Restaurants seek time on new pricing rule

4 June 2009 | by Rosemary Ryan

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The restaurant industry has taken to the Federal Government its concerns over the implementation of new pricing rules that will mean operators will have to have different menus for weekends and public holidays.

The changes to the Trades Practices Act means foodservice businesses that have a surcharge for weekends or public holidays will no longer be able to just state the amount of the surcharge on their menus. From last week they are required to provide their customers with a menu that includes the charge in each of the prices listed.

The industry's peak body, Restaurant and Catering Australia, has contacted the Australian Competition and Consumer Commission and asked that the moratorium period for implementation of the new rules be extended.

However, after receiving no response from the ACCC it then contacted Federal Government ministers including Assistant Treasurer and Minister for Competition Policy and Consumer Affairs Chris Bowen and Minister for Small Business, Craig Emerson.

R&CA chief executive officer John Hart said the ACCC had failed to consult the industry on the laws or advise of the change before it came into effect.

Hart said that while the industry was not expecting to be exempt from the laws it would like extra time to be able to comply.

“We aren’t likely to get any relief from [the new rules], but what we are pushing for is an extension of the moratorium period to give restaurateurs some time to catch up,” Hart said.

“What is sudden is the application [of the rules] to our industry. We knew this was happening and we had put a submission into Treasury.

“They went through a process of inquiring into the new legislation and we were told by the Government that we would have some clarification about where restaurants stood.

“That clarification never happened and the next thing we know the ACCC is coming out with threats to fine restaurants who have a surcharge. It is very harsh.”


Tags: accc | Australian Competition and Consumer Commission | foodservice | hospitality | restaurant and catering autralia | restaurants | restaurateurs

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Add a comment4 Comments

  1. David | 9 June, 2009 at 11:02 AM
    It's about time someone dragged the restaurant industry into line with other retail outlets. In a modern world there is no need to charge extra at the weekends. Surely the extra trade they do on the weekends more than makes up for the 10-15% charge they add. Or if they added 1-2% on all their prices over the entire week then they'd be just as well off. I say well done for making this illegal, next thing is to stop charging people for using credit cards and banking fees. Eventually Australia will catch up with the rest of the western world (as long as they haven't moved on first!)
  2. Doug Beazley (consumer) | 6 June, 2009 at 09:56 AM
    Many other industries are required to have clear and transparent pricing for all of their goods and services. We have for so long had to bear the extra surcharge costs, I accept the fact it cost more to operate a restaurant especially with public holiday loadings. In essence this is not that different of the GST applied to goods and services that must be included in the price. We as the consumer still have the right to tip for outstanding service and quality in a restaurant.
  3. Tony Phelps | 5 June, 2009 at 02:37 PM
    Consumers have the choice - as long as it is obvious before entry whether there is a weekend/holiday surcharge, most people can decide whether they'll bear the extra 10 percent or whatever. Why all people need to be treated as utterly incapable of working things out for themselves is beyond me. More unnecessary legislation to keep government employees busy.
  4. Paul Dorrington(Senior Chef & Butcher) | 4 June, 2009 at 09:47 PM
    I dont think its harsh at all, Its about time that Restaurants stop ripping consumers off..

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When unhappy with a meal, do you send your food back?
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