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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Aussies froth over sky-high coffee prices and card surcharges during public holiday. Why? It's their choice to go Have a coffee somewhere away from home. Why blame the owners of these establishments as they are not charities. The blame lies with your beloved govt forcing these rules​

 
  • Haha
Reactions: NotNats
Are these are the same establishments whinging about counterfeit $50 and $100 notes? Well news for you, buddy. Your price gouging is no better than that of the major supermarkets. Just taking on a different form.

By the way....I don't drink coffee.
 
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Reactions: Mark1
We were charged 15% extra at a fish and chip shop that would have been open anyway, but they weren't paying the young people extra, I asked.
RobboIt it is IILLEAGL under several Industrial Relations laws to underpay ANY staff employed on the books and on a public holiday regardless of how old they are. The penalty rate is double time and a half which under the hospitality and Fast food wards is anywhere from $29.04 an hour for a 16 year old to $60.20 for an adult serving coffee and clearing tables. That's if you can get the staff to work.

As regards the credit card surcharge the small businesses have been paying this on your behalf for the past 40 years so the fact that they are now allowed to pass it on is only recent and yes the businesses are not supposed to charge more than the BANKS charge them. One way to avoid this surcharge if you don't like it is to pay cash which is STILL legal tender here in Australia. If your local coffee shop wont accept cash then find a business who will.

Sorry I'll get off my soap box but I am sick and tied of those who have NO IDEA OR EXPERIENCE trying to make ends meet in small business bitching about how they are being ripped off.
 
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I'd say, it's time to get the Thermos out and take a Coffee from Home and sit in some nice Place ,Cafes are struggling immensely with the Cost of Staff, the cost of Produce ,high Taxes ,Covd Visa restrictions reduce for Cafe Staff also ,Public Holiday Wages etc
 
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Reactions: RieTreesSilver
Funny thing I noticed yesterday when I went to a large shopping centre, for the first time in months, and sat down in the French Patisserie - eye-watering prices for unbelievably good Danishes, baguettes and coffee - packed out with, apart from 3 people, over 70's (best guess) having a jolly time.
 
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Reactions: Babbie
"he was not expecting the 15 per cent surcharge that was tacked onto his bill, along with an additional fee for using his card."

NEWSFLASH: Businesses have applied a Public Holiday surcharge for at least 50 years that I can remember.
The additional fee for using card, however, in these days of the lunatic push toward Cashlessness, is just opportunistic bullshit.
 
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Reactions: Macarj
I live in Cairns and we've had a number of restaurants and cafe's add on a 'weekend' surcharge, along with the 'credit card' surcharge. Money gouging is happening from every angle. I now call cafe's prior to visiting and ask if they have ANY surcharges AND if they accept cash, then make my choice from there...
 
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Reactions: Macarj
RobboIt it is IILLEAGL under several Industrial Relations laws to underpay ANY staff employed on the books and on a public holiday regardless of how old they are. The penalty rate is double time and a half which under the hospitality and Fast food wards is anywhere from $29.04 an hour for a 16 year old to $60.20 for an adult serving coffee and clearing tables. That's if you can get the staff to work.

As regards the credit card surcharge the small businesses have been paying this on your behalf for the past 40 years so the fact that they are now allowed to pass it on is only recent and yes the businesses are not supposed to charge more than the BANKS charge them. One way to avoid this surcharge if you don't like it is to pay cash which is STILL legal tender here in Australia. If your local coffee shop wont accept cash then find a business who will.

Sorry I'll get off my soap box but I am sick and tied of those who have NO IDEA OR EXPERIENCE trying to make ends meet in small business bitching about how they are being ripped off.
Agree. We had a coffee shop and absorbed the eft cost. No extra charge for non milks, and no charge for tom sauce. And did not charge extra for public holidays, unless you were an arse$hole customer 😁.
Certainly would be different now for us.
 
The only way to change this is to stop buying these over priced items. The more people who pay up, the higher prices will get. Same as housing and rent. While people pay, the price will go up.
 
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Reactions: Macarj
The only way to change this is to stop buying these over priced items. The more people who pay up, the higher prices will get. Same as housing and rent. While people pay, the price will go up.
The problem there is that coffee is not a necessity, paying rent however is much different.
 
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Reactions: Babbie
"he was not expecting the 15 per cent surcharge that was tacked onto his bill, along with an additional fee for using his card."

NEWSFLASH: Businesses have applied a Public Holiday surcharge for at least 50 years that I can remember.
The additional fee for using card, however, in these days of the lunatic push toward Cashlessness, is just opportunistic bullshit.
Not so. This cost was always included in the cost of the goods. Now they charge extra, but the price of the goods hasn't gone down. It is price gouging.
 
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Reactions: LeahI
Agree. We had a coffee shop and absorbed the eft cost. No extra charge for non milks, and no charge for tom sauce. And did not charge extra for public holidays, unless you were an arse$hole customer 😁.
Certainly would be different now for us.
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.
 
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
 

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