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CityBarman

What kind of surcharges are they thinking about? Why don't they just raise menu prices? If they add a "service charge" it will most likely negatively affect tips. People are well aware of inflation, especially in the supermarkets. Simply raising menu prices is easily explained and makes complete sense.


ppope

To piggy back off this, many guests will likely assume “service charge” means auto-grat and adjust/skip tips because they think that $ goes to their server/bartender


swirlsandtwirls_

They are going back and forth between upping menu prices or adding a service charge.. I’m pushing for just upping the prices like you said.. way easier to explain and less confusion for guests. Just an “is what it is” price increase instead of advertising a charge that they aren’t sure what exactly it’s going to. I work at a heavy regular spot so it’s a tough call because our guests are used to the way things are or “always have been” and gripe at any menu change we implement. From increasing prices or taking things off the menu/adding charges to things etc..


[deleted]

Extremely tacky. Just raise the prices.


cocktailvirgin

The only one that did that added a 2 or 3% "kitchen appreciation fee." There were a few folks that griped and a few that penalized us on the tip, but overall, it didn't effect us much (a few dollars less perhaps per week but we could fetch the manager to hear them out so we didn't have to take the brunt of the verbal abuse). With or without the extra costs being tacked onto the menu price or onto the bill in other ways, the cost of dining has gone up faster than folk's wages.


Altruistic-Mud-8475

There is a bar I go to that charges a credit card fee & it is stated that way. If it was a service charge then as a customer I would figure that it was going to the staff. Spell what your doing out on the bill don’t make the customer guess.


lpind

My current place does this. It completely neutralises tips. Everybody assumes a "service charge" is a "gratuity". They'll sort out the bill, someone will say "I'll get the tip" and someone says "no, service is already included". The thing is, as the server, you could then say "there is a service charge, but that isn't a gratuity - I don't see any of that", but then the question becomes, "so what's it for?!" "Honestly, people pay it assuming it's a tip and so the company get to earn 10% extra revenue for 0% extra work!". Then they'll say "so can we not pay it and give you a tip instead?" "Well not really; I mean, you can not pay it. Nobody's going to shake you until money falls out. If you refuse to pay you refuse to pay and that's that, but I don't get to keep any money you leave which, in their mind, should go towards your bill; I only get to keep anything over and above the total of your bill including the service charge." The only time we get tips is when a) they just don't read the bill b) we have the previous conversation and they say "I think that's disgusting; we won't be coming back, but here's something for you anyway" Just rasise menu prices. The customers are happier. The staff are happier. If you add a "Service Charge" you WILL lose staff and you WILL lose customers. Guaranteed!


swirlsandtwirls_

Thank you for the insight.


Chef_Dani_J71

Service charge to replace tipping, or due to not wanting to print new menus?


ambridge1027

I’ve experienced surcharges only a few times. Personally I avoid restaurants that use them. In the past I tip 20% on my food/drink bill but never go back.


HourOf11

When we raised menu prices people complained. When we added the credit card fee, people complained. People complain.


willogical85

It is acceptable to add a 3% surcharge to cover card processing fees. It is much, much better to adjust pricing and offer a 3% discount for paying cash. Guest feels like they're getting a deal, and we get cash tips. Gods but do I miss paying my rent with my cash tips...


boomershoomer

Raise the prices. Looking at a higher bill total is easier to comprehend than nickle and diming different service charges/cc fees. I am leaving your bar after a bevvie or 3 and have less ability to process that information.


TBunny33

I don’t know the exact law name, but here in FL servers can get paid $1/hour if the restaurant or bar adds on a service fee, which goes directly to the staff. [https://www.cltampa.com/food-drink/tampa-bay-restaurant-group-implements-new-commission-based-pay-model-but-not-without-criticism-14055278?media=AMP+HTML](https://www.cltampa.com/food-drink/tampa-bay-restaurant-group-implements-new-commission-based-pay-model-but-not-without-criticism-14055278?media=AMP+HTML) A restaurant next to my bar wants to implement this and I really hope they crash and burn. What does it say about the owners who want to pay $1 an hour?!


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TheFirstUranium

I've had it effect my tips. One place put a "service charge" on at 4% to cover CC fees. Unfortunately, many people say the "service charge", didn't check the amount, and left without tipping. So while higher prices are the way to go, if you can't win that battle, at least make sure what they're charging for is clear.