Restaurant 3% surcharges for inflation, and health care, is a BIG Pet Peeve for Me

[EJC]

Worm can open.
This is also why it helps having a kitchen so you need not worry about such nuances. That and I find I can cook better then them, and don’t care to pay much for the “ambiance“.

A new restaurant in my town that just opened has a 20% surcharge for wages, benefits,etc. A tip is expected on top of that. And of course, there’s 8.9% sales tax.

 

[joestein]

A new restaurant in my town that just opened has a 20% surcharge for wages, benefits,etc. A tip is expected on top of that. And of course, there’s 8.9% sales tax.

I would generally avoid that type of place. 3% is one thing, 20% is another.

I went to an Easter Brunch many years ago - must be at least 10 - 15 years ago. It was held at a Clubhouse of a nearby development. It was a per person price plus 20% service charge. When I got the bill, the server said that the service charge isn't her tip and that is to pay for the things like the cooks, the refrigerator truck outside, etc... I then spoke to the person running the event and they said "So and So knows that I take care of them". I didn't really like the situation. - felt it put me in a bad spot. Never went to one of the events ever again.

 

[Patri]

This whole industry is changing! Charge enough for the food to pay for wages, healthcare, shipping, etc. Good grief.

 

[DRH90277]

This is a hot topic these days. Customers may react in a way contrary to the interests of the business. Once known, it is pretty easy to divert our dollars to other businesses. Threat of a sticker on their window might discourage this.

 

[am1]

CNBC has an article out about this relating to changes coming to Chicago.

 

[e.bram]

That is why all my timeshares and exchanges have kitchens. we only have to put up with supermarket food prices. Pay $10.00 for a bottle of wine , not a small glass.

 

[TravelTime]

A new restaurant in my town that just opened has a 20% surcharge for wages, benefits,etc. A tip is expected on top of that. And of course, there’s 8.9% sales tax.

This is a ridiculous way to get business. They should just quietly increase their prices by 20%.

 

[ScoopKona]

This is a ridiculous way to get business. They should just quietly increase their prices by 20%.

EVERYBODY has to do it at the same time. Otherwise, they may as well just close.

It's the same thing with resort fees and nickle-and-dime airlines. The government either has to legislate the practice away or people will have to put up with the status quo. "Menu prices must reflect the full price of the menu item with no mandatory extra charges." "Accommodations websites must list the entire price of the hotel, including any fees and taxes." That's the only way this ends. The only way.

Since people aren't going to learn to cook (for some reason, cooking is less popular than manual labor), those are the only options. People will complain about this all day long (and for months, apparently). But they won't stop eating out.

Any restaurant which decides to be the lone wolf and price fairly can put a closed sign on the door. Average people will choose the $50 meal with $50 in tips, taxes and fees over the $100 meal. Every time.

 

[slip]

From what I have seen, it's the places that add these fees are the ones that are the lone wolves.

I have recently been to Oahu, Maui and the Big Island. We went out to eat often and we were never charges any kind of fee. The one thing we noticed during our Oahu visit that the places that we went to often when we lived there, raised their prices.

I think we'll continue to see some raise their prices while others will charge the fees.

 

[am1]

Server says people who can’t tip ‘don’t deserve to eat out,’ tells them to ‘go to McDonald’s’

'Eating out is a privilege, not a right'

www.dailydot.com

Once servers are paid regular minimum wage there goes that argument. Be careful what you wish for.

But I do agree that if a server or anyone is unhappy at their job they should find a new one.

 

[dioxide45]

Server says people who can’t tip ‘don’t deserve to eat out,’ tells them to ‘go to McDonald’s’

'Eating out is a privilege, not a right'

www.dailydot.com

Once servers are paid regular minimum wage there goes that argument. Be careful what you wish for.

But I do agree that if a server or anyone is unhappy at their job they should find a new one.

The way servers should look at tips is in the average. Some people will tip 30%, some will tip 10%. Some will leave a minimum of $5 on a $10 lunch specia and some will leave $2l. In the end, it is the average that really matters. Don't worry about each individual providing some minimum percentage. That is the nature of the line of work. As you say, they don't like the pay structure, take it up with their management of look for other jobs that have different pay structures.

 

[Ken555]

Once servers are paid regular minimum wage there goes that argument. Be careful what you wish for.

California requires $15.50 per hour. Does that mean when you visit you don’t tip at all? Or, do you tip less than before? (FWIW, everyone I know still tips 15-25%, even with the increase to $15.50). Restaurant owners were screaming when this increase started, but they seem to be doing just fine after raising their prices and customers continued to tip.

Minimum Wages for Tipped Employees

www.dol.gov

Sent from my iPad using Tapatalk

 

[am1]

California requires $15.50 per hour. Does that mean when you visit you don’t tip at all? Or, do you tip less than before? (FWIW, everyone I know still tips 15-25%, even with the increase to $15.50). Restaurant owners were screaming when this increase started, but they seem to be doing just fine after raising their prices and customers continued to tip.

Minimum Wages for Tipped Employees

www.dol.gov

Sent from my iPad using Tapatalk

I have not been in California since before the pandemic.

She is the one making the argument that since they are paid less then minimum wage people need to tip. I agree with that but not how she presents it.

At $15.50 an hour 15%-25% tip is not how the system was set up. Seem they want their cake and eat it too. Next time I am in California I will take that into consideration when tipping. What do no tip restaurants have to pay servers in California to hire and retain employees?

 

[CO skier]

EVERYBODY has to do it at the same time. Otherwise, they may as well just close.

It's the same thing with resort fees and nickle-and-dime airlines. The government either has to legislate the practice away or people will have to put up with the status quo. "Menu prices must reflect the full price of the menu item with no mandatory extra charges." "Accommodations websites must list the entire price of the hotel, including any fees and taxes." That's the only way this ends. The only way.

California, apparently, will be leading the charge against all the "junk" fees starting July 1st.

Menu Prices at California Restaurants and Bars Are About to Go Up

It’s official: California’s so-called junk fee ban will require all restaurants and bars to remove mandatory fees and surcharges from diners’ bills.

sf.eater.com

"What is the purpose of this law?

The law is “intended to specifically prohibit drip pricing, which involves advertising a price that is less
than the actual price that a consumer will have to pay for a good or service.” Advertising or listing a
price that is less than what a consumer will eventually be charged is a form of deceptive advertising
that also violates existing state and federal law. Truthful price advertising and listing helps businesses
compete fairly on price and allows consumers to make accurate price comparisons."

 

[ScoopKona]

California, apparently, will be leading the charge against all the "junk" fees starting July 1st.

Good. I hope it catches on.

Companies have learned that the vast majority of people will go for the item that costs $50 with $50 in nickle-and-dime surcharges over the item that is priced at $100.

Since there's no changing human nature, all companies are forced to join the race to the bottom, or perish. I hope this also means the end of ridiculous sports/concert ticket fees (which cost more than the ticket), resort fees, "employee healthcare" fees and similar.

People will howl about inflation. But that's to be expected.

 

[dioxide45]

California, apparently, will be leading the charge against all the "junk" fees starting July 1st.

Menu Prices at California Restaurants and Bars Are About to Go Up

It’s official: California’s so-called junk fee ban will require all restaurants and bars to remove mandatory fees and surcharges from diners’ bills.

sf.eater.com

"What is the purpose of this law?

The law is “intended to specifically prohibit drip pricing, which involves advertising a price that is less
than the actual price that a consumer will have to pay for a good or service.” Advertising or listing a
price that is less than what a consumer will eventually be charged is a form of deceptive advertising
that also violates existing state and federal law. Truthful price advertising and listing helps businesses
compete fairly on price and allows consumers to make accurate price comparisons."

If it already violates existing laws, what makes anyone think some new law will all of a sudden be enforced?

 

[CO skier]

If it already violates existing laws, what makes anyone think some new law will all of a sudden be enforced?

Because California is a lawsuit happy state and there are hungry wolf law firms just waiting for this law to take effect, so they can file class action lawsuits. (Much easier done in local courts with state laws versus federal laws.)

 

[dioxide45]

Because California is a lawsuit happy state and there are hungry wolf law firms just waiting for this law to take effect, so they can file class action lawsuits. (Much easier done in local courts with state laws versus federal laws.)

We tend to see these types of charges at smaller mom and pop places. Hard to get a big payout from something like that.

 

[CO skier]

If it already violates existing laws, what makes anyone think some new law will all of a sudden be enforced?

Restaurateurs in San Francisco, at least, are shaking in their boots.

https://www.sfgate.com/food/article/sf-restaurants-junk-fees-law-19436419.php

 

[CO skier]

We tend to see these types of charges at smaller mom and pop places. Hard to get a big payout from something like that.

Just one example of a California "mom and pop place" getting slapped with a class action lawsuit before the new law.

This Reddit list is tracking L.A. restaurants charging 'service fees'

L.A. Redditors who've had enough of restaurant service fees are circulating a document that tracks establishments that tack unexpected charges onto bills.

www.latimes.com

"Some patrons — and even employees of the establishments themselves — have questions about the legitimacy of certain service fees. Are they fattening the pockets of business owners instead of going directly to employees? Why aren’t the increased costs of doing business baked into the cost of menu items?

Some Los Angeles service workers have lashed out against their employers for using such fees as an excuse to stiff workers.

Employees of Jon & Vinny’s in Brentwood filed a class-action lawsuit in Los Angeles County Superior Court on June 20 alleging that their employer violated California’s gratuity law.

The lawsuit against Joint Venture Restaurant Group, which owns Jon & Vinny’s, claims that confusion surrounding the 18% service fee attached to customer checks denied servers tips. (The popular Italian American restaurant also has locations in Beverly Hills, Fairfax and Hyde Park.)
The fee “reasonably appears to be a gratuity for the service staff,” the lawsuit says, because the service fee was 18%, comparable to what a customer may tip. Many patrons assumed this fee was a built-in tip going to their server, which was not the case, workers said.

California’s gratuity law requires that nonmanagerial service staff receive their tips in full, and employers may not keep any portion of those tips.

The restaurant group has denied those claims, saying through a spokesperson that the service charge model democratizes earnings for employees at every level and that customers are told that the fee is not the same as a tip.

The restaurant changed the language on customers’ checks about two weeks after the lawsuit was filed. As of July, the bottom of each receipt said, “The service charge is not a tip or gratuity, and is an added fee controlled by the restaurant that helps facilitate a higher living base wage for all of our employees. Please scan the QR Code at the top of the receipt for additional information, or speak with a manager.”

 

[echino]

The restaurant changed the language on customers’ checks about two weeks after the lawsuit was filed. As of July, the bottom of each receipt said, “The service charge is not a tip or gratuity, and is an added fee controlled by the restaurant that helps facilitate a higher living base wage for all of our employees. Please scan the QR Code at the top of the receipt for additional information, or speak with a manager.”

I am not tipping anything extra on top of 18% service charge, regardless of how it's described.

 

[CO skier]

I am not tipping anything extra on top of 18% service charge, regardless of how it's described.

Me, too. And that is exactly the basis for the class action lawsuit from the Jon & Vinny's employees:

The fee “reasonably appears to be a gratuity for the service staff,” the lawsuit says, because the service fee was 18%, comparable to what a customer may tip. Many patrons assumed this fee was a built-in tip going to their server, which was not the case, workers said.

 

[TolmiePeak]

Me, too. And that is exactly the basis for the class action lawsuit from the Jon & Vinny's employees:

The fee “reasonably appears to be a gratuity for the service staff,” the lawsuit says, because the service fee was 18%, comparable to what a customer may tip. Many patrons assumed this fee was a built-in tip going to their server, which was not the case, workers said.

Wouldn't it be easier for the employees to shift to a different restaurant?

 

[ScoopKona]

Wouldn't it be easier for the employees to shift to a different restaurant?

A great many of them are shifting to a different industry. Years of, "why don't you get a real job" finally paying expected dividends.

 

[jp10558]

I love the whole "If you don't want to pay a service charge, go to a restaurant that doesn't have one". But that's the whole point of these complaints, you don't find out about the service charge in advance. And the logic that cost of staying in business shouldn't be in the you know, cost of the product you provide and instead be a hidden fee is insane. I've always felt they should have to put tax in there too. If I was dictator for a day, I'd have any advertised price be what I can walk in to or order from and I pay that exact amount with cash or card and that is the entirety of the charge.

Sure, have line items in an invoice showing what's tax, what's shipping, hell have your "f u pay me fee" as a separate line if you like, if you think that somehow appeases customers to "justify" the price, but give me the actual price. Stop pretending that your price is lower than it is. And TBH, if you can't work while paying a wage that keeps employees and provides health care etc while making that cost clear to customers - your business just isn't viable.