Melbourne Juice Bar Highlights Public Holiday Wages
In a recent discussion surrounding public holiday pay, Ahmed Wassel, the owner of Drp Bar in Melbourne, shared insights about the significant increases in staffing costs during holidays. During the recent Easter long weekend, he revealed that the business incurred an additional $5,000 compared to normal weekends, resulting in a total wage bill soaring to $12,000 from the standard $7,000.
Staggering Wage Rates
Wassel’s staff, ranging from five to seven employees daily, were compensated at rates between $30.13 and $62.45 per hour. As part-time and full-time employees received double pay for the holiday work, casual workers saw their hourly rates rise to double and a half. Drp Bar cheekily noted that staff were effectively “earning CEO wages” during these holiday shifts.
To mitigate these costs, Drp Bar implemented a 15% surcharge on public holidays, although Wassel pointed out that even this surcharge was "nowhere near enough" to fully offset the increased labour costs. He stressed that escalating costs are influenced by other factors, including rising expenses for goods, rent, electricity, and increased wages and superannuation contributions.
Business Sustainability and Community Service
Interestingly, Wassel and his business partner forwent their earnings during the long weekend, emphasising the importance of sustaining the business while supporting their employees.
Despite a split opinion among Australians regarding the fairness of surcharges, a recent poll indicated that 63% approve of them. Mixed reactions emerged from the video Drp Bar shared online, with many praising the establishment for fair wages while others questioned the rationale behind passing costs onto customers.
Critics suggested alternatives, proposing that businesses should increase everyday prices instead of applying surcharges. Wassel acknowledged the mixed feedback : “Most customers are understanding of the added charge, though some do voice their frustrations.”
The Impact of Public Holidays
Wassel recognised that public holidays can be convoluted for hospitality businesses. While they bring increased customer foot traffic and potential revenue, they also impose high operational costs. Drp Bar endeavours to keep its doors open on such occasions, weighing the benefits of serving customers against the financial strain of holiday operations.
According to Lightspeed’s managing director, Nicole Buisson, consecutive public holidays create a double-edged sword scenario for businesses. She highlighted that the potential for increased sales must be balanced against the inevitable spike in costs associated with operating on holiday days.
Reflecting on the impact of rising living costs, Wassel candidly shared that the Easter weekend can sometimes be disappointing in terms of sales, leading him to describe it as a “weird” situation for profitable trading.
Conclusion
Despite the challenges posed by public holiday surcharges and rising operational costs, Wassel remains committed to serving his community. He reinforced the idea that while profit is essential, the commitment to providing a cherished service to customers cannot be compromised. The experience of Drp Bar serves as a revealing case in understanding the complexities of holiday operations in the hospitality sector in Australia.
