Restaurant surcharges split country

New Zealanders are split down the middle over whether restaurants and cafes should charge extra on public holidays.

As the country prepares for the New Year statutory holidays, a Herald-DigiPoll survey finds only a wafer-thin majority think a surcharge is reasonable.

The survey of 800 New Zealanders showed 48.7 per cent of people consider it reasonable for restaurants and cafes to charge customers extra on public holidays because they have to pay their staff more and 47.6 per cent find it unreasonable.

The variation between Auckland and other regions was also small.

Restaurants began imposing surcharges on statutory holidays after changes to the Holidays Act last year that entitled workers to time-and-a-half and a day in lieu on those days.

Restaurant Association figures show 74 per cent of businesses open on some public holidays and 75 per cent of those impose surcharges. The average surcharge is 15 per cent.

The association vigorously defends surcharges, saying they are necessary to stop businesses losing money on statutory holidays.

"If the public discarded surcharges, nobody would open and workers would lose their jobs," said chief executive Alistair Rowe.

He said average net profit for restaurants as a percentage of sales was 5 per cent and labour costs accounted for 30 to 40 per cent of takings.

"There's no room for 15 per cent of labour on 30 or 40 per cent," he said.

But unions have questioned the need for surcharges, saying they generate extra profit for restaurateurs who are already benefiting from increased custom on public holidays.

Adrienne Bates likes to eat out but has mixed feelings about paying a surcharge.

"It's fair because they have to pay their staff more, but unless I really wanted to go to that place, it would put me off," the 32-year-old Aucklander said.

Former restaurateur Eduard Nakhle is happy to pay extra. "I'll be hoping they'll be open for a start, so it's only right to give them a bit more money. They'll be giving up their holidays, too."

A Tauranga office manager did not like paying surcharges for dinner, but did not mind doing so for breakfast because it was a less expensive meal.

Soul Bar & Bistro at Auckland's Viaduct Harbour is open this New Year and will impose a 20 per cent surcharge.

Owner Judith Tabron said this was necessary to cover the higher staff costs and was unrepentant about it potentially deterring diners.

"They can make their own choice," she said. She also plans to close for Easter, saying it is more economical to do renovations then than shut down on an ordinary week.

Labour costs would likely force restaurants to raise everyday prices in 2007, when the law entitling workers to four weeks' paid holiday comes into effect.

Pasha, on nearby Prince's Wharf, has taken a different approach. It will close on January 1, 2 and 3. It also closed for Christmas Day, Boxing Day and December 27.

A spokesman said the extra labour costs and staff morale were behind the decision.

"Everybody wants those days off."

* POLL RESULTS

Do you think the surcharges are reasonable?

Yes: 48.7 per cent
No: 47.6 per cent
Don't know/refused: 3.7 per cent

Would the surcharges deter you from eating in restaurants or cafes on statutory holidays?

Yes: 48.4 per cent
No: 48.8 per cent
Don't know/refused: 2.8 per cent