The owner of a popular Thai restaurant has hit back after online backlash over shocking new surcharges.
Dodee Paidang owner Boon Low, who has four restaurants in Melbourne, stressed the extra costs are the only way to protect his eateries from a “Covid-level” economic crisis.
They include a 15 percent surcharge on public holidays, a 10 percent surcharge on Sundays and late evenings, and a five percent Saturday surcharge.
Card transactions incur an additional 1.7 percent on the bill.
It comes after a photo showing the surcharges at his CBD eatery in Swanston Street caused an online uproar on Reddit.
Many Aussies were outraged by the stated surcharges, with the measure branded ‘absurd’ and ‘price-gouging’.
The owner of a popular Melbourne Thai restaurant is introducing surcharges on weekends, late nights and public holidays to survive in the current economic climate
“I’ve never seen a Saturday surcharge… sad to see it creeping into Melbourne, especially during a cost of living crisis that’s putting people off going out,” one person wrote.
Another added: ‘I was here last Saturday afternoon and took the same photos for my friends. It’s amazing how these additional costs quickly add up to the total bill.’
The backlash has prompted Mr Low to double down on and defend the benefits.
He said higher land taxes, rent and food costs have made the current economic climate “as bad as Covid” for small businesses in the hospitality sector.
Mr Low explained that he is an honest operator who pays full-time staff and covers costs, including millions of dollars in rent and land tax on the building.
“Our company has survived all the difficulties by keeping food and labor costs at a certain percentage,” he told Daily Mail Australia.
‘We want others to be able to judge how our prices have developed over the years we have been open. Our bowl of noodles is now $17.90, when we first opened seven years ago they were $14.90.”
Mr Low admitted he did not want to impose the charges on diners and that the conversation should be about ‘what happens to the charges?’
Mr Low said Melbourne had a vibrant culinary scene when he moved to the city 15 years ago, but there has been a wave of restaurant closures in the past year.
Boon Low, owner Dodee Paidang, says surcharges are the only way to protect his business from a ‘Covid-level’ crisis
He explained that he often thinks about how “weekend sales are disappearing” because of the fees, even though neighboring businesses have imposed similar fees.
“The surcharges are the only way we haven’t increased prices astronomically on opening days, weekends and late evenings,” Mr Low said.
“If we want to keep labor costs at 30 percent, respect low food prices and stay open later, then that is what we have to do.”
Mr Low has been operating Dodee Paidang for seven years, but fears Melbourne’s iconic food scene is under threat.
Mr Low also explained that these surcharges vary from restaurant to restaurant.
“We apply different allowances for different companies, taking into account the business situation,” he says.
“Our business in Box Hill has no surcharge on Saturdays or Sundays and our business in Glen Waverley has a five per cent weekend surcharge.”
Mr Low told Daily Mail Australia their bowl of noodles has only increased by $3 since 2017
Mr Low recalled that Melbourne had a vibrant culinary scene when he moved to the city 15 years ago, but has seen a wave of restaurant closures in the past year.
Mr Low believes the voices of small business owners have been drowned out by those who are angry and emotional.
“Surcharges are due to the penalty rates imposed during the specified hours or days and on public holidays,” he said.
The problem appears to be widespread, with most capital cities experiencing a wave of high-profile restaurant closures.