Café's $1 surcharge draws mixed reaction—sneaky move or necessary cost?

In the land down under, where the coffee culture is as robust as a finely brewed espresso, a Sydney café has stirred up a storm in a teacup over a $1 surcharge that's left customers with a frosty reception.

The Woodland Café, nestled in the heart of Sydney, has been the centre of a heated debate after imposing a $1 charge on customers who prefer their drinks without ice.

The cost-of-living crisis has sharpened Aussies' focus on their expenditures, and unexpected surcharges are being scrutinised more than ever.


The Woodland Café explained that the surcharge is due to the need to use more juice to fill the cup when ice is omitted.

They argue that ice typically occupies about one-seventh of the glass's volume, and without it, they're pouring more product into each drink.


1725511775465.png
Australian café defends a $1 surcharge for drinks without ice, citing extra juice required. Credit: Facebook


The juice costs $7, and the café has been transparent about the charge, listing it clearly on the menu.

However, this has kept some customers from feeling that the surcharge doesn't quite pass the 'pub test.'

The debate has spilled over onto social media, with comments ranging from supportive to outraged.


‘Ice costs restaurants and cafes money. Some have expensive ice machines, and they make it themselves.’ one wrote.

‘Others buy ice...If you don't want ice, you're saving the cafe money. It should even out,’

‘It's a sneaky charge, I agree. Sneaky either way and cafes get away with these sneaky charges because customers don't ask or challenge them,’ another customer echoed.

‘You are technically getting more juice, but wow. That's crazy. I have never seen that ever,’ a third person added.

‘It's gross. They are charging more than enough to cover their costs. Do not normalise this. Would two ice cubes be sufficient ... without the cost?’ a different person chimed in.


On the other hand, many have defended the café, acknowledging that the extra juice adds up and that businesses need to cover their expenses.

The hospitality industry faces a tough climate, with venues closing alarmingly.

Customers are tightening their belts as inflation remains high, and business owners are feeling the pinch with rising rent, supplies, and wage costs.

A recent report from CreditorWatch has painted a grim picture, forecasting that one in every 11 hospitality businesses could close their doors for good in the next 12 months.

With such a challenging backdrop, the industry has been cautioned about the surcharges it applies.


Sandy Fitzgerald, a senior lecturer in marketing at RMIT, has advised that additional costs during tough financial times can permanently drive customers away.

‘Businesses argue that surcharges keep their doors open because the operating costs of running a business on certain days are higher (mainly wage-related),’ she said.

‘However, many people have criticised restauranteurs for charging exorbitant surcharges yet failing to deliver good service experiences.’

‘In turn, customers avoid dining during these periods, meaning less income for the business.’

She suggested that businesses examine their operating costs and find creative ways to improve profit margins rather than relying on surcharges.

This isn't the first time a café has been in the spotlight for unusual surcharges.


Earlier this year, another café charged a customer $1 to warm a muffin, and a Perth café added a 90-cent fee to toast a sandwich.

A Melbourne business even implemented a 10 per cent 'peak season surcharge' during the busy December-January period.

A café customer in Melbourne was taken aback when a 15 per cent surcharge was added to the price of his cappuccino on a public holiday, plus an extra fee for using his card.

Outraged customers took to social media to voice their concerns, questioning the reason behind such steep surcharges. You can read more about it here.
Key Takeaways
  • An Australian cafe has defended its decision to impose a $1 surcharge for drinks without ice, attributing it to the extra juice needed to fill the cup.
  • Customers have expressed varying opinions on the surcharge, with some calling it out as 'ludicrous' and 'sneaky,' while others acknowledge the cost implications for the cafe.
  • The cost-of-living crisis and high operating costs in the hospitality industry impact consumers and business owners, leading to closures and careful consideration of applied surcharges.
  • Experts suggested restaurants should examine operating costs and think creatively to improve profit margins rather than relying on surcharges to balance their finances.
Have you encountered similar surcharges at your local eateries? We invite you to share your thoughts and experiences in the comments below.
 
Sponsored
Our local Coffee Club changed owners and now they don't do Seniors Discount on a Saturday 😠
so...dont use them..try local service stations ..serving a pretty good brew..less than half the price, only they dont have tables and chairs..../.......YET
I get a surcharge on public holidays, as long as the staff are being paid properly for having to work while the rest of us enjoy a day off. But some of these surcharges are a total rip off. I understand times are tough for cafe owners but times are tough for everyone atm.
not many of these companies pay their staff extra on public hols...my locals dont
 
I get a surcharge on public holidays, as long as the staff are being paid properly for having to work while the rest of us enjoy a day off. But some of these surcharges are a total rip off. I understand times are tough for cafe owners but times are tough for everyone atm.
THEY. ARENT, I PROMISE YOU
 
I always ask for no ice and have never been charged extra. Might be changed now that the trend has started. As for coffee, I rarely buy a coffee, can’t see the point when I can have one at home. Saying that when I do buy one I love the froth on top, trouble is if you order takeaway you never get a spoon, a lot of places don’t supply spoons anymore with any drinks. How am I supposed to eat the froth off the top without a spoon, it is hard to lick it up with my tongue since I’m not a cat? I now have some disposable spoons in my car for coffee stops.
 
I understand in order to have a business then every business has to make a profit. However, I think if service businesses are going to put the prices up to cover weekends or public holidays then the prices should be set across the board so that the extra cost of being open during these days are covered. I do not see why those who support cafe's during the weekend and public holidays should be slugged. These are the customers who are supporting these businesses, and these businesses are penalizing those who support them. Unless these surcharges are nothing more than profiteering and price gouging.
 
  • Like
Reactions: natalielocket
The pubs & clubs always hated me even back in the early days. But the staff got used to me very quickly from the late 70's and even now, as I always stated NO ICE Please. Also had no problems with my drink due to the heat. Drinks never lasted long enough to go warm.
Same. I get a ginger beer or cider, and ask no ice. If they put ice in or insist I have to have ice. No thanks. I am the customer and I will have and pay for what I asked for. They then have to comply. And I make sure they don`t charge extra. Especially when away from home.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

Latest Articles

  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×