An Aussie commercial tenant has gone from losing money to clearing more than $1000 in a single day after converting his retail space into a surcharge-free zone.
Squid Bar operator Kane Lobo, 22, introduced an upfront pricing strategy at his Melbourne coffee pop-up to remove card, weekend, and holiday surcharges.
The business currently occupies a temporary, shared-space footprint on the city’s CBD and has been operating through temporary locations for six months.
Mr Lobo said the decision was driven by his personal frustration with the endless extra fees tacked onto the end of a bill.
“I wanted Squid Bar to be different,” the university graduate told News Corp Australia.
“In Melbourne, there’s card surcharges, there’s weekend surcharges, there’s public holiday surcharges … there’s just so much.
“As a customer, I personally hate it when I think I’m paying something, and then there’s a billion surcharges added to it and I end up paying quite a bit more.”
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Kane Lobo. Picture: Supplied
Squid Bar currently occupies a temporary, shared-space footprint on the city’s CBD. Picture: Supplied
Rather than add extra charges at checkout, Mr Lobo put the extra costs straight into his normal menu prices
“If we just simply price everything at its value, it removes that problem,” he said.
“I like the fact that you pay for what you pay for. I think that is a lot more honest when it comes to communicating the price.”
The commercial shift marks a significant operational turning point for the micro-retailer, who said the venue was initially a heavy financial strain on his cash reserves.
When Squid Bar first launched as a weekend venture while Mr Lobo was completing a university degree, it was losing money with every opening.
“When we first started, we were not doing too well,” Mr Lobo said.
“We were making about $300 in revenue a day, which was a loss. Every single day that we ran, we were losing money.”
The menu features a selection of specialty cookies alongside the “Rockpool”, a signature cold brew infused with Nutella. Picture: Supplied
The retail model improved after the business established a regular customer base and placed a physical A-frame sign outside the property reading ‘NO SURCHARGES’.
Operating just one day a week out of the shared commercial space, the simplified checkout process has allowed the pop-up to consistently clear four figures per shift.
“Every single time we run, we make more than $1000,” Mr Lobo said.
According to Mr Lobo, the business saw a spike in customer numbers on expensive dates like public holidays, specifically because other venues in the area typically charge extra.
“People, especially on public holidays, would just try us because they would not get a surcharge on top of it. A lot of customers are pleasantly surprised.”
The menu features a selection of specialty cookies alongside the “Rockpool”, a signature cold brew infused with Nutella, helped attract customers to the city’s northern edge.
After recently receiving his degree, Mr Lobo is planning to transition Squid Bar from a one-day-a-week pop-up into a permanent, seven-day-a-week storefront in the Carlton or Parkville area.
“That is the plan,” Mr Lobo said. “I love the idea that I’m creating a community.”
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