‘They should investigate restaurants’: Why pay more when this Coles item costs $1?

A recent incident involving a seemingly innocuous $3.50 surcharge has sparked a heated debate about the fairness of restaurant pricing.

This incident is a reminder to be vigilant about the potential hidden costs that can inflate their dining bills.



A group of Sydney diners were left astounded when they discovered an additional $3.50 charge on their $235.99 dinner bill for chopped chilli, a common condiment in many Asian restaurants.

The group had enjoyed a meal of fried rice, duck, dumplings, and bao, but the unexpected surcharge for a simple ingredient—which they said could be purchased for a mere dollar at Coles—supermarket left a sour taste.


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A group was surprised by the surcharge for chopped chilli. Credit: @privatepolicy85 / Reddit


Roberta Crouch, a Professor of Business Management from Flinders University, expressed her disbelief at the surcharge.

She stated that while it's understandable for restaurants to charge extra for premium add-ons like truffles, caviar, or saffron, charging a premium for ‘chopped chilli you can pick up at Coles for a buck’ is simply 'ridiculous'.

‘$3.50 for some chopped chillies? I don’t think so. It’s not even airport prices, right, where you have to pay $10 for a bag of chips?’



The hospitality industry is grappling with rising costs across the board.

According to the latest data from the Australian Bureau of Statistics (ABS), costs have surged for food (4.6 per cent), non-alcoholic beverages (4.2 per cent), alcohol (10.7 per cent), and electricity and gas (12.9 per cent).

While Crouch sympathised with the struggles of the hospitality industry and should be ‘cut a bit of slack’, she warned that such surcharges could backfire.

She also thought that things were only going to get ‘crazier’.

‘When people do stuff like that, what they're trying to do is punish you out of asking,’ she said.

‘When organisations use prices like this, they're saying: “We don't want to do this, and if you want us to, we'll make it so expensive for you that you won't do it again.”’

The ABS reports that many Australians feel the cost-of-living crunch and are pulling back on spending.

If consumers feel they are being overcharged and decide to cut back on dining out, it could spell disaster for an industry already on the brink.

'The food and beverage sector, unfortunately, is likely to experience higher rates of business failures over 2024,' Anneke Thompson, Chief Economist at CreditorWatch, warned.

'The business failure rate in this sector is already the highest across all sectors, at 6.7 per cent as of November 2023.'



While Crouch emphasised the importance of restaurants being mindful of what they charge extra, the dissatisfied diner faced unexpected criticism.

In a previous story, an Australian couple were outraged after seeing a ‘ridiculous’ hidden surcharge on their bill.

They were bewildered after learning they had to pay an unusual surcharge for a service they didn’t even request. You can read more about it here.

The incident also highlights the ongoing scrutiny of supermarket pricing.

Supermarkets like Coles and Woolworths are currently under investigation by the Australian Competition and Consumer Commission over allegations of price-gouging.

‘After supermarkets, they should investigate Sydney restaurants,’ the Sydneysider wrote on social media.

‘We got charged $3.50 for some chopped chillies.’



Some individuals facing increased expenses doubted the validity of their complaints about a minor additional fee, especially considering their ability to spend $80 on duck and $45 on fried rice.

‘It always amazes me, if things are so tight and money is hard to come by, why whinge when you spend $236 on a meal?’ one person wrote.

‘You can’t be too short of cash if you can afford to spend that amount of money on a meal.’

‘Chooses to eat out, spends $200+, compares that to groceries where people have no choice, either pay or starve,’ another said.

‘[A] little tone deaf.’
Key Takeaways
  • An Australian diner expressed outrage over a $3.50 surcharge for chopped chilli at a restaurant, an item that can be bought at Coles for a dollar.
  • A retail expert warned that such surcharging practices in the hospitality industry could intensify despite rising business costs.
  • The incident highlights the broader issue of surcharging and how it may affect consumer spending, particularly during a time when many are feeling the pinch of increased living expenses.
  • The food and beverage sector faces substantial challenges with predictions of higher business failure rates in 2024, as customers may cut back on dining out due to feeling overcharged.
Have you encountered similar surcharges when dining out? Share your experiences in the comments below.
 
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I suppose eating out had to play catch up by one means of another. Coming out of the corporate sector involving shopping centres, commercial and carparks I know first hand why costs have to be reigned in. Like ordinary house owners, these businesses have had huge running increases over the past 2 years. Rental increases, material increases including foodstuffs, increases in insurances and increases in staff wages to name but a few. Perhaps the restaurant should have merely factored this service into the overall menu pricing and the consumer would be none the wiser. $1 at Coles is fine but when you have to use labour, time and vehicle costs to buy the '$1' item it seems acceptable. When we go out to a quality venue we expect to pay way more than picking up items from our local supermarket and DIY it.

Get over it.
 
Anything that require labour these days, comes with additional charging especially in small business. Went to our local Thai restaurant and decided to pay cash, and $4.00 came straight of the bill. I am finding this in a lot of places these days, but no-one complains about that.
 
My beef about extra charges is the surcharge of "corkage". I recently joined a large group at a new local Italian restaurant offering 50% off on a set menu. We all knew exactly what we had to pay yet when the bill came we had each been charged $6 corkage. $6 to twist the top off the bottle and place it in an ice bucket is ridiculous.
 
Poor things must be hard for them to go out to tea....and omg have to PAY for a chopped 🌶 the professor should have no problem with that...but wait there's more.....why is the professor weighing in on this to start with? Sounds like she is trying to convince herself that a business is not there to cover costs.....nor to make a profit ...e.g. the person who chopped the chilli, the board bought to chop it on, the knife to chop it, sharpening the knife...oh dear I really do NOT think the professor thought about her answer🤣🤣🤣🤣🤣🤣
 
My beef about extra charges is the surcharge of "corkage". I recently joined a large group at a new local Italian restaurant offering 50% off on a set menu. We all knew exactly what we had to pay yet when the bill came we had each been charged $6 corkage. $6 to twist the top off the bottle and place it in an ice bucket is ridiculous.
Seriously love stop drinking if that offends you so much...🤣🤣stay at home and do it yourself.🤣🤣
 
sensationalist headline implies it's Coles that was the culprit. Don't leave a tip in response to surcharges, but make sure that's pointed out to the owner of the business. Also make sure you mention it's the last time they ever get a cent of money from you.
 
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My beef about extra charges is the surcharge of "corkage". I recently joined a large group at a new local Italian restaurant offering 50% off on a set menu. We all knew exactly what we had to pay yet when the bill came we had each been charged $6 corkage. $6 to twist the top off the bottle and place it in an ice bucket is ridiculous.
and supply, clean and replace glasses that also have a high breakage or expectation of clean glass when going from white to red. Corkage is and should be an acceptable fee.
 
So you can afford over $200 for a dinner but don’t want to pay the wages for someone adding chopped chilli to your order. Go and get it yourself from Coles and add it at the table. All costs at a restaurant includes portion of wages, rent, insurance, etc etc.
 
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This isn’t about a meal but I had not been out for a long time and paid for anything. I went to the hairdresser after being told it would be $45.00 for a haircut. She did not even wet my hair. I paid by my c.c not thinking anything more about it. On checking my receipt I found a charge of 75cents on it but can you tell me why.
 
I have a mobile ice cream van and I try to keep my prices as low as possible I buy dipping Chocolate 15 litre bucket which cost $129 they just put the price up to $169 then the following month the price is going up to$214 that's around 95% price hike in 2 month right before Christmas is this legal thank you ? I wonder how much you are going to put your Easter Eggs up to





be
 
I have a mobile ice cream van and I try to keep my prices as low as possible I buy dipping Chocolate 15 litre bucket which cost $129 they just put the price up to $169 then the following month the price is going up to$214 that's around 95% price hike in 2 month right before Christmas is this legal thank you ? I wonder how much you are going to put your Easter Eggs up to





be
Don't know where you are, but 15kg Cadbury dipping chocolate $106.00 online at Distributors Central Coast confectionery.
Maybe need to find a new supplier.
 
We are always charged for a small dollop of mustard when ordering steak. We can buy a whole jar for less at any supermarket.
 
I wonder how that little 🌶️ got all the way from Coles, (oh I didn't come from Coles, I came from a supplier) onto the plate. Then get washed and chopped up and onto a diner's plate.
The professor of business management clearly doesn't know the markups that are used in running a restaurant. They are there to make money. 🤔
 
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and supply, clean and replace glasses that also have a high breakage or expectation of clean glass when going from white to red. Corkage is and should be an acceptable fee.
Not $6.00 EACH for a large group of people as stated.
 
If the price of CHOPPED CHILI was not on the menu as "extra" then I would not be paying it.
I think it is not legal to charge for anything that is not displayed as either a standard cost or an additional cost. The same as displaying at the bottom of the menu, "additional 10% applies during holiday periods" etc.
Even SUBWAY have a list of "extra costs" displayed on their menus and if you ask for one, they ALWAYS say "that will be extra".
 

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