Eateries fined for pricing offences


THE nation's consumer watchdog hopes the hefty $13,200 fines imposed on two New South Wales restaurateurs yesterday sends a clear message to the restaurant and cafe industry in Australia: stop flouting anti-surcharge laws.

More than a year after public holiday and weekend surcharges were banned, a plethora of eateries are still breaking the law by failing to tell customers the full price they would pay on a Sunday or a public holiday, relying instead on a qualification indicating the application of a percentage surcharge.

The old practice of charging about 10 per cent extra on public holidays and weekends was banned in May last year through an amendment to the Trade Practices Act. Eateries are now required to include such surcharges in the price.


To comply, many eateries are producing a separate weekend menu to cover the higher costs on weekends or public holidays.

John Hart of Restaurant and Catering Victoria supports a reversal of the anti-surcharge laws for cafes and restaurants.

''At the same time we are being forced to pay penalty rates on the weekend, they come out and make surcharging difficult,'' he said.

Mr Hart pointed to a recent report by the Productivity Commission, which has called for the rules to be reversed for eateries because of the extra costs and complexities for small businesses.

But Australian Competition and Consumer Commission boss Graeme Samuel said despite the Productivity Commission's recommendation it is still a law and he warned restaurateurs that those who flouted it would be hit with hefty fines.

The Federal Court ordered two restaurants, Georges Bar and Grill and Steersons Steakhouse, both in NSW, to pay a penalty of $13,200 each for breaching the pricing laws. It was the first time a court has ordered civil penalties.

Earlier this year, the ACCC surveyed a number of eateries and found a number of menus did not comply. Restaurants that failed to change their menus after a warning were given $6600 infringement notices.

Instead of having a separate menu for weekends and public holidays, restaurateur Matteo Pignatelli kept one menu and has scrapped surcharges altogether. ''I have built the surcharges into the standard menu,'' he said. ''When someone dines here on a Monday, then comes on the weekend with their families, they can see it's the same price.

Mr Pignatelli said it had been a difficult change for restaurants that run on lean margins and have heavy Sunday and public holiday trade.

Public holiday and weekend surcharges were banned? Why does the government keep interfering with businesses like this?

Yes they can Jas, as one of the owners in the story has.

You put your new rate between the normal rate and the weekend rate, and there you have it. One flat rate.

"The old practice of charging about 10 per cent extra on public holidays and weekends was banned in May last year through an amendment to the Trade Practices Act. Eateries are now required to include such surcharges in the price.


To comply, many eateries are producing a separate weekend menu to cover the higher costs on weekends or public holidays"i

So where's the problem - in having the the menu price matching the charged price ?

Most restaurateurs around here run two seperate menus, one price list for normal rate days and another for penalty rate prices.  Personally I'd sooner whack 10% on everything and save the agro.