Diners are paying up to 30% more for restaurant meals than the menu price suggests, according to a new analysis by the consumer group Choice. The study found that hidden costs such as mandatory service charges, booking fees, and delivery surcharges are increasingly common, adding an average of $12 to a $40 meal.
Breakdown of Hidden Fees
The research examined 200 restaurant bills across Sydney and Melbourne. It revealed that 65% of restaurants now apply a surcharge on weekends or public holidays, typically 10-15%. Additionally, 40% of venues add a compulsory service charge for groups of six or more, often 10% of the total bill. Delivery orders via third-party apps carry an average surcharge of 20% on top of menu prices.
Consumer Impact
Choice spokesperson Kate Browne said, "Diners are being hit with unexpected costs that can turn a $50 meal into a $65 expense. These fees are often buried in fine print or added at the point of payment, leaving customers feeling misled." The group is calling for mandatory all-inclusive pricing so consumers see the final cost upfront.
Industry Response
Restaurant and Catering Association CEO Wes Lambert defended the practices, stating that surcharges help businesses cover rising wages and rent. "Hospitality is operating on thin margins. These fees are transparent when disclosed, and customers can choose to dine elsewhere," he said. However, the study found that only 30% of restaurants clearly display surcharge policies on their menus.
Future Outlook
Consumer advocates are pushing for regulatory changes similar to those in the UK, where hidden fees must be included in displayed prices. The Australian government is reportedly considering a review, but no timeline has been announced. For now, experts advise diners to ask about extra charges before ordering.
