Public Holiday Surcharges - your thoughts?

[ahmad]

We needed to eat out last night. Thought we'd try a restaurant we hadn't been to before, even though we'd heard it was a little over-rated and over-priced.

Phoned ahead to check they were open, and asked if there was a public holiday surcharge. Yes there was, and it wasn't 15% or 10% - it was 20%.

20%??

Sorry, I continued ringing around until we found a place that did NOT charge extra for dining on a public holiday. Luckily we didn't end up at McDonalds.

Do you mind paying extra to eat out on Public Holidays? I obviously made a conscientious decision to avoid doing so.

[Sebly]

I had BK last night, no charge

[dst]

i dont think anyone enjoys paying more. but fair enough.
they have to pay staff more, so its only logical you should pay more.

no point running a business if you aren't making money.

[Brianemone]

Who invented them? Seriously. And how the hell did it catch on so fast without people boycotting the businesses responsible.

[ahmad]

Originally Posted by Brianemone

Who invented them? Seriously. And how the hell did it catch on so fast without people boycotting the businesses responsible.

You are an up and coming restaurant owner Brian. Can you see their point of view and how much validity do you give it?

Supposedly business costs are higher on stat holidays so "user pays", but to me I would rather these costs be built into an every day price.

I guess others would complain they don't want to subsidise me when I dine on a public holiday.

[Synboi]

Wel if you're going to force someone to come in and work instead of being with their family on a public holiday they sure as hell won't do it for a normal wage. I guess the business lays those charges onto the customer so they don't have a net loss.

[JimboNZ]

Except that when you work easter sunday you dont get time and a half, something to do with it being a sunday, i dunno

[clark007e]

yea easter sunday is not a public holiday since its a religious holiday ( easter monday is the stat day)

[ahmad]

Originally Posted by JimboNZ

Except that when you work easter sunday you dont get time and a half, something to do with it being a sunday, i dunno

It is a case by case, depending on whether you are a shift worker and normally work Sundays or not.

But the point remains - would you avoid going to a restaurant that charges you another 10-20% for dining there tonight?

[Happy Ronin NZ]

I have no problem with them charging the extra, HOWEVER I would not eat there either.

Market Forces - price and demand and all that!

[captain x]

Exactly, supply and elasticity of demand would suggest that a decent eatery that opted not to charge extra should make more from the extra visitors brought in by the holiday.

And regardless of the surcharge being pushed toward the front of house staff, I would expect them to rise above the challenge of working a stat day and supply helpful/friendly service that is worth the business.

[GaR]

If you're too shit at running a business to develop a pricing scheme that allows you to open public holidays, then don't be so shit.

I've only paid the surplus once, and won't again unless I'm really hungry and they have awesome roast lamb sandwiches.

[KingFD]

I don't mind buying dinner on a stat holiday if the surcharge was up to 10%. Above that and I would probably walk away and have dinner at home.

[WaxerNZ]

I have been putting alot of thought into this lately. We are busy even with the charge normally. However, busy or not. With people being tight on money at the moment we have had quite a few people call for bookings then decide not to.
You can put prices up for everyone over the year but then you have to look at how competitive the food industry is price wise. Although on the higher end like brian I don't know how much that would effect them.
There is a point where if you have to weigh up loss of income because of the charge vs increased surcharge revenue, assuming other businesses are not applying it. Meaning if the surcharge doesnt work dont open. Thats happening more and more.
You have to admit though double and a half time is way to much to pay someone. (1x extra being day in lieu)
From a restaurant owners perspective. Imagine having a fairly normal sized establishment with 4 kitchen staff and 3 wait staff. 7 employees. Due to the day in lieu which they will get no matter how many hours they work you will work the staff for long hours. Sucks if you pay someone for 2 hours work plus an entire day. Our restaurant opens at 8:30am and we get out from 10-11pm normally depending on how busy it is. With 2 hour breaks if I can squeeze them in(we only work 4 staff total though). Most places around us close for 2-3 hours in the middle of the day. Even assuming they open at 11am and close at 10pm the staff still all get 9 hours of 1.5 pay plus a full days wages.
7staff x minimum wage$12.50 x 9 hours = $787.5
Add to that half time = 1181.25
Add 7 x Day in lieu($700) $1881.25
A fairly conservative estimate considering i am assuming a staff of minimum wage monkeys and lower work hours than I am used to.
What margins are you working off. Maybe a 3rds. Staff, product, profit. How much of your margins has it eaten into. How many meals, even at $40 each, rather than mcdonalds level pricing, would you need to sell just to break even.
Out of curiosity what sort of prices are people paying for meals that they wont pay the surcharge. Are we talking a 50cents to $2 dollars extra.

[BorDAr]

Originally Posted by Sebly

I had BK last night, no charge

i heard you yapping about that on sunday.
was it good?