Aussies froth over sky-high coffee prices and card surcharges during public holiday

As the cost of living continues to rise, Australians feel the pinch in their daily expenses. From essential commodities to leisure activities, the impact of inflation is evident across various aspects of daily life.

One such example can be seen in the ordeal faced by a coffee aficionado who was left with a bitter taste in his mouth—not from the espresso—but from the eye-watering price tag that accompanied his medium almond milk cappuccino.

This trend reflects broader economic shifts and underscores the challenges faced by individuals and households in managing their finances amidst inflationary pressures.


The humble cappuccino, a staple in the daily lives of many Australians, became the centre of a heated debate this King's Birthday public holiday.

Upon visiting a local café, the customer, identified as David, was prepared for a slight uptick in price due to the public holiday.

However, he was not expecting the 15 per cent surcharge that was tacked onto his bill, along with an additional fee for using his card. The total? A steep $8.18 for a coffee that he described as ‘average’ at best.


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A Melbourne café customer was surprised by a 15 per cent surcharge on his cappuccino during a public holiday, along with an extra card fee. Credits: Tiktok / @thebearded86


‘Don't get me wrong, I know almond milk costs extra, but I think 15 per cent is excessive,’ he explained.

‘The café was full! People were outside. And there weren't that many staff. So, whilst I acknowledge they need to pay penalty rates, I thought it was excessive.’


David's experience sparked a frothy debate among Aussies online. Some sympathised with his sticker shock, sharing their experiences of exorbitant coffee prices, with one person claiming to have paid a whopping ‘$9.50 in Canberra’.

Quips flew as fast as espresso shots, with one commenter jesting, ‘Did they fly it in from Italy?’

‘Did they grow the coffee beans in front of you?’ another jokingly asked.

A third suggested, ‘Better coffee at 7 eleven for $2.’


Yet, not everyone was quick to decry the café's pricing. Some coffee drinkers pointed out the reality of running a small business, especially on a public holiday when staff are entitled to penalty rates.

‘The person that served you gets paid $50+/h today,’ one commenter noted, highlighting the costs that business owners must cover.

‘The price might seem a bit much, but I am not sure what the café owners can do about it,’ another said.

‘People forget takeaway coffee is a luxury, not a necessity. For cafés to make a profit, they're going to have to raise their prices, unfortunately,’ a third explained.

However, David responded, saying, ‘I get it. Although it was packed. People everywhere. Outdoors. Footy was also on. They knew how to milk it.’

To compound the issue, when questioned about whether the coffee was a ‘ten out of ten’ at least, David responded, ‘Nope,’ and rated it as ‘average’.


Although surcharges during public holidays or weekends to cover higher staff wages are not rare, consumer advocate Christopher Zinn noted that certain Australian establishments are imposing fees as high as 20 per cent.

While a surcharge of 10 to 15 per cent is customary, the Australian Competition and Consumer Commission (ACCC) emphasised on its website that establishments should clearly display these costs to customers.

‘If they charge such a surcharge, they must include these words on the menu: A surcharge of [percentage] applies on [day or days],’ it stated.

In Australia, businesses are not subject to a legal cap on the surcharge amount they can impose, and they have the discretion to establish fees for customers who use cards.

However, the card surcharge must not exceed the actual cost incurred by the business to process that particular payment method.


As the cost of living continues to escalate, Australians are grappling with the financial implications of inflationary pressures on their daily expenses.

One area of concern is the rising cost of goods and services, including the price of coffee, as highlighted by David’s ordeal.

However, the financial strain extends beyond just the cost of goods, with consumers also facing additional charges such as card surcharges.

These surcharges, coupled with the already inflated prices, compound the financial burden for many Australians, prompting them to reassess their spending habits and seek ways to mitigate these escalating costs.
Key Takeaways
  • A café customer in Melbourne was shocked by a 15 per cent surcharge added to his cappuccino price on a public holiday, along with an additional fee for using his card.
  • Customers expressed their outrage on social media, with some questioning the justification for such high surcharges.
  • Public holiday and weekend surcharges are legal in Australia without a limit, but businesses must display the surcharge clearly.
  • Despite the high cost, the coffee was described as ‘average’, highlighting the consumer's disappointment with the value for money.
What are your thoughts on public holiday surcharges? Have you ever been taken aback by the price of your coffee on a public holiday? Do you think these surcharges are justified, or do they leave a bitter taste in your mouth? Share your experiences and opinions in the comments below!
 
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The solution is very simple, don’t go to the places that are charging those prices. We managed very well without these places in the past and can do so now. If you’re going to keep paying they will keep charging. Simple really
Yep, it should be included in the mark-up on everything you sell. That is how the larger retailers do it, and so should the smaller ones, no matter if it getting your car serviced, buying petrol, etc. It's about time the ACCC told this to retailers, much the same as the GST is included in the price of the goods.
Its not the retailers who are at fault it is the Banking system. Credit card fees are charged for the provision of plastic money and have been since the introduction of credit cards over 40 years ago! Its just in recent years that politicians have passed LAWS to allow businesses to recover those fees - now much cheaper than the were in years past. So who is going to ask multi- national businesses like Mastercard and Visa and the big banks to not charge for their services. The other alternative is really simple USE CASH or avoid those business YOU believe are overcharging.
But don't be surprised if more and more small and medium business close in the next few years as all these wage increase and HR requirements are costing not only money but time and energy that most small business (over half Australian businesses) don't have. Are you willing to not be able to do your regular shop because the shop owner and staff have to do "a mental heath & well being course for the coming week". Who pays for it the business owner, not the Government and NOT THE UNIONS. Remember there are ALWAYS two sides to every story and someone always pay, normally the person least able to push back.

sorry for my rant
 

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