Sunday surcharges for fine dining restaurants
With the debate about penalty rates now in full swing, top restaurants are now introducing a Sunday surcharge.
Chris Lucas has slapped on a Sunday surcharge, an extra 10 per cent on diners; bills, at his restaurants in his group including Chin Chin, Kong, Baby and Hawker Hall .
He says diners who noticed it have been supportive. They don’t mind paying extra.
One reason why many fine dining restaurants are heading down this direction is because the Fair Work Commission left the top end restaurants out of its decision to cut penalty rates.
Lucas says the decision to go with a surcharge predated the Fair Work Commission ruling.
“We made the decision many months ago and we have been considering this for quite some time,” Lucas told the Sydney Morning Herald.
“It just got to the point when we couldn't afford to continue to operate on Sundays and public holidays, we were left with no choice."
With his restaurants employing 500 people, Sunday is one of his busiest and costliest days.
"[Opening on a Sunday] was uneconomic for years, ever since the award system got rejigged, we just absorbed it for many years and with all the rising costs it became unsustainable," he says.
He said he expected more Melbourne restaurants will be doing it, bringing them into line that’s common in Sydney.
According to John Hart, chief executive of Restaurant and Catering Australia, restaurants have to go down this direction because of the decision of the Fair Work Commission.
He estimates that 15 per cent of restaurants are already doing it.
"It's not a huge number, but it is rising," Hart told the Sydney Morning Herald. "There is still a very high cost base for Sunday penalty rates and even a surcharge of 40 to 50 per cent would not cover the additional cost of employing staff on a Sunday."
by Leon Gettler, March 16th 2017
