Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

 

[Mark1]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

This is not America where wait staff are low paid. This is just greed.

 

[Pat T]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

On a recent cruise on one of the ships stationed in Aus. , the conditions stated that a $16 pp per day was charged to the account for staff ( bet the waiters and room staff didn’t get much). When I questioned it was told that Australians didn’t have to pay as it was not our custom, but any American on board would have to.

 

[Don’sown]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

If this is a worry then how about a surcharge of $10 plus for an online order from EatWell Chinese restaurant in Manly NSW with the food only costing $71:00. Then to make matters worse no food delivered as the Restaurant was closed after their online details said 10:00 pm closing. And be warned, make sure you check your bank accounts as we have somehow been hacked by some grub using my wife’s debit card ordering through UBER EATS, a service we never use.

 

[Plastic Druid]

US restaurant staff are, in general, not well paid, and rely on gratuities to supplement their income, so it has become standard practice there to tip generously. Restaurant staff in Australia are much better paid and this sort of price gouging is reprehensible. If you get good service, by all means tip the staff, but let's not follow the US on this one.

 

[Staffordshire Whippet]

If you're silly enough to eat at such a venue, pay by cash for everything but the surcharge. Then walk, quickly, out the door.

 

[elaine41]

No one ever tipped me for the work I did so why should I tip someone else for doing the job they applied for & got? It is not my job to pay their wages, that's the responsibility of the employer.

 

[Cattersfan]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

My daughter has worked in several high-end hospitality venues who purport to divide the tips amongst the hard working staff, but as yet she & any of her coworkers are yet to see any of it. One restaurant had an over sized brandy balloon on the counter, asking patrons to contribute to the staff Xmas function...the one they never, ever had. Also, how is it even possible to pay staff a minor gratuity from a credit card payment? I tip the staff, but only those who've made my night a good one!

 

[Luckyus]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

The first time I've heard of a discretionary payment meaning mandatory, the very word discretionary means it's my choice to tip someone if I think they have out of their way to make my dining out a great experience.

 

[Trudi]

I WILL NOT TIP STAFF IN HOSPITALITY!

NOT EVER!

 

[elaine41]

I WILL NOT TIP STAFF IN HOSPITALITY!

NOT EVER!

Me either. It is the employer's responsibility to pay them not mine.

 

[elaine41]

Does anyone tip the shop assistant for being really helpful? Or the nurse for really caring for you when you were ill in hospital? Or the doctor for diagnosing your illness & setting in motion the procedures needed to get you well again? Or the mailman for bringing your letters & parcels? NO. So why do hospitality workers think they deserve to be tipped just for taking your order & serving your meal? Why do you not go to the restaurant's kitchen & tip the chef? After all, he/she actually did all the work in preparing your meal.

 

[Shane/#]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

This is Americanised bullshit pay your staff the appropriate wages and then your price is set bloody Yanky system stick it where the sun don't shine

 

[POG]

Heading out for dinner with friends and family is one of the little joys that many of us look forward to, but recently it hasn’t been an entirely stress-free experience for some diners in Sydney.

One Sydney-based restaurant has sparked outrage from customers after adding an eyebrow-raising surcharge on their menu.

It all began when one social media user was considering dining at NOLA Smokehouse and Bar in Barangaroo until they noticed something in the fine print – a ‘discretionary 10 per cent gratuity charge’ would be added to the final bill.

‘Was considering dining here until I saw this nonsense,’ they said in a post on the social media forum site Reddit.

View attachment 19616

The diner shared their frustration over the surcharge. Credit: Burak The Weekender/Pexels

The Reddit post had other recent customers flocking to the comments section to share their experience, with many calling the charge ‘unreasonable’.

In one Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as ‘rubbish’.

‘It’s my option to tip or not if I’m happy with the service or not. Don’t force it on me,’ the customer wrote.

NOLA Smokehouse and Bar responded to their criticism, claiming the tip was to 'ensure all staff were fairly compensated for their work' and that it is a ‘standard practice in the hospitality industry’.

View attachment 19617

The disgruntled customer took to social media to vent their frustrations. Credit: Reddit

The original poster didn’t hold back on criticising the restaurant’s surcharge as well.

‘Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a “discretionary” 10 per cent gratuity. When I checked their Google reviews, someone mentioned it, and the venue responded by saying it’s MANDATORY and “is used to ensure all staff are fairly compensated for their work”,’ they wrote in their post.

Many social media users agreed with the original poster.

‘Isn’t it the employer’s job to ensure their employees are fairly compensated for their work?’ One asked.

‘Even just asking for tips is a 1-star rating on Google from me,’ someone else wrote.

‘No patience for companies trying to instigate this nonsense here. Paying staff is part of your costs, like paying for electricity and ingredients. It’s not my job to pay your staff,’ they added.

One social media user said: ‘If it’s the cost of doing business, then it should be reflected in the prices.’

‘Alternatively, the staff are paid correctly as per Australian law, and this is just a way to gouge more profit. It'd be interesting to talk to staff and see if this money is actually passed on to them,’ one more replied.

The responses by social media users had us wondering, is it even legal to charge this kind of surcharge?

According to the Australian Competition and Consumer Commission (ACCC), businesses are only allowed to add surcharges to their menus if they are clearly visible and communicated to customers.

‘Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,’ the ACCC said.

‘However, the menu must include the words “a surcharge of (percentage) applied on (the specified day or days)”, and these words must be displayed at least as prominently as the most prominent price on the menu,’ they clarified.

The ACCC also states that businesses should display the total price that includes taxes, duties and all unavoidable or pre-selected extra fees.

NOLA’s General Manager Clement Martin spoke with reporters regarding the term ‘mandatory’ in the menu, claiming that it had been misused and told everyone that it was optional.

‘This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant. As it’s discretionary, guests can ask for this to be removed from their bill at any time,’ he explained.

Mr Martin also stated that this opt-out tipping system was put in place during the pandemic as a way to reward workers during the ‘tough economic times’. However, he admitted that not all of the accumulated money went toward their staff, with 1.5 per cent going towards credit card fees.

NOLA's online menus also state that there is a discretionary 10 per cent gratuity that applies to all table service. But on its bar menu drink lists, it stated that a ’10 per cent service charge applies on all transactions’. As of writing, this fine print has changed to read that service charges and gratuities are discretionary.

Key Takeaways

• A Sydney diner sparked a heated debate online over a popular restaurant’s 10 per cent mandatory surcharge at NOLA Smokehouse and Bar in Barangaroo.
• The diner and other customers were frustrated by the 'discretionary 10 per cent gratuity charge' added to the final bill.
• NOLA‘s General Manager Clement Martin stated that the fee is not mandatory and was added during the pandemic to reward hard-working staff.
• The Australian Competition and Consumer Commission (ACCC) requires businesses to clearly display any surcharges on menus and urges customers to reach out in case of any hidden charges.

What do you think about this restaurant’s surcharge? Is it fair? Have you encountered something similar? Share your thoughts in the comments below.

With Covid, we all have gone through tuff times. This gratitude surcharge is nonsense. If you are happy with the service, you tip what you can afford and it goes to whoever has serviced you, not management. If you had terrible service, you don't tip. Before I book the restaurant, I ask if they apply a gratitude service charge, if they do, I don't book, but I let them know.

 

[Jarred Santos]

My daughter has worked in several high-end hospitality venues who purport to divide the tips amongst the hard working staff, but as yet she & any of her coworkers are yet to see any of it. One restaurant had an over sized brandy balloon on the counter, asking patrons to contribute to the staff Xmas function...the one they never, ever had. Also, how is it even possible to pay staff a minor gratuity from a credit card payment? I tip the staff, but only those who've made my night a good one!

How sad this is to read for those who do give out tips in the hopes of helping hardworking staff

 

[Granny*Deb]

I'm wondering why diners have to pay the 1.5% credit card surcharge. Basically means I'm paying for the pleasure in paying my bill with a credit card.
I do wish some group could check to see that 1) this money is made into cash and presented to the hospitality worker for the actual tip & 2) how many Christmas functions were paid for by the tip jar hmm I'll bet not many. I know neither my son nor daughter saw these so called delights.
Time has come my friends to hit up your ATM prior to entering the premises your party of eight Will be dining at. That way everyone can pay their portion of the bill in cash. Then if so desired you can leave your server something commensurate with their service.
That is fair and possibly the Australian way.
Think I'll stay home and have a good old knees up around my dining table where we just have a great night without worrying what sneaky fees will be attached, like a cocktail fee hmm instead the host is offered a genuine thank you and a hug.
Happy dining chums of mine

 

[mylittletibbies]

This is absolute garbage and I don't know why the ACCC even allow it.
As stated by others, you don't tip other people for good service, isn't that what they are being paid to provide,.or are we supposed to accept that crappy service is the norm and we must pay more if we expect good service.
Also having to pay extra on public holidays, etc. This cost should be factored in across the wage structure.
I can just imagine how long I would have stayed in business if I had told my clients that their products would be 10%more on this particular order because I had my workers manufacture it on a public holiday.
Wage costs are taken into account,across the board, including public holidays, when you work out your sale price.