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Home / Business / Companies / Retail

Restaurants' high water mark-ups

By Heather McCracken
Herald on Sunday·
29 Aug, 2009 04:00 PM2 mins to read

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Restaurants pay $2.80 to $3.10 for each one-litre glass bottle of Waiwera Water. Photo / Herald on Sunday

Restaurants pay $2.80 to $3.10 for each one-litre glass bottle of Waiwera Water. Photo / Herald on Sunday

A 300 per cent mark-up on bottled water in some top restaurants has left diners choking on the bill.

But the industry is unapologetic, saying food and other beverages on restaurant menus are marked up by just as much - but it's just not as obvious.

Tahitia Yom was shocked
at the water charge after dining with family at Bracu restaurant at the Simunovich Olive Estate south of Auckland.

The restaurant charges $10.50 for a one-litre bottle of Waiwera water. The same bottles sell at Foodtown for $2.89.

"It was just so shocking," Yom said. "They should just serve tap water or sell the bottled water at a much lower price."

Bracu senior maitre'd Quentin Takarangi said the price was a standard mark-up in the industry.

He said diners were advised that they had a choice between bottles and free filtered water. "They're given the option, we don't force it on them."

Prices for a litre of bottled water at other restaurants ranged from $8.50 to $13.

Waiwera Water managing director Fraser Brown said restaurants bought one-litre glass bottles for $2.80 to $3.10 each.

He said it would be imprudent for him to comment on what they charged customers.

But he added: "I don't think consumers necessarily should have to pay that much for the best water in the world, but ultimately, it comes down to the restaurant."

Restaurant Association vice president Mike Egan said diners could always choose free tap water.

"Restaurants have to offer bottled water - they'd be crazy not to - but it's a small minority that drink it," he said.

He said the mark-up on water was no greater than other food and beverages - it was just easier for consumers to compare.

" It takes time to run around giving water for free and no one minds that."

Egan said the highest mark-up in restaurants was not on water or wine, but on tea.

"A cup of tea costs about eight or 10 cents, and it's sold for $2."

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