The owner of a popular Thai restaurant has hit back after suffering backlash online over shocking new surcharges.
Dodee Paidang owner Boon Low, who has four restaurants in Melbourne, insisted the additional charges are the only way to protect his restaurants from a “Covid-level” economic crisis.
They include a 15 percent surcharge for holidays, a 10 percent surcharge on Sundays and evenings, as well as a five percent surcharge on Saturdays.
Card transactions incur an additional 1.7 percent charge on the bill.
It comes after a photo showing surcharge rates at his Swanston Street CBD restaurant sparked an online uproar on Reddit.
Many Australians were outraged by the listed surcharges and the move was branded “absurd” and “price gouging”.
Owner of popular Thai restaurant in Melbourne introduces surcharges on weekends, late nights and holidays to survive in current economic situation
“I’ve never seen a Saturday surcharge… sad to see it coming to Melbourne, especially during a cost of living crisis that’s putting people off going out,” one person wrote.
Another added: “I was here last Saturday at noon and took the same photos for my friends.” It’s amazing how these additional costs quickly add up to the total bill.’
The backlash has led Low to redouble his efforts and defend the surcharges.
He said rising land taxes, rent and food costs have made the current economic climate “as bad as Covid” for small businesses in the hospitality sector.
Low explained that it is an honest operator that pays full-time staff and covers expenses, including millions of dollars in building rent and property taxes.
“Our business has survived all the hardships by keeping the cost of food and wages at a specific percentage,” he told Daily Mail Australia.
‘We want others to judge how our prices have evolved over the years we have been open. Our noodle bowl is now $17.90, when we first opened 7 years ago they were $14.90.’
Low admitted that he didn’t want to impose charges on diners and that the conversation should be about “what’s going on with costs?”
Mr Low said Melbourne had a vibrant culinary scene when he moved to the city 15 years ago, but there have been a series of restaurant closures over the past year.
Boon Low, owner Dodee Paidang, says surcharges are the only way to protect his business from a ‘Covid-level’ crisis
He explained that he often thinks “weekend sales are dying” because of the surcharges, even though neighboring businesses have imposed similar fees.
“Surcharges are the only way to not increase prices astronomically during holidays, weekends and opening nights,” Mr Low said.
“If we want to keep wage costs at 30 percent, be respectful of low food prices and stay open later, that’s what we have to do.”
Low has operated Dodee Paidang for seven years but fears Melbourne’s iconic food culture is under threat.
Low also explained that those surcharges vary depending on his restaurants.
“We have different surcharges for different companies, taking into account the business situation,” he said.
“Our business in Box Hill has no surcharge on Saturdays or Sundays and our business in Glen Waverley has a flat five per cent surcharge on weekends.”
Low told Daily Mail Australia his noodle bowl has only increased by $3 since 2017.
Low recalled that Melbourne had a vibrant culinary scene when he moved to the city 15 years ago, but that it has seen a series of restaurant closures in the last year.
Low believes the voices of small business owners have been drowned out by angry and emotional people.
‘The surcharges are due to penalty rates imposed on the indicated hours or days and holidays,’ he stated.
The problem appears to be widespread, with most capital cities experiencing a series of high-profile restaurant closures.