If you’ve dined out in Sydney on a public holiday, you may have noticed a small surcharge added to your bill. This is a common practice across Australia, but many diners still wonder: is it legal, is it fair, and how much should you expect to pay? Here’s everything you need to know about public holiday surcharges when eating out in Sydney.
What Is a Public Holiday Surcharge?
A public holiday surcharge is an additional fee—usually between 10% and 15%—applied to your total bill when dining at a restaurant on a public holiday. It’s intended to help businesses cover the higher operating costs associated with these days, particularly increased wages due to penalty rates under Australian employment law.
The surcharge is not a service fee or a tip. It’s a set percentage that should be clearly displayed on the menu or signage so diners are aware before ordering.
Why Do Restaurants Apply a Public Holiday Surcharge?
Running a hospitality business on a public holiday is often more expensive than on a standard day. Staff are legally entitled to higher pay rates, known as penalty rates, and many restaurant owners also face additional challenges such as:
- Increased demand and the need for more staff
- Higher utility and supplier costs on non-standard days
- Managing rostering and reduced availability of workers
To remain viable, especially in an industry with tight margins, restaurants apply a surcharge to help offset these costs. It allows them to open on holidays without taking a financial hit.
How Much Can You Expect to Pay?
The amount of surcharge can vary, but these are the most common figures:
- 10% surcharge – Common in cafés and casual dining venues
- 15% surcharge – More typical at fine dining restaurants or during dinner service
- Fixed amount per person – Some venues may charge a flat fee (e.g. $5 per person)
It’s worth noting that not all restaurants charge the same amount, and some may choose not to apply a surcharge at all.
Are Restaurants Required to Display the Surcharge?
Yes. According to NSW Fair Trading and the Australian Competition and Consumer Commission (ACCC), restaurants must clearly inform customers of any surcharges before they place an order. This typically appears:
- On printed or digital menus
- On signage at the entrance or counter
- On the restaurant’s website or booking platform
For example, a well-regarded restaurant in Sydney may state its public holiday surcharge details on its menu and website to ensure full transparency with guests.
If a surcharge is not disclosed and appears unexpectedly on your bill, you are entitled to question or dispute it. Venues failing to comply with disclosure rules could be in breach of consumer law.
Tips for Dining Out on a Public Holiday in Sydney
- Check ahead: Visit the restaurant’s website or call ahead to confirm if a surcharge applies.
- Plan your timing: Book early, as public holidays tend to be busy and some restaurants may operate on limited hours.
- Weigh the cost: Consider whether the added surcharge is worth the convenience or experience.
- Be understanding: Remember that staff are working while most people are off, and the surcharge helps support fair pay.
FAQs
Is the surcharge legal in NSW?
Yes, provided it is clearly displayed to customers before ordering.
Do all restaurants charge a public holiday fee?
No. While it’s common, not every restaurant applies a surcharge. Some absorb the extra cost.
Can I refuse to pay a public holiday surcharge?
If the surcharge was not clearly disclosed before ordering, you may have grounds to dispute it. Otherwise, it forms part of the agreed pricing.
