Pavilion Geelong imposes a high season surcharge on guests
Diners have slammed a beachside restaurant which hiked prices during the summer holidays, labeling the peak season surcharge as 'b****** greed'.
Pavilion Geelong is adding an extra 10 per cent to the bills of customers visiting the popular eatery south-west of Melbourne until Australia Day later this month.
The shocking new surcharge has been in effect since December 27.
An outraged customer posted a photo of the menu with the new costs in small print on Reddit.
“No peak season surcharge is required,” the customer wrote.
“Fix your prices all year round and absorb this bulls**t.”
Customers have criticized a restaurant for adding a high season surcharge to their restaurant bill, labeling it as 'greed'
Pavilion Geelong restaurant added an extra 10 per cent to customers dining between December 27 and Australia Day
While regular restaurant and pub guests will be familiar with the surcharges on Sundays and public holidays to cover higher staff costs, the latest surcharge was a step too far for many.
“The only reason for this spike in rates is greed,” one person wrote.
“Because they can't let you tip, they raise taxes,” wrote another.
“I've practically given up on eating out… it's too expensive,” said one.
Many were confused as to why the waterfront restaurant would need additional funding.
“Isn't it easier to make money when you're busy???” said one.
“You pay more because we're busier – yes… No,” wrote another.
“So they charge customers extra because they're busy and making more money? More questions for the more turnover they will bring in this season? LOL ok,” said another.
Regular restaurant and café guests will be familiar with the surcharges on Sundays and public holidays to cover higher personnel costs, the latter surcharge was a step too far for many. Pictured is an invoice with the recent surcharge
Others wondered whether the surcharge would also be applied to the existing 20 percent menu surcharge on public holidays.
“I wonder if they're piling the 10 percent high season surcharge on top of the 20 percent public holiday surcharge? Like during New Year's…', one person wrote.
However, many were quick to defend the restaurant and hospitality industry that has suffered since the pandemic.
“This place is extremely seasonal. Hardly anyone comes here during the entire winter. I'm sure they lose money during the non-summer months,” one person wrote.
“Covid has destroyed the industry and it hasn't recovered – that's why. Staff are difficult to find, costs are skyrocketing and margins are poor. Close places on the left and right.' another added.
The operators of Pavilion Geelong have since responded to the backlash to defend their decision.
Only Hospitality Group managing director Georgia McInnes said the additional payment covered the cost of accommodation they had to provide to additional employees during the busy holiday period.
“As a company, we have had to rent out a house nearby for the sole purpose of accommodating several staff members who have had to relocate from Melbourne and surrounding areas during this period,” she explained in a statement.
'Unfortunately the venue cannot meet the costs associated with the accommodation as these are very significant.'
The restaurant says without the high season surcharge, Pavilion Geelong would not have been able to stay open during the busy summer period
The surcharge will remain in effect until Australia Day (previous dinners pictured)
Ms McInnes said the restaurant would not be able to stay open without the new fee.
She also said they chose to apply the surcharge instead of raising their prices throughout the year so that loyal locals would not be affected.
Daily Mail Australia has contacted the restaurant and Only Hospitality Group for further comment.
According to the Australian Consumer and Competition Commission, surcharges are not illegal as long as they are clearly stated on the menu.
“They do not have to include these costs in the total price displayed for their products, because they are subject to a legal exception,” the consumer watchdog said.
'However, if they charge such a surcharge, they must select 'Apply a surcharge of (percentage) on (day(s)') in the menu.
“These words should be at least as prominent as the most prominent price on the menu.”
Australian Retail Association Chief Industry Affairs Officer Fleur Brown told Sunrise on Friday the hospitality industry has been through a terrible few years.
Surcharges are not illegal as long as they are clearly stated on the menu. Pictured is the Geelong Pavilion
“Many of them are facing higher wages, higher energy costs and the cost of goods and services from abroad,” Ms Brown explained.
'That cash flow side is quite crucial for them.
“They may need a surcharge, in other cases they may need to close their doors on certain days of the week if they don't get any traffic.”
However, many diners disagreed with the surcharge as they believed it would deter customers and others branded it as 'sneaky'.
'The problem comes when you first notice the fine print when you've finished eating. Then you can't just 'not go', someone wrote.
'This is Australia. We see the price, we pay the price. None of this percentage stuff like in the States,” said another.