If you own a restaurant or café in Australia, chances are you’ve wrestled with the surcharge question at least once. Every Christmas and New Year’s, the same debate crops up: Do you pass on some of your extra costs to customers, or do you bite the bullet and hope trade makes up the difference? The issue gets people talking—for good reason.

There’s no easy answer. Surcharges can keep your business afloat during the expensive holiday period, but they also bring challenges. Before you make a call, let’s run through the facts, some real-world pros and cons, and a few practical ways to navigate the holidays without upsetting your regulars.

What the Law Says (and Why It Matters)

First things first: surcharges are legal, but you have to do them by the book. The ACCC requires any venue charging a public holiday surcharge to display it clearly—up front, not buried in small print. Make sure you put a notice at the entrance, add it to menus (both in-house and online), and mention it if people phone up asking about bookings. Fines for slipping up are real, and so is the risk of negative publicity if a customer feels blindsided.

Why Many Businesses Choose a Surcharge

Let’s face it: opening on Christmas, Boxing Day, or New Year’s Day comes at a premium. Penalty rates for staff on public holidays can be more than double the standard wage. For some venues, that one figure turns the profit-and-loss equation on its head. A 10–15% surcharge often isn’t about making an extra buck. It’s simply about staying afloat.

Over time, public holiday surcharges have become much more common. At this point, a lot of diners expect to see them—especially if your competitors are doing the same. If you’re in a part of town with plenty of tourists or nowhere else is open, you might find people barely blink.

Surcharges also give you a shot at running the doors when you’d otherwise have to close. If enough people book—and are happy to pay—the extra revenue can keep your business and staff in strong shape for the new year.

What You Need to Watch Out For

Of course, not everyone is receptive to a surcharge. Some customers resent the idea or see it as unfair “holiday tax.” You don’t have to search far for a negative review where the extra fee got under someone’s skin. People are also getting savvier: if a dozen venues in your area absorb the cost but you tack on an extra 15%, the punters looking for value could vote with their feet.

It’s also important to remember how much of the conversation lands on your staff. They’re the ones fielding questions at the till or on the phone. Put a surcharge in place, and you need to back up your team. Make sure everyone understands the “why” so they can answer politely but confidently.

Making Surcharges Work for You (and Your Customers)

If you’ve gone through your costings and decided on a surcharge, focus on two things: making it fair and making it obvious.

• Calculate your average wage bill for a typical day, then compare it with your projected wages for the public holiday. Let this figure guide your percentage. Don’t just copy what the place next door does—do what reflects your costs.
• Put up signs. Mention the fee on every menu (and your website). If you do bookings, give customers a heads-up over the phone or in confirmation emails.
• Spend five minutes with the team before the rush starts—give them the right words to explain the surcharge if anyone asks. Staff who feel informed are more likely to keep their cool.

Other Approaches to Try

Not sold on the surcharge route? You have alternatives.

• Set Menu: Some businesses switch to a set menu at a fixed price for the day. The extra costs get built in, and customers often see it as a “special event” rather than a penalty. It also helps you control portions and prep.
• Year-Round Price Tweak: Instead of an obvious holiday markup, some venues keep prices a tiny bit higher all year round, smoothing out wage spikes in December and January. This works best in areas with a steady, regular trade.
• Absorb the Cost (Smartly): If you can afford it, “No Public Holiday Surcharge” can become part of your marketing. You might make less per order, but the bump in goodwill (and word of mouth) pays off in the quieter months.

Bottom Line—It Depends on You

There’s no single template for everyone. The decision comes down to your costs, your booking forecast, and the expectations of your local crowd. Spend a little time walking through your actual wage costs, check what nearby venues are doing, and decide what fits your business.

Whatever you choose, be clear in your communication and fair in your maths. Most Aussie diners understand the realities of hospo life, especially if you’re upfront and keep things personal. And if you ever want a second opinion on your numbers? A fresh set of eyes can make all the difference over the festive season.