Outraged diner finds out there's a hidden fee for ordering this popular cocktail - Here's what you need to know

There’s nothing quite like sitting down to a nice meal with friends or family, sipping on your favourite beverage, and just enjoying some time away from your busy day-to-day lives.

However, as more and more restaurants across the country introduce changes to their operations, it has made dining out more costly and less enjoyable for many Aussies.



Not only is dining out getting more and more expensive, but the introduction of some QR code ordering systems — thanks to the restrictions imposed during the peak of the COVID-19 pandemic — have made tipping a default option in some restaurants and cafes when you buy something, and it is throwing patrons off.

What's more, as some diners recently found out, there's another way establishments may be attempting to increase their rates...and that's by stinging customers with a 'venue surcharge' that they may not be expecting or familiar with.

A recent customer of Venues' El Camino Cantina, a restaurant owned by dining group Pacific Concepts, has shared his outrage after he received his invoice recently, which clearly displayed an additional 6.5 per cent 'venue surcharge' on top of his already pricey menu item.


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The frustrated customer said that the 6.5 per cent 'venue surcharge', which set him back at $34.54 for a glass of cocktail, has turned him off from dining out. Credit: Twitter.




The customer, who had paid an astonishing $34.54 for a 700 ml Cadillac Mango Margarita claimed the surcharge made him much less enthusiastic about going out for a meal.

'Prices are already extremely high, then at the end they sting you with a 6.5 per cent venue charge, a credit card charge, and then they ask you for a tip,' he wrote.



'This should be all paid by the restaurant as an expense they provide… can't they claim that on tax anyway as a business expense?'

'I am appalled by how businesses really destroy customer confidence in going out for a meal.'

Do you agree with the shopper on this one? Do 'hidden charges' like this make you not want to go back?



Sadly, this customer was not alone in his shock over the 'venue surcharge.' What is worse, customers were also charged a tip before they had received any service!

In a post on Twitter, another disappointed customer inquired: 'I'm sorry, why is this restaurant charging a ‘venue surcharge’??????? Of 6.5%???????'

'So ‘Venue Surcharge’ is a new one on a restaurant bill,' another said.



However, a representative from the restaurant confirmed that 'all its restaurants required customers to pay a 6.5 per cent venue surcharge', claiming that it's now a standard practice in the industry.

The spokesperson said: 'Card processing fees and service charges are commonplace across the Australian hospitality industry and cover various costs incurred by businesses.'

'We are fully transparent about the charges, which are noted on our menus, websites, and receipts across all Pacific Concepts restaurants.'



It should be noted that the QR code payments in restaurants, which mandates patrons to tip their servers have received backlash from customers who called the practice 'un-Australian'.

Adam Glezer, a consumer advocate from Consumer Champion, objected to restaurants soliciting patrons for tips before they ever interacted with the employees.

Mr Glezer said: 'A tip is something you pay for good service, and it's optional.'



'In Australia, the waiting staff are paid a much higher wage than those in America, where they rely on their tips.'

'It sounds like Australian businesses are trying to Americanise themselves. There is no justification for paying a tip before a service is provided.'

Key Takeaways
  • Customers have expressed their anger over popular dining venues slinging them an unexpected 6.5% surcharge on top of pricey menu items.
  • A customer who had one cocktail at Pacific Concepts' El Camino Cantina was charged an additional $2.08 'venue surcharge' and additional 0.46 card processing fee.
  • Pacific Concepts confirmed all its restaurants required customers to pay a 6.5% venue surcharge and said it was 'standard' across the industry.
  • Consumer advocate Adam Glezer believes businesses should not ask customers for tips before they had any interaction with staff.



We previously covered a story about how Aussies view tipping culture and, unsurprisingly, many agreed that the practice is a way for some businesses Down Under to Americanise their operations.

So, members, it’s important to know what you’re signing up for before you sit down for your meal. Always check the menu prices, do your research, and read reviews before dining in a restaurant to ensure that you are comfortable with their rates.

Have you had an unexpected charge on your restaurant bill lately? Or what advice do you have for keeping costs down when you eat out? Share your experiences and tips in the comments below!
 
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And also the card fee. With less cash being used we all resort to cards. We know there is a card fee for the provider, but could they not include this in the price of the goods rather than adding it to an already high amount. Where are the complainers of supermarkets policies when these practices are occuring also.
You are right Terri. The credit card fee is meant to cover the charge imposed upon businesses by financial organisations. It is a standard (now) business overhead, which is recoverable in the retail price. Charging it as an extra cost is a scam. Unfortunately, businesses have embedded the practice at the retail level, and consumers have become coerced into paying it.
 

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