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Have you ever paid a public holiday or weekend surcharge? Here are the rules

Surcharges are becoming "more commonplace" in the hospitality sector on weekends and public holidays. (ABC News: Daniel Litjens)

As the sun shines over Henley Square in Adelaide's west, people walk along the foreshore enjoying their day.

It's summer, when thousands flock to Adelaide's coastline to soak in the sun and catch-up with friends over a coffee or meal.

But the fee they pay for those services might be different depending on the day they choose to visit the seaside town. 

That's because most businesses at Henley Beach apply surcharges on weekends and public holidays, sometimes upwards of 15 per cent. 

Have you ever paid a public holiday or weekend surcharge? Here are the rules

Nick Noll says he gets "frustrated" when he has to pay a surcharge at cafés or restaurants. (ABC News: Daniel Litjens)

What do customers say? 

One of those seaside walkers was Nick Noll, who said seeing a surcharge could be "frustrating".

"Sometimes you're not sure what you're going to get with each one when you've already ordered, so you sort of just suck it up," he said.

Another walker, Simone, had a recent bad experience where she was charged a 15 per cent surcharge for dinner at a local hotel on New Years' Eve.

"I'd worked that day so to me it wasn't a public holiday … I wasn't too impressed by that," she said. 

"You get caught out, don't you? You're going to eat out, so you pay it."

Despite expressing varying levels of annoyance, many people do concede the need for surcharges for small businesses.

Have you ever paid a public holiday or weekend surcharge? Here are the rules

John understands the need for cafés to apply surcharges as a former business owner. (ABC News: Daniel Litjens)

John is a former business owner and said while he would rather there were no surcharges, he "can understand why it happens".

"The extra charges for staffing does warrant it in a lot of instances. What annoys me more than anything else are charges for using your credit card," he said.

Jan Thomas walks to Henley Beach every week for a coffee in the morning, and said she did not disagree with businesses applying a surcharge.

"The cost of staff on a public holiday is atrocious, they've got to cover it somehow," she said.

Is it allowed? 

Businesses are allowed to add a surcharge but there are some caveats.

According to the Australian Competition and Consumer Commission's (ACCC) website, businesses must include information for customers about the surcharge on the menu and the words "must be at least as prominent as the most prominent price on the menu".

"Consumers should be made aware of any weekend and public holiday surcharges that may apply before they decide to order or purchase products from restaurants and cafes," the ACCC website states. 

"If the menu does not list prices, information about these surcharges must be displayed in some other prominent way."

Have you ever paid a public holiday or weekend surcharge? Here are the rules

Jan Thomas is sympathetic to business owners and happy to pay surcharges on weekends. (ABC News: Daniel Litjens)

What do businesses say?

In Australia's hospitality sector, penalty rates are mandatory for employees working on weekends or public holidays.

For casual staff, a Saturday shift will earn them 150 per cent of a base wage, Sunday's are 175 per cent, while public holidays require staff to be paid 250 per cent of an ordinary hourly rate.

For local business owner Nik Mavridis, it is a numbers game.

"On a Sunday we might have 200 hours of employment, that's about $6,000 on a normal weekday. On a public holiday, that will double to $12,000 for wages for one day," he said.

"We do need to charge a surcharge to make it profitable, otherwise it's definitely not worth opening." 

Have you ever paid a public holiday or weekend surcharge? Here are the rules

Nik Mavridis applies a surcharge on Sundays and public holidays at his Henley Beach restaurant. (ABC News: Daniel Litjens)

Mr Mavridis's restaurant Estia has been a popular establishment at Henley Beach for more than 30 years.

He applies a 10 per cent surcharge on Sundays and 15 per cent on public holidays, and said it would not be worth opening otherwise.

"Look you'd survive, but you'd be opening for fun and that's not why we're here," he said. 

Over in Adelaide's inner-north, Jimmy Parris is a part-owner of Muratti Cakes, a café on the bustling Prospect Road.

He said businesses needed surcharges in order to pay the bills.

"It's essential for businesses to implement surcharges, just in order to recoup the cost it is to operate a business on those days that are more expensive to run," he said.

Have you ever paid a public holiday or weekend surcharge? Here are the rules

Jimmy Parris says businesses might not be able to stay afloat if they didn't apply surcharges.  (ABC News: Daniel Litjens)

Mr Parris does not open his business on Sundays or public holidays, because it is too expensive to operate.

But he does apply a surcharge on credit card transactions, which he said had received "minimal pushback" from patrons.

"I think customers accept it, they understand it. I think the key is making sure customers are aware of the surcharge before making the purchase," he said.

South Australian Business Chamber (SABC) chief executive Andrew Kay said in the past four years, he had seen surcharges become more commonplace and "accepted by the public".

"People want to see their favourite restaurants and cafés open, and they want to know they're open on a Sunday, they want to know they're open on a public holiday," he said.

"If these surcharges aren't in place, the business will choose not to open."

Have you ever paid a public holiday or weekend surcharge? Here are the rules

Andrew Kay says businesses have the right to charge what they need to in order to survive. (ABC News: Daniel Litjens)

SABC often helps small businesses understand penalty rates and how they apply.

He said applying a surcharge at this time of year was "just good business practice"

"We know that small businesses have seen their energy prices, their rent prices, their insurance prices and their wages go through the roof in the last few years," he said.

"If they don't put something in place, they won't survive."

What about a seasonal surcharge?

The most contentious issue for the patrons of Henley Plaza was the idea of a 'seasonal surcharge', which applies over a longer period.

"Do not agree with that, definitely not. If I saw ahead of time, before I'd have to pay I'd [walk out]," Jan said.

John had a similar sentiment about businesses that might apply seasonal fees.

"Perhaps I'll have to be a little more discerning," he said.

Have you ever paid a public holiday or weekend surcharge? Here are the rules

Surcharges are common during the summer months due to increased demand for labour. (ABC News: Daniel Litjens)

While Mr Mavridis and Mr Parris do not apply seasonal surcharges, both agreed that businesses had the right to charge as they saw fit.

"They need to run the business so they can stay in business," Mr Parris said.

"If they deem it likely that they need to implement those surcharges for them to maintain their business, then they need to do that."

"You're entitled to charge whatever you like so if people are happy to pay it, they can pay it," Mr Mavridis said.

Mr Kay agreed, and said that businesses are able to get instant feedback from customers on whether their decisions are the right ones.

"[Customers] have the choice to either vote with their feet and exit, or take the opportunity to enjoy the service … and ensure that next time they go there on a weekend or a public holiday, that restaurant is still open for business," he said.

Mr Kay said surcharges provided a scenario where everyone benefited, because the business was able to stay open.

"[Cafes and restaurants] are operating on very skinny margins and it doesn't take much to tip them over the edge," he said.

"A surcharge is a very small price to pay to ensure these businesses are open for us and they can survive and thrive."

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