Melbourne restaurants quietly adopt Sydney-style group surcharges
A dining fee long established in Sydney is gaining ground in Melbourne, with a growing number of restaurants now applying a 10 per cent service charge to group bookings.
Several prominent Melbourne venues have introduced the levy, including Attica, Rockpool Bar and Grill, Reine and La Rue, Coda, and independent Brighton restaurant Bottarga. The charge typically kicks in for parties of six or more, though thresholds vary by venue.
Bottarga chef and co-owner Federico Bizzaro introduced the fee six months ago for groups of seven or more after relocating to a larger premises. He told the Herald Sun:
"Everything is super tight at the moment. We have to be really careful when we make decisions like this, because the margins are very thin."
Bizzaro said the operational demands that larger groups place on both kitchen and floor staff were the reason for the charge. "We may need extra staff to service the group, or if they all order a la carte we'll need more people in the kitchen," he said. "(Our policy) is extremely reasonable for what's around."
Bottarga co-owner Hemmawan 'Somi' Paremanee said the surcharge was a survival tool for small businesses amid the ongoing cost-of-living crunch. "Costs across wages, produce, rent, utilities, insurance, compliance, and quality ingredients have all increased significantly," she told the Herald Sun, adding that for larger tables, "more planning and a higher level of service" is required to deliver a smooth dining experience.
Not all Melbourne hospitality groups have followed suit. Andrew McConnell's Trader House Group — home to Gimlet, Cutler and Co., and Cumulus — has not introduced group surcharges, nor has the Lucas Collective across its portfolio of Melbourne venues including Chin Chin, Kisume and Society.
Lucas Collective's general manager of brand and communications, Celia McCarthy, drew a clear cultural distinction between the two cities, telling the Herald Sun: "Group surcharges have historically been more common in Sydney, where they've been part of the hospitality landscape for more than a decade. In Melbourne, we've never implemented the practice, as the expectation and dining culture is quite different."
Australian Restaurant and Cafe Association chief executive Wes Lambert described the shift as inevitable. "It's certainly old hat in Sydney, and other cities around Australia," he said. "With the vibrant food culture in Melbourne, and the discerning customer, we have certainly slowed its roll out. However, diners can expect this to become norm, as their favourite cafes and restaurants struggle to stay open."
Lambert also shed light on why operators are reaching for surcharges rather than adjusting their menus: "Businesses are reluctant to raise overall menu prices and are attempting to recover skyrocketing wages and cost of living expenses by implementing levies and surcharges where they can."
Under Australian consumer law, all additional surcharges must be declared on a venue's website or menu prior to dining.
Jonathan Jackson, 21st May 2026
