Weekend and public holiday surcharges can protect margin, but only when the pricing logic is clean. Most stores do not lose money because the surcharge is too small. They lose money because surcharge, GST, and reporting are configured in the wrong order.
This guide is written for Australian operators who need counter-ready rules, not theory.
Quick Takeaways
- Keep your base menu GST-inclusive.
- Apply surcharge to the displayed menu price.
- Calculate food cost and margin on net sales (ex-GST).
- Publish surcharge wording clearly before guests order.
Where Operators Usually Get It Wrong
Three patterns show up repeatedly:
- Staff know the surcharge rate, but menu and POS wording do not match.
- Teams calculate food cost on GST-inclusive revenue, so monthly margin looks better than reality.
- One surcharge rule is copied across every channel without checking in-store vs delivery behaviour.
Fix the process first. Then decide the percentage.
Rule Snapshot (Australia)
- ACCC price display guidance requires clear total pricing and clear surcharge disclosure.
- ATO GST guidance keeps the standard GST framework at 10% for most restaurant transactions.
- Fair Work resources for the Hospitality Award are the practical reference point when teams review weekend/public holiday labour pressure.
The Pricing Math That Stays Stable
Final price (incl GST) = Menu price (incl GST) x (1 + surcharge rate)
Net sales (ex GST) = Final price (incl GST) / 1.10Use net sales for food cost % and margin tracking.
Example 1: Sunday Brunch Item
Assumptions:
- Base menu price (incl GST): A$24.00
- Sunday surcharge: 10%
- Recipe cost: A$7.20
Sunday price = 24.00 x 1.10 = A$26.40
Sunday net sales (ex GST) = 26.40 / 1.10 = A$24.00Comparison:
- Weekday net sales (ex GST): A$24.00 / 1.10 = A$21.82
- Weekday food cost %: 7.20 / 21.82 = 33.0%
- Sunday food cost %: 7.20 / 24.00 = 30.0%
The surcharge is not extra profit by default. It is usually what keeps labour-heavy periods from eroding margin.
Example 2: Public Holiday Rule
Assumptions:
- Base menu price (incl GST): A$18.00
- Public holiday surcharge: 15%
Public holiday price = 18.00 x 1.15 = A$20.70
Net sales (ex GST) = 20.70 / 1.10 = A$18.82If your target net sale is around A$18.50, this setup keeps you near target while staying operationally simple for staff.
Local Operating Scenarios
Melbourne CBD weekday lunch cafe
The risk is short service windows and labour compression. A single visible Sunday rule plus one public holiday rule is usually easier to execute than multiple time-block surcharges.
Gold Coast coastal casual dining
Holiday spikes are less predictable and table turns vary by weather. In this pattern, the key control is pre-service POS testing so staff quote totals consistently at the table and counter.
Display Copy Template
Use plain language guests understand on first read:
- “A 10% surcharge applies on Sundays.”
- “A 15% surcharge applies on public holidays.”
- “All prices are GST-inclusive.”
Repeat the same text on printed menus, POS counter signage, and online ordering pages.
20-Minute Monthly Surcharge Check
- Confirm surcharge rules in POS and online ordering are identical.
- Recheck your top 20 SKUs using ex-GST margin reports.
- Spot-check two Sunday receipts and two public holiday receipts.
- Verify menu wording is visible before order confirmation.
- Publish one effective date across all channels.
Related Guides
- Australia Menu Pricing Guide
- Australia Menu Pricing Calculator
- Australia Menu Price Rounding Guide
- Australia Food Cost Calculator
- Australia Delivery App Pricing Guide
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