Sushi lovers baffled by outlet’s 30 cent ‘cutting’ surcharge
An outlet is under fire for adding a surcharge for the most basic service, as experts warn many businesses are doing the same to mask price rises.
As prices continue to soar amid Australia’s cost of living crisis, a Sydneysider has spotted another hospitality business charging an unusual fee for a standard service.
A photo posted to Reddit shows a Hero Sushi sign informing the restaurant’s customers that a surcharge will be owed if they want their order cut.
“Cutting service surcharge, 30 cents each,” reads the sign, which is sitting on top of a sushi display unit.
The odd charge has sparked debate online, as customers argue whether the additional expense is warranted.
“I get sushi for my kids sometimes and ask for a hand roll to be cut into four for them. I would not pay for it to be done,” one customer said.
“I guess when you buy potato chips, do you pay for each one to be cut? No, it comes with the price of the chips, the restaurant doesn’t charge extra,” said another.
“I work at a sushi shop in Newcastle with the same charge; I don’t understand it either,” a third said.
But not all were against the extra charge, with some backing the business’ attempts to combat inflation.
“To be fair, raw ingredient prices have skyrocketed and it’s definitely biting for any place that wasn’t completely raking it in,” one person said.
“Just because as a customer you assume something should be free, doesn’t mean it can be in practice – paying extra for tomato sauce at the pie shop comes to mind!” another commented.
News.com.au has contacted Hero Sushi for comment. The chain has about 30 NSW outlets, mostly in Sydney.
It’s not the first time Sydneysiders have caught out restaurants charging extra for standard requests, after a Vietnamese takeaway store ignited debate over the practicality of one of their surcharges earlier this month.
Sydney Pork Rolls in Haymarket, who have also been contacted for comment, was spotted charging customers 20 cents extra if they wanted to have their roll cut in half.
So as more customers identify extra costs making their way onto receipts, it begs the question: have surcharges grown in popularity or are we only noticing them more now because we’re conscious of our expenses?
Dean of La Trobe University’s Business School, Professor Aron O’Cass, told news.com.au that surcharges have been around for a long time, however more businesses are using them now to disguise price hikes.
“Charges, fees, they’re all the same thing really. (Businesses) use different terms because it softens the blow to the customer and different people have different views on it,” Prof O’Cass said.
“And with increasing competition, a lot of organisations use surcharges as a way to mask price rises.”
While surcharges on food are most commonly discussed, Professor O’Cass said they’re present across all sectors but are not always obvious to customers.
This ranges from choosing your seats on airlines to packing your own groceries at Coles and Woolworths, as customers don’t get a discount on their products despite doing the work of checkout employees.
“It’s the same principle as trying to move costs around so the customer doesn’t see the total cost,” he said.
However surcharges become problematic when the fees aren’t worth the standard of service being paid for, especially as it’s easier now than ever to compare businesses’ services.
“(Businesses have) got to deliver on that service except in the situation where all businesses do the same thing,” Prof O’Cass said.
“I think the challenge we’ve got in this area is if the fee is appropriate and it’s clear, it should be added to some sort of overall service experience. If that’s nothing, then it’s just a revenue grab for the business.”
So are surcharges here to stay? La Trobe tourism, hospitality and events lecturer Dr Paul Strickland said extra fees were something customers would have to learn to live with as the cost of running a business rises.
“All these charges go towards covering increasing operating and wage costs. Over time, business viability and customer choice or expectations will find the balance of what surcharges will be accepted,” he said.
Dr Strickland also said surcharges provided customers with an option to pay extra for a service they wanted, as opposed to businesses directly hiking prices which tended to generate customer backlash.
“Implementing a surcharge and ‘add items’ selection, the customer has a choice of what they are willing to pay for,” Dr Strickland said.
“If the customer is asking for more time from an employee, it takes that employee away from serving another customer, for instance.”
According to the Australian Competition and Consumer Commission (ACCC), businesses can charge surcharges at their own discretion so long as the terms surrounding them are explicitly stated and don’t come as a surprise to the customer.
There is no limit as to how much extra a business can charge in additional costs.