
"There's no strict percentage cap on weekend surcharges," he explains, but customers shouldn't be surprised when they go to pay.
He adds that charging fairly and communicating that to customers is key.
While state or territory regulations on the way surcharges must be displayed may differ slightly, under Australian Consumer Law, businesses must:
- Clearly disclose any weekend or public holiday surcharge before customers place an order.
- Display the surcharge notice on the menu in a clear, easy-to-read format, either as a percentage or by stating that prices include the surcharge.
- Avoid misleading pricing by ensuring surcharges aren't hidden in the fine print.
That means displaying it on printed menus, digital ordering pages, or signage and making sure it's easy to read.
"Anything misleading could breach ACCC (Australian Competition and Consumer Commission) guidelines," says Mr Tate, "so clarity is key".
"Most customers are understanding when you communicate openly and respectfully."
Are some cafes price gouging?
Mr Edwards believes it would be rare that a cafe is price gouging.
"I think at the moment everyone's in a tight spot," he says.
"There's a lot of real costs, and I think people have just got to relate it back to their own lifestyle and their own house and the cost they're feeling as well.
"If you're going to go out and enjoy our great coffees and our great food that our cafes offer, you do have to pay for it."
Mr Tate says the surcharge only works when it's paired with a great experience.
"If a customer is paying a little more … they should get more in return such as better service, delicious coffee, and a warm, welcoming atmosphere."
Customers who believe they've been hit with undisclosed surcharges can make a complaint with their local fair trading or consumer affairs agency.
