Astons Steak & Salad adds GST, service charge, cites rising costs

Astons Steak & Salad, the popular buffet chain, recently added a 9 per cent GST and 10 per cent service charge to dine-in bills, prompting a flurry of mixed reactions online.

Some netizens slammed the nearly 20 per cent price hike, declaring they'd be avoiding the restaurant.

Others, however, defended the move, pointing out that many Singaporean eateries already implement such charges to cope with rising business costs.

An Astons representative, speaking to 8days, explained that escalating inflation and operational expenses fuelled the decision.

Key factors include compliance with the Local Qualifying Salary (LQS) and Progressive Wage Model (PWM), both designed to ensure fair compensation for Singaporean workers.

The LQS stipulates a minimum salary of $1,600 for full-time staff and $10.50 hourly for part-timers. This affects the number of foreign workers businesses can hire under Work Permit and S Pass quotas. 

The PWM, meanwhile, mandates suitable wages based on skill and productivity levels.

Both policies were updated in July 2024, following announcements in this year’s Budget speech by Prime Minister Lawrence Wong. These changes have significantly increased overhead for the F&B sector, which relies heavily on part-time and foreign labor.

Astons Group, which operates a diverse portfolio of F&B brands, clarified that GST and service charges are already standard practice at its premium outlets, including The Ranch Steakhouse & Bar and East Treasure Chinese Restaurant.

Casual dining establishments like Astons Specialities and Andes by Astons, however, continue to offer nett pricing.

The Ministry of Manpower has stated that the LQS is intended to ensure meaningful employment for local workers, preventing token hires simply to meet foreign worker quotas. 

However, F&B businesses, including Astons, are grappling with increased costs, which some industry players admit could be passed on to consumers.

Despite the negative feedback, supporters maintain that these changes represent necessary adjustments for businesses to remain viable while complying with Singapore’s labor policies.

Astons remains committed to balancing affordability and sustainability in its operations.