Holiday pay too big a bite for cafes

The blame for the mass closures of Auckland's cafe and bars over Christmas-New Year has been heaped on higher public holiday wages.

Of those places that did open, most slapped a surcharge of between 15 and 20 per cent on customers' bills to try to cover for the extra costs of the Holidays Act.

"Operators had to weigh up staff costs against the need to keep their customers coming in - though they would lose money," said Hospitality Association Auckland manager Graeme McKay. "A lot decided to close."

Mr McKay said the act, which came into effect last April, required operators to pay staff time and a half plus an extra day off for working on public holidays.

With Christmas Day and New Year's Day falling on Saturdays, it meant businesses faced two lots of four-day public holidays.

"A lot of people said that length of time is too much for putting on a surcharge," Mr McKay said. "But they forget the huge costs of those days."

Operators who opened told the Herald they were rewarded by good crowds.

At One Red Dog Restaurant in Ponsonby, Auckland, a surcharge of 15 per cent was added to bills on New Year's Day and the following day.

But manager Dwayne Robinson said customers accepted the charge.

"They were sick of looking for somewhere that was open and they realise a surcharge is part of eating out on public holidays now."

Soul Bar & Bistro at Viaduct Harbour had a surcharge of 20 per cent on New Year's Day and Sunday but staff still got tips.

Paper Moon Cafe and Bar in Takapuna had a 15 per cent surcharge for all four days of the New Year's stretch - without even a grumble from customers.

"They were thankful that someone was open to do their coffee," said manager Guri Sandhu.

At Mission Bay, MKOP Street Bar and Restaurant had no surcharge. Manager Rinku Singh said it was not the only one in the bay to waive a surcharge.