Yahoo Finance Aussie cafe defends 'ludicrous' $1 surcharge for no ice
The Sydney small business has been thrown into the spotlight after a customer noticed the charge on his receipt.
An Australian cafe has defended a $1 charge for not putting ice in a drink. The cost-of-living crisis has made customers very aware of what they spend their money on, sparking a wave of Aussies calling out dodgy, mysterious or unheard-of surcharges.
Woodland Cafe in Sydney explained to Yahoo Finance why they imposed a $1 charge for not adding ice after a man was surprised by the extra charge for his "wonderful" meal. A spokesperson said without ice, they were forced to use more juice to fill the cup.
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The juice costs $7 and the cafe argued ice took up at least one-seventh of the glass's volume.
Woodland advertises the charge on its menu, but it didn't pass the pub test for some Aussies.
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Some argued that taking ice out of the equation meant they would be saving money, others likened the "ludicrous" move to charging an extra dollar for toasting a sandwich.
"Ice costs restaurants and cafes money. Some have expensive ice machines and they make it themselves, others buy ice ... If you don't want ice, you're saving the cafe money. It should even out," wrote one person.
"It's a sneaky charge I agree. Sneaky either way and cafes get away with these sneaky charges because customers don't ask or challenge them," said another.
"You are technically getting more juice but wow. That's crazy. I have never seen that ever," added a third.
"It's gross. They are charging more than enough to cover their costs. Do not normalise this. Would 2 ice cubes be sufficient ... without the cost?" another asked.
But many defended the cafe and said the cost of all that extra juice adds up for the cafe.
Consumer warning as cost-of-living cripples Aussie businesses
The current climate for the hospitality industry could be described as bleak at best. Venues are shutting at an unprecedented rate.
Customers are pulling back on spending as inflation remains high and business owners are not immune to cost-of-living pressures, with rent, supplies and wages pushing them to the brink.
A recent report from CreditorWatch forecast one in every 11 hospitality businesses were expected to close their doors for good in the next 12 months.
Hospitality businesses have been urged to be careful about the surcharges they apply to customers, especially in a cost-of-living crisis.
RMIT senior lecturer in marketing, Sandy Fitzgerald, additional costs at a time Australians are struggling with their finances can turn customers away for good.
“Businesses argue that surcharges keep their doors open because the operating costs of running a business on certain days are higher (mainly wage-related)," Fitzgerald told Yahoo Finance.
“However, many people have criticised restauranteurs for charging exorbitant surcharges yet failing to deliver good service experiences. In turn, customers avoid dining during these periods, meaning less income for the business."
She recommended that restaurants look closer at operating costs and "think creatively" to improve their profit margins rather than "rely on surcharges to make a profit or break even".
Weird and wonderful surcharges are not uncommon.
Another cafe was thrown into the spotlight earlier this year when a customer realised they had been charged $1 for a staff member to warm their muffin.
A bloke was hit with a 90 cent charge for a Perth cafe to toast the sandwich he bought and he let rip about it online.
A small business in Melbourne was called out for adding on a 10 per cent “peak season surcharge” between December and January.
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