The Restaurant Association's Steve Mackenzie responds to the Herald after it reported on consumers' confusion as to when businesses should be imposing surcharges.
Surprise, surprise ... I'm surprised it's taken so long ... another public holiday and the bandwagon rolls on to restaurant surcharges. Is the Herald so hard up for news that you continue to bash restaurateurs for applying surcharges?
Why is it that there are no surcharge-bashing articles on other businesses like taxis, plumbers and other professional services? Try taking your sick kid to the doctor on a public holiday and see what surcharges apply for this essential service.
Imagine if restaurants applied surcharges based on a taxi surcharge schedule. Charges for soiling the restaurant, booking more than four people, paying by credit cards, split bills, multiple diners, dining after 11pm, waiting time?
More than 50 per cent of restaurants, cafes and hospitality-based businesses do not charge a surcharge, giving the public and restaurant diners a choice. That's more than I can say for funeral directors who surcharge should you die on a public holiday or after hours.
The industry operates on a net profit of less that 5 per cent a year. Wages average around 35 per cent of outgoings. Compare that to retail wage costs of half that. There is not a lot of room for charity in this game and to expect restaurateurs, or indeed any business, to provide for its customers at less than the business owner's expected profit is unreasonable.
Would you prefer that restaurants close on public holidays?
At least, as I have said, restaurants and cafes provide choice. If you don't like paying a surcharge then I'm sure there will be another business somewhere nearby and equally as good where you won't have to pay.
Give it a rest, guys, this is not news.
On average (Restaurant Association poll 2010) restaurants charge less than 15 per cent, many 10 per cent. The question is whether there is an adversity to the surcharge or is there a tolerance to how much customers are willing to pay? Investigating this issue is probably out of your league when it comes to reporting, preferring these low-hanging fruit issues to fill some space in the holiday issue.
Want clarity around when a holiday surcharge can be issued? Duh! On public holidays, of course.
But this wasn't the true intent of your article, was it?
Steve Mackenzie
CEO, Restaurant Association of NZ
