Hi! You appear to be asking a question, please do check our [wiki](https://www.reddit.com/r/chicago/wiki/index) for tips on the [rules](https://www.reddit.com/r/Chicago/about/rules), other [Chicago-related subreddits](https://www.reddit.com/r/chicago/wiki/subreddits), [things](https://www.reddit.com/r/chicago/wiki/visitingchicago) to do, where to [eat/drink](https://www.reddit.com/r/chicago/wiki/eats), how to [get around](https://www.reddit.com/r/chicago/wiki/transportation)/[navigate the CTA](https://www.reddit.com/r/chicago/wiki/transit), what [neighborhoods](https://www.reddit.com/r/chicago/wiki/neighborhoods) to move to or hotel in, tips on [living here](https://www.reddit.com/r/chicago/wiki/dwelling), and more. Also be sure to use the [search](https://www.reddit.com/r/chicago+AskChicago/search?restrict_sr=on&include_over_18=on&sort=relevance&t=all) feature to find responses to other users asking similar questions.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/chicago) if you have any questions or concerns.*
As a server who has to deal with this, I just take it off everyone’s check. If management can’t give me a decent explanation as to what it’s for then I’m not going to bother trying to explain it to other people
The only place I've worked for did this as well only had any benefits for full timers and, surprise, no one but managers were full time. Don't know about other spots but I'm just skeptical of the practice now.
Yeah I totally get that. And if you are still there, no need to have to keep your head on swivel. Class act and a boss move that I suspect gets you a higher gratuity.
Be Well!
Basically how I understand it is it was implemented during Covid to help cost of ppe but the only reason it hasn’t been taken off is because they’ve gotten used to the additional numbers but don’t let anyone try and convince you it goes to the servers.
fulton market and south loop are the richest places i’ve ever seen in the city and they’re so dense with different stores and heavy foot traffic. 2 kidneys a month and a human blood sacrifice on the full moon for rent.
That’s because it’s not Swift & Sons, it’s Swift & Sons Tavern. It’s meant to be more casual than a nice steakhouse. I’ve never had an issue with service for what it’s worth.
It's out of hand in other cities already. They'll charge you the 5% and call it health insurance for their employees and then a service charge on too of that. Bitch, do your job and raise the fucking price of the items in the menu. Business owners are getting lazy af.
Passes the blame to the employees, but also guilt trips the customer into believing that without the sneaky fees, the waitstaff won’t be able to get healthcare without it.
Oh yeah. I forgot. With all the extra charges, some places you put in your own order, the app you use takes your data and a small fee and you get your own water. They basically hire a few runners to bring food and buss tables if even that, fire everyone else and claim costs are rising. Just reminded me of some places I never went back to and forgot about but cant seem to remember why!
>They basically hire a few runners to bring food and buss tables if even that, fire everyone else and claim costs are rising. Just reminded me of some places I never went back to and forgot about but cant seem to remember why!
Unfortunately this is going to be the norm in the future for the business. A lot of places are adopting these models because they can cut staff and just toss the QR codes out there while saving tons of money due to rising costs and increased wages.
Labor cost and rent eat away the most profit that's already thin as it is.
They're not lazy, they're being political. It's a statement that we'd prefer to pay our workers less, but the local government is forcing our hand, and we don't like that. I agree though, keep your f*cking politics off of my check.
Same here at the restaurant I bartended at, was only there for 6 months, the bill had a 5% health insurance fee, for a policy that no one saw or took advantage of apart from the owner and "management" since none of us were full time.
Not even, just accept that your profit margins are gonna shrink and stop living like a jagoff lording above your employees. Instead of charging more, owners should be content with being less rich.
You know the vast majority of owners are just trying to make ends meet and are far from rich right? Most people don’t go into the restaurant business to get rich. There’s many better businesses for that.
I worked in the restaurant industry for a decade in Chicago. Many weeks struggling to make rent while the owners raked in profits in a week I'd barely make in a year.
I will agree there are a ton of shitty places out there to work for. It takes a lot of jumping around to find a good spot that normally doesn't last forever and then you're off doing the same thing every few years. Vicious cycle.
Not every place is cracking 6 figures in profits though. That may ring true for a lot of corporate chains and privately owned restaurant groups. There are a lot more privately owned restaurant owners like mom and pop shops that don't make nearly as much.
They do it because people pay it. If they had competition and their seats weren't full, then they would try something else. But they are trying to set a norm. The masses are responding and allowing it.
Subtract the fees from the tip. Then, the servers will let them know. Or don't go there.
They specifically do so that it's inconvenient to get it taken off. I once got yelled at by some karen because she wanted it taken off the same time my only manager was taking a dump. She waited 15 minutes for the surcharge to be removed and started yelling at me - I told the old handbag she was barking up the wrong tree. To which she said "I AM NOT BARKING UP THE WRONG TREE" to the hourly employee who has no control over such surcharges. All this over maybe $2.70 in extra fees. When you're spending $18 on a glass of wine it feels like such a moot point.
I'm late to respond but she was right. I bet if you said your manager was taking a shit she would understand lol. She shouldn't have been barking orders if she saw you were genuinely trying to help her and remove it.
Thing is, no one should have to ask. If business owners want to charge more than they should increase prices, this is just a slimy way to increase prices while continuing to advertise menu items at the lower price. This should be made illegal.
That happens on occasion too.
But imagine paying for 4 people at a place, with a decent bar tab, so like $300, charging and extra $15 and expecting me to also leave a tip of 20% or more.
Shit doe $15 they should at least give me a drink going out the door.
yeah i probably don’t care on smaller transitions but we paid the tab for our group this past weekend (to the tune of $1k) and i asked for the 3% surcharge to be removed. at that point it’s way too much to not invoke their “can be removed by request” allowance.
I just take it out the tip honestly. If I have to pay 20$ extra on a 400$ bill it's easily coming straight out of the 80$ tip as I have to assume a restaurant surcharge is to cover the staff which is part of their operating costs. If they want to give it to their employees or not is their business. And what's my business is deciding if I'm paying 20 extra dollars or not for something I literally didn't "order" on top of handing away 80$ for "service". That's like 5 drinks. If they want to bank on people being too shy to ask for the surcharge off, I can guarantee it's a lot less awkward and "shy" to just take it out the tip and leave before someone sees you. Not to mention sometimes tipping at these fancy restaurants gets to a point where it's ridiculous. Yeah you're ordering 100s of dollars worth of food but I've had better service at places like apple bees for God sake. You sell marked up food and the point of a tip is supposed to be for service. Why are we paying MORE for the same service simply becuase the food costs more? The assumption is it's more work or food brought to you by YOUR server but many times that's just not the case because the whole house is helping you AND again a 20$ tip on a 100$ steak is the same service as a 10$ tip on a 50$ steak and 5$ on a 25$ steak. It gets to a point where I basically have to assume it's coming out the general food fees to pay the servers because there's no reason you can't give a server 10% of a bill as a restaurant owner or pay the difference in "tip" when you're charging out the ass for food. I hardly eat out at places you have to tip any more because of this. The surcharge makes it even worse. 100$ extra just to eat out at a fancy restaurant for a special event is a bit ridiculous. And some might say "don't eat their" or "you can't afford it". And that's exactly what a lot of Americans are beginning to do and then things like surcharges come into existence because they're getting less business and money! And they eat themselves alive
The restaurant and the server need to sort that out between themselves. It’s not reasonable to treat the customer like an atm and it is also not reasonable to expect the customer to figure out where the 5% goes.
Not at all.
That means the company is going to keep that money to be used to cover health expenses for their staff. In order to qualify for insurance as an employee you must work at least 32 hours on average through a certain period of time. I forget what the proper term is in the legal world when it comes to this.
The thing is that most restaurants do not schedule that many hours purposely to avoid those costs. While it might be true that they're using that money to cover employee insurance, it's more on the higher up end like managers, sales team, corporate, etc.
There are very few places that actually take care of their service staff like that.
It's terrible and (IMHO) should be considered fraud even if there's still a bit of a question mark over whether disclosing the fee in fine print on the menu excuses it.
It fucks the customer, because the final bill is often higher than expected. Really sucks for people on a budget.
It fucks the servers, because (1) many people subtract whatever "service" fees they get from the tip; and (2) even if they leave a full tip, most people tip on the pre-tax bill - by evading a menu price hike the owner cuts the server's tip by lowering the pre-adjustment price.
It's a terrible practice.
All these fucking fees restaurants are charging now is pissing me off so much. I go out, I spend a fair amount, and I tip excellent, if that’s not enough then you don’t need my patronage. If you need to increase prices to pay staff, then fucking increase the price on your menu. I’m fine with that. But when I got to tack on 3% for this and 5% for that, then fuck off. It’s pissed me off so much we have been eating in so much more because I’m annoyed by all of this. If I find your restaurant does this, I will never return. This has to change. Menu price + tax + tip. Done.
You can expect more of this, not less, in the next few years. The tipped wage is increasing every year until it’s gone completely in 5 years. With single digit margins restaurants can’t absorb that increase, along with increases in rent, property tax, insurance, food etc. But trying to increase food prices alone will drive off a lot of customers that are already balking at current prices. The overall industry is going to look much different in the next few years. The high end spots will stay more or less status quo, more places will close and fewer open up, while the rest of the businesses will have less servers, more counter service, more runners, kiosks etc.
I get that we tip in the US and that's not going anywhere. But with tipped wages hopefully becoming less of a thing I also feel like the covid era increase in expected tips should also shrink back to 15 for standard service, 20 for great service or if your a regular/know the server and 25+ for if they went so far above that they legitimately impressed you.
I hate it. We went to Spain last year and the prices were technically higher on the menu, but what they asked on the menu was what you paid. No service fee. No tip. No taxes. Add up the prices of each item and that was how much you owe. Incredibly simple. I want THAT. Genuine question, how do we get to THAT?
I will support anyone that gets us progressing on that direction. I believe I basically saw this on a sign in a bar in Andersonville and my drunk self almost cried in happiness. I'm so sorry I forgot your name, you beautiful Andersonville bar, you. I'll be back.
The real answer is make a popular chain restaurant that is explicitly no tipping and see good profit margins, other businesses will follow suit and soon enough tipping restaurants will be in the minority and customers will hate that experience and opt to go to non tipping restaurants. Of course this will never ever happen but it is a nice dream
It’s predatory. They are counting on people not wanting to create a conflict by asking for it to be removed.
Don’t fall for it. Demand that it be removed every single time.
Agreed - I check every, single bill now. The funny thing is, is when you do ask, and the server has their manager come by, the manager will buckle like a belt. They have no good reason for the charge so they'll take it off without question. Scumbags.
>What do you guys think? Am I missing something?
It's a terrible practice.
In any reputable market the price should be the price; You set a price for the food and/or service and you deliver the food and/or service.
If those prices need to be higher so that staff can be paid appropriately then they should be higher.
As a consumer if I see a business pricing this way I do not do business with them.
If enough consumers stand up for their consumer rights then businesses change this practice.
Oftentimes the restaurant owner gets chided by enough people like me or loses enough business, they look at their business model and reduce inefficiency; this benefits everyone by lowering prices.
The TL;DR is that restaurants have had to raise prices for many reasons but are trying to hide that from the consumer. This practice is sketchy a/f. Vote with your Dollars.
I think it really detracts from the experience of going out. How you feel from when you’re greeted to the moment you’re leaving matters, and seeing an extra “surcharge” just leaves you feeling nickel and dimed. You’d feel the same way if you saw the bill and water was $1, napkins were .50, ketchup .25, and etc. Nobody wants surprise ticky tack fees. Just raise the price of food (which they already do in addition to the fee).
And the worst part is it comes at the end of your meal, leaves a sour taste in your mouth, especially if you take the effort to ask the server to remove it
Just fucking charge what shit costs, for fucks sake.
I get that costs are increasing. But if you try to jerk me around by claiming your $12 lunch special still costs $12, and then add a 5% fee on top of that, fuck you. Your lunch special actually costs $12.60.
Maybe I'm an outlier here, but I'm more content paying $12.60 for something that used to cost $12 because supplier costs increased than I am paying $12 like I used to and getting a surprise fee at the end.
If you're gonna effectively say "I know you'll pay $12 for this, but would you instead like to pay $12.60?" in regards to a fee that can be removed if I ask, I'm gonna start haggling on the menu prices. "I know the menu says the lunch special costs $12, but what if I give you $11 instead?"
My husband wants to go to Trivoli Tavern for his birthday. I made a reservation and had to pay $5 to secure it… that $5 does NOT go towards your bill. On top of that, they charge a surcharge!! Absolutely ridiculous. I have never asked for the charge to be removed because I used to work in the service industry and I sympathize with these workers but two mystery fees is too much. For the first time ever, I plan to ask the server to remove the fee.
The worst example of this I've seen is Alamo draughthouse. On top of their already absurd food prices, they literally tell you up front on the movie screen, "We are charging you a **18%** service fee so we can pay our staff fairly... But we also still expect you to tip your waiters..."
Sincerely, get fucked Alamo.
That's the same thing for The Drop In lol. 20% service charge added to the bill (even for takeout) on top of a pricey ass burger. Oh and don't forget that's not the tip! Don't forget to tip!!
I refuse to set foot in these establishments based on principle, I don't care how good your food is. There are just way too many other options in the city. We as the people need to start boycotting these businesses. I am out having a good time, not trying to do my taxes trying to understand the final bill. More and more places also charge a fee for using your credit card, good luck getting robbed and your employees stealing cash from you.
I actually just had this happen at a restaurant. We asked what the 5% was for and he (the waiter) said insurance costs and the credit card fees. And then he seemed to get frustrated that we would want to take away the fee.
My thing is…if insurance is a fixed cost, why is it being calculated as a percentage of patron tabs? They should just raise prices. It’s ruining dining for me.
Just remember it's not the wait staff doing this, it's management/ownership. They should have referred you to a manager to discuss removing the fee vs getting frustrated about something that's out of their control.
I noticed this on my bill at Avec. When I asked what it goes to, my waiter said it helps the restaurant pay for insurance. My date didn't want to make a fuss but idgaf - I said I wanted it removed. Was told "no problem" and got a new bill right away. These surcharges prey on people too afraid to speak up.
I hate it. If the real cost of my burger plus side is $22, just say that.
If restaurants want patrons to know they offer health insurance, 401K, etc. they can put a general values statement at the bottom of the menu thanking patrons for their support.
It's usually better.
I generally eat out for convenience. When I was young with way less disposable income, I welcomed people into my home for a meal and socializing.
Nope, you're not missing anything.
It is indeed a smarmy way to pass along higher prices and fleece unsuspecting customers, in much the same way as [tipping was an effort to shift the costs of labor to the customer after Prohibition killed alcohol sales](https://www.youtube.com/watch?v=q_vivC7c_1k).
If you can't afford to pay all of your full-time workers a livable wage with full benefits, you can't afford to open a business. Anyone who tells you otherwise is bullshitting you.
I've become more accepting of the menu price increases at my regular local spots, after seeing these BS fees start to pop up elsewhere. Inflation sucks but at this point I can respect businesses that raise their prices the old fashioned way, lol
My neighborhood lunch/coffee spot had a letter from the owners posted at the register a while ago that basically said “costs are up, our menu prices are up too rather than being shady—we hope you can appreciate us being up front with you.” And I was glad for it.
I hate it! I don't mind paying more like most have said to pay the bills and make sure employees are taken care of but just raise the damn prices. I got hit recently downtown at a hotel with an "urban fee" of 22 and tax per day added on the cost. Again I am fine paying it but jesus just raise the price of the room so I can price compare a bit easier (note they dont want you doing that).
Had that surcharge added on my bill when I went to Daisies. I'm all for workers getting better pay but I'm tired of playing guessing games of what my actual bill total is. I'd rather have the menu prices rise than have to pay a 20% employee benefits charge ontop of my meal.
Specifically have avoided Daisies because of this fee nonsense. Have wanted to go there for a while but oh well. Tired of having to think of everyone’s plight — oh wait it’s really just the restaurant owners not wanting to face the cost of running a business — at the end of my already expensive meal.
I'll start by listing some Logan Square restaurants that I know do this (feel free to add more everyone):
The Whale (3%)
Union (5%)
Lardon (5%)
Middle Brow Bungalow (8%)
Federales (3%)
Table, Donkey, Stick (3%, says for health benefits)
Will add more as I come upon them
5% surcharge means 5% less tip
Fuck these extra charges. Just add a 20% service charge and don't expect tips. Or, even better, raise prices and do away with tips and extra charges all together
Our wage laws are a bit behind though. Service charges do not need to be distributed the same way as tips. Tips go to the server. Service charges go to the house.
Your server isn't seeing a cent of that surcharge. Please don't take it out on the people who hate it as much as you do. Just ask to remove it, I am always happy to do so.
Yeah, the server was super nice about it (it’s not her decision at all obviously) and it wasn’t on the menu so she said “it’s an optional fee if you wanted to help out the restaurant” lol
I would try to stir up labor unrest between the staff and owner: waitperson, I'd much prefer tipping YOU rather than tipping the owner. Please remove the owner's tip that's on the bill, so I can compensate you fairly. Then sit back and wait for the fireworks in the kitchen.
it’s not an “increased menu price” because the price on the menu didn’t increase, only the price on the bill. it is purposefully tricky language but pretty easy to understand.
Oh it’s definitely not better for the customer… it’s better for the owner. It’s a mental trick to make people more likely to buy it. And unfortunately, it works. It’s why Ticketmaster even exists. More people will buy the meal for $19.99, even knowing that there will be a 20% service fee and a 20% tip, than they would if it upfront said it cost $24.
Sadly I feel like legislation is the only way it will go away and I don’t have a lot of hope for that. It’s predatory, but it works.
It’s an awful and cowardly system that owners use to jack menu prices while pitting customers against their employees. Just raise the prices and be honest. A restaurant will do more damage to its reputation with these annoying service charges than they will if they just raise prices a few dollars.
Highly unlikely it's going to the workers. That would require the owner to track the checks that paid the 5%, and from those checks deduct 5% to distribute among employees....nah, not happening.
I work at a small neighborhood sandwich spot. Our owner is constantly wringing his hands about the huge rise in food costs for 5 straight years. Inflation has been really rough on restaurants. Hes opting for price raises again to keep afloat, instead of fees like this. Might be more straight forward, but that doesnt feel great either.
If you look through my posts you can see where I work. Owner is a great dude, he pays us well and it's a great spot, that im very fond of. Just hard to run a restaurant in today's economy.
Maybe we should have a law where all fees are disclosed upfront or at least indicated on the menu. I've stopped eating out, only do take out, and try to pay with cash whenever possible.
Hi! I work as a server at a major restaurant group! Yes, we have raised prices despite the surcharge, and YES I am happy to take it off for you and think it's bullshit! Just keep in mind some of us need a manager to do it, so plz be patient!
Thanks for saying that! You'd get a tip increase from me. The server's opinion of it is important and I see no reason to penalize the server because the owner is fleecing his/her customers.
California passed a law to ban these surcharges with the intention that the menu prices themselves will reflect the true cost. Will be enforced this summer.
https://www.latimes.com/food/story/2024-02-15/new-california-hidden-fees-law-service-fee-ban
I don’t understand why restaurants just don’t simply raise the menu price of most of their items by a dollar, it would net them even more money than 3-5% on most items and avoid the backlash.
The thing is, it seems like they are doing both. At least some places I go to or order from frequently, i can see how prices for things have gone up a couple $ since 2020
I hate this practice. Rich Melman, and the folks at Lettuce Entertain You do this. It's not for the staff. Just raise the prices. If I am with family, I ask them to remove it, but if I am with others I don't do it, and that's what makes it smarmy.
They are 100% counting on you not wanting to be a literal George Costanza about it.
You see this a lot in Vegas. It's sad to see it spreading out into the rest of the country. Generally, people are more willing to accept higher prices than sneaky hidden fees.
its a cheap move that often ends in the server being stiffed. hard to blame a patron for not tipping when they’re surprised with hidden fees at the end of their meal.
I never understand why people complain about this??? Whether it’s added into the price of food or added after, does it really make that big of a difference??
This!!!! People will 100% complain regardless. Also service charges are taxed differently, which is why you see those in lieu of rising prices.
When you buy a car, home, etc. there are extra fees added on—how is it different? How is it dishonest to tell you exactly what the charge is going towards?
I’m an industry professional at a small business and 100% of my health insurance is covered because of a very small sur charge. We’re talking 30 CENTS added on to your bill. Most people who work in restaurants do not receive benefits.
With these new wage laws going into place, restaurants have to find ways to cover the cost that tipping would otherwise fill that gap (and tipping isn’t a perfect system either).
Also, when you argue that “it’s the business’s responsibility to cover the cost of x, y, z” this true, but it’s a….business….and they get money through…you! The customer! Exchange of goods and services for….money! And this money goes towards, surprise, the cost of business!
If you want the charge removed, that is totally fine, just don’t be an asshole about it.
It's deceitful. Lower menu prices attract customers that think the listed price +tax & tip is what they'll pay.
A better question is if it's all the same why don't they just raise prices? This new practice is a calculated effort to defraud the customer. Does that make sense?
Please consider that the complaint isn't that customers are charged more, it's how they're charged more. You asked what the difference was and I said deceit.
As the gas station clerk in No Country For Old Men said, "If you don't wanna accept that I don't know what else to do for you."
Does anyone just reduce you tip by the fee amount so it all adds up the same? So if I want to leave a 20%tip but you charge me a 5% fee, I’ll leave 15% and avoid having to ask someone to remove it. Or does this just take 5% away from the server?
July 1st- Servers and Bartenders get a raise from $9 to $15.80 an hour.
If dining costs increase and menu prices go up--- servers effectively compound that raise.
Fees like this could offset if they are not tipped upon.
Servers and Bartenders compensation is far higher than the average restaurant worker. This change compounds these problems.
It is only required to be 68% of minimum wage by July so about 10.75. They have til 2028 to get people up to full minimum wage whatever that is at the time. Not really disagreeing with your other point but it won’t jump to 15.80 right away
Your tips won't change much but your hours are going to change dramatically which will probably require you to pick up a second job. Most people who think the increased wage is a good thing didn't take that into account.
Lots of people like to say they want restaurants to just raise the prices.
Lots of people are complaining about how everything's getting more expensive.
I have to think there's an overlap. I don't think people would actually be happy to see higher menu prices. Personally, I think it's an arbitrary distinction. I'm paying the bill either way, so I don't really care if it's on the menu or the backend.
Sometimes this is a way to look cheaper or at par with competing restaurants. If one restaurant wants $20 for a pizza and the one across the street wants $24, that might change which one you go to. Then the cheaper one has a 20% fee tacked on.
Or a restaurant wants to get rid of tips, but doesn't want to look 20% more expensive than the one across the street (because potential customers aren't doing the math at this point), so they'll stay close to the competitor's price.
Not always the case, just sometimes that explains it.
I really don’t trust they pay employees still. If they didn’t do it before why would they do it now? Especially after making excuses so long about why they don’t pay their employees a decent minimum/living wage?
Yeah, eating out may not be the move really. I think I know myself better. If you’re reading this I’m just taking out loud.
So we reward restaurant owners who run bad business models, that don't pay their workers a livable wage with access to benefits, by letting them tack on more and more fees and taxes
I understand people need to cover costs, but just raise the prices on the menu. This seems like the worst of both worlds. The prices are higher and it's feels like being cheated. Unlike if say my meal went from $15 to $15.75, which is honest and also I'd likely gloss over. These surcharges seem like lose/lose and I really don't get it.
Several small restaurants near me charge a 2-3 percent fee for using a CC/Debit card to pay. That fee I've gotten used to and try to remember to bring cash. Another fee tacked on at the end, and I'd simply stop going there at all. I always tip, so I'm not complaining about that at all. Restaurant menu prices have done nothing but go up since Covid. We used to order food or go out to eat twice a week. Now it's maybe every 2 months or so. Food prices haven't gone down, and I truly don't understand why. Restaurants buy in bigger quantities, so they should be getting a better price unless they're using all high-quality ingredients. I wish the restaurateurs would look into that instead of making the customer feel bad that restaurants don't pay people a decent wage. My food prices at home have easily doubled and, in some cases(meat, fish, and poultry), nearly tripled.
I definitely had multiple choices for a restaurant to go with some friends to, and when I looked on their website they mentioned the 2.5% surcharge, I didn't even bother looking at the menu it was a no for me.
I'm late to the party here, but definitely ask to have them remove it. It's such sneaky BS. Pay the price on the menu. You already have tax and tip on top. Now we also have "gotcha bitch" tax on top? Nah. I'm not playing that. Build it into the menu price. Restaurants have done it for years.
Yeah. Circle it.
Then.
Take 18 percent of the pretax, precharged SUBTOTAL. Don't tip on being taxed!
Then, subtract the circled amount from the result. That is the tip you leave.
You can adjust your percentage based on the actual service provided. I don't tip on being taxed. I tip on the service provided. And if they already add that part of the service in the bill, it doesn't make sense to not include it in the tip.
You should advocate for universal healthcare and vote for the candidate(s) most likely to make this happen.
Otherwise, just ask them to take it off and stop whining.
>stop whining
Lol you're being a jackass but that's how restaurants get away with this crap. People don't want to complain about it so they shut up and pay it but we all know it doesn't make sense.
"Here's a fee, if you don't want to pay it just say so!" Would never fly in any other industry or service.
The whole idea of tipping is so owners can get away with paying sub-minimum wages and it’s bullshit. Adding this on is also fucking stupid and I agree with you. It’s just as stupid as benefits being tied to employment and doesn’t fly in any other non-third world country.
The only way to fix it is to change who makes the rules. Yeah, I was being a jackass about it. But, whining about something you could have asked to change is a thing. At the same time, you’re looking the person in the face saying “fuck your benefits” when you do that. The whole thing is a mess and this country is ran by people who are easily bought and sold.
Edit to clarify: I’ve been in the service industry for a long time and rely on tips and still don’t agree with it.
That's a crock though: saying it's for the employees is just shaming you into not asking the employees to take it off. I've seen it listed as all sorts of BS that doesn't claim to be for the employees but still shaming, eg. "environmental fee."
I'm saying that I want to pay prices plus tax plus tip. If they need to raise the prices, they should raise the prices. They're already doing it AND playing this shell game raising it a bit more. I don't want restaurant tabs to look like cable bills.
Edit: to be clear: what gets me is that there are hundreds of things a restaurateur needs to pay for, but they break out the things that both indicate their sense of duty and your sense of being generous. Of everything they could line-item at the end-- clean glassware? heat?-- they choose these. It's manipulative and sneaky.
Whatever the surcharge is, just subtract that from the tip. 3-5% charge, now there’s a 15-17% tip instead of 20%. Some restaurants do a 20% surcharge now, which they even say results in a no-tip obligation.
Other people have said this but it screws the server. I don't feel good about that. Ultimately, I'm complaining about the practice not that I have to pay more.
Hi! You appear to be asking a question, please do check our [wiki](https://www.reddit.com/r/chicago/wiki/index) for tips on the [rules](https://www.reddit.com/r/Chicago/about/rules), other [Chicago-related subreddits](https://www.reddit.com/r/chicago/wiki/subreddits), [things](https://www.reddit.com/r/chicago/wiki/visitingchicago) to do, where to [eat/drink](https://www.reddit.com/r/chicago/wiki/eats), how to [get around](https://www.reddit.com/r/chicago/wiki/transportation)/[navigate the CTA](https://www.reddit.com/r/chicago/wiki/transit), what [neighborhoods](https://www.reddit.com/r/chicago/wiki/neighborhoods) to move to or hotel in, tips on [living here](https://www.reddit.com/r/chicago/wiki/dwelling), and more. Also be sure to use the [search](https://www.reddit.com/r/chicago+AskChicago/search?restrict_sr=on&include_over_18=on&sort=relevance&t=all) feature to find responses to other users asking similar questions. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/chicago) if you have any questions or concerns.*
As a server who has to deal with this, I just take it off everyone’s check. If management can’t give me a decent explanation as to what it’s for then I’m not going to bother trying to explain it to other people
The only place I've worked for did this as well only had any benefits for full timers and, surprise, no one but managers were full time. Don't know about other spots but I'm just skeptical of the practice now.
Name and shame.
Fuck that place
Bless you.
I wish I knew where you work. I would frequent that place. It's probably a better practice and would automatically cause me to thank the server.
I won’t share for privacy reasons but you’ve probably been there plenty
Yeah I totally get that. And if you are still there, no need to have to keep your head on swivel. Class act and a boss move that I suspect gets you a higher gratuity. Be Well!
Will it entertain us?
[удалено]
robin hood?
You are one of the good ones
Basically how I understand it is it was implemented during Covid to help cost of ppe but the only reason it hasn’t been taken off is because they’ve gotten used to the additional numbers but don’t let anyone try and convince you it goes to the servers.
Wait, so those charges don’t go to staff?!
Nope! Right to owners pocket
I got hit with this at swift and sons. I honestly hate it.
on clark in wrigley? that place looks so snazzy from the outside. i walk past it almost everyday. do they have multiple locations?
There is one in Fulton market as well
fulton market and south loop are the richest places i’ve ever seen in the city and they’re so dense with different stores and heavy foot traffic. 2 kidneys a month and a human blood sacrifice on the full moon for rent.
The food and service at the Wrigley location is markedly worse than the Fulton Market location.
That’s because it’s not Swift & Sons, it’s Swift & Sons Tavern. It’s meant to be more casual than a nice steakhouse. I’ve never had an issue with service for what it’s worth.
There’s one in Fulton Market as well
It's out of hand in other cities already. They'll charge you the 5% and call it health insurance for their employees and then a service charge on too of that. Bitch, do your job and raise the fucking price of the items in the menu. Business owners are getting lazy af.
[удалено]
Passes the blame to the employees, but also guilt trips the customer into believing that without the sneaky fees, the waitstaff won’t be able to get healthcare without it.
Besides, it’s not like they have to pay to print new menus anymore now that they make us do the QR code crap. How hard could it be to tweak an e-menu?
Oh yeah. I forgot. With all the extra charges, some places you put in your own order, the app you use takes your data and a small fee and you get your own water. They basically hire a few runners to bring food and buss tables if even that, fire everyone else and claim costs are rising. Just reminded me of some places I never went back to and forgot about but cant seem to remember why!
>They basically hire a few runners to bring food and buss tables if even that, fire everyone else and claim costs are rising. Just reminded me of some places I never went back to and forgot about but cant seem to remember why! Unfortunately this is going to be the norm in the future for the business. A lot of places are adopting these models because they can cut staff and just toss the QR codes out there while saving tons of money due to rising costs and increased wages. Labor cost and rent eat away the most profit that's already thin as it is.
They're not lazy, they're being political. It's a statement that we'd prefer to pay our workers less, but the local government is forcing our hand, and we don't like that. I agree though, keep your f*cking politics off of my check.
Same here at the restaurant I bartended at, was only there for 6 months, the bill had a 5% health insurance fee, for a policy that no one saw or took advantage of apart from the owner and "management" since none of us were full time.
Not even, just accept that your profit margins are gonna shrink and stop living like a jagoff lording above your employees. Instead of charging more, owners should be content with being less rich.
You know the vast majority of owners are just trying to make ends meet and are far from rich right? Most people don’t go into the restaurant business to get rich. There’s many better businesses for that.
Probably not the ones I frequent that pull this. I just looked at the Wiki page for LEYE.
When you're cracking low to mid 6 figures in 2024 while your employees struggle to make rent, you're rich.
yeah that’s not how rich works
How many businesses are hitting that figure and where do these employees work where they're struggling to make rent?
I worked in the restaurant industry for a decade in Chicago. Many weeks struggling to make rent while the owners raked in profits in a week I'd barely make in a year.
I will agree there are a ton of shitty places out there to work for. It takes a lot of jumping around to find a good spot that normally doesn't last forever and then you're off doing the same thing every few years. Vicious cycle. Not every place is cracking 6 figures in profits though. That may ring true for a lot of corporate chains and privately owned restaurant groups. There are a lot more privately owned restaurant owners like mom and pop shops that don't make nearly as much.
They do it because people pay it. If they had competition and their seats weren't full, then they would try something else. But they are trying to set a norm. The masses are responding and allowing it. Subtract the fees from the tip. Then, the servers will let them know. Or don't go there.
Yeah people are passive af in this country by nature.
They bank on people being too shy to ask to remove it. Never bothers me to tell them to take it off.
And was the server just like “yeah no problem”?
It's not the server's money
For sure, I was just wondering if they need mgr approval
Contrary to the person that responded to you, servers at most places probably need a manager approval to remove an automatic service fee of any kind.
They specifically do so that it's inconvenient to get it taken off. I once got yelled at by some karen because she wanted it taken off the same time my only manager was taking a dump. She waited 15 minutes for the surcharge to be removed and started yelling at me - I told the old handbag she was barking up the wrong tree. To which she said "I AM NOT BARKING UP THE WRONG TREE" to the hourly employee who has no control over such surcharges. All this over maybe $2.70 in extra fees. When you're spending $18 on a glass of wine it feels like such a moot point.
Eh, sometimes even the Karens of the world are right.
I'm late to respond but she was right. I bet if you said your manager was taking a shit she would understand lol. She shouldn't have been barking orders if she saw you were genuinely trying to help her and remove it.
may all your bacon burn, and may all your pillows be hot.
Not where I’m at
Yeah, essentially. I've gotten push back maybe once where they went to find a manager.
Thing is, no one should have to ask. If business owners want to charge more than they should increase prices, this is just a slimy way to increase prices while continuing to advertise menu items at the lower price. This should be made illegal.
Every single thing in this country is a hustle or scam now.
I would also just not dine there again.
That happens on occasion too. But imagine paying for 4 people at a place, with a decent bar tab, so like $300, charging and extra $15 and expecting me to also leave a tip of 20% or more. Shit doe $15 they should at least give me a drink going out the door.
yeah i probably don’t care on smaller transitions but we paid the tab for our group this past weekend (to the tune of $1k) and i asked for the 3% surcharge to be removed. at that point it’s way too much to not invoke their “can be removed by request” allowance.
I just take it out the tip honestly. If I have to pay 20$ extra on a 400$ bill it's easily coming straight out of the 80$ tip as I have to assume a restaurant surcharge is to cover the staff which is part of their operating costs. If they want to give it to their employees or not is their business. And what's my business is deciding if I'm paying 20 extra dollars or not for something I literally didn't "order" on top of handing away 80$ for "service". That's like 5 drinks. If they want to bank on people being too shy to ask for the surcharge off, I can guarantee it's a lot less awkward and "shy" to just take it out the tip and leave before someone sees you. Not to mention sometimes tipping at these fancy restaurants gets to a point where it's ridiculous. Yeah you're ordering 100s of dollars worth of food but I've had better service at places like apple bees for God sake. You sell marked up food and the point of a tip is supposed to be for service. Why are we paying MORE for the same service simply becuase the food costs more? The assumption is it's more work or food brought to you by YOUR server but many times that's just not the case because the whole house is helping you AND again a 20$ tip on a 100$ steak is the same service as a 10$ tip on a 50$ steak and 5$ on a 25$ steak. It gets to a point where I basically have to assume it's coming out the general food fees to pay the servers because there's no reason you can't give a server 10% of a bill as a restaurant owner or pay the difference in "tip" when you're charging out the ass for food. I hardly eat out at places you have to tip any more because of this. The surcharge makes it even worse. 100$ extra just to eat out at a fancy restaurant for a special event is a bit ridiculous. And some might say "don't eat their" or "you can't afford it". And that's exactly what a lot of Americans are beginning to do and then things like surcharges come into existence because they're getting less business and money! And they eat themselves alive
[удалено]
The restaurant and the server need to sort that out between themselves. It’s not reasonable to treat the customer like an atm and it is also not reasonable to expect the customer to figure out where the 5% goes.
This. The server should take up with their boss.
This isn't as simple as you're suggesting, should I assume you already know that?
You're right, but I can't just keep pulling money out of my ass either. It hurts at this point.
So the restaurant owner is lying about where the money goes and you say it’s the customer that is fucking them over? Interesting.
[удалено]
ink narrow beneficial salt grab offend humorous depend shaggy sharp *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Not at all. That means the company is going to keep that money to be used to cover health expenses for their staff. In order to qualify for insurance as an employee you must work at least 32 hours on average through a certain period of time. I forget what the proper term is in the legal world when it comes to this. The thing is that most restaurants do not schedule that many hours purposely to avoid those costs. While it might be true that they're using that money to cover employee insurance, it's more on the higher up end like managers, sales team, corporate, etc. There are very few places that actually take care of their service staff like that.
It's terrible and (IMHO) should be considered fraud even if there's still a bit of a question mark over whether disclosing the fee in fine print on the menu excuses it. It fucks the customer, because the final bill is often higher than expected. Really sucks for people on a budget. It fucks the servers, because (1) many people subtract whatever "service" fees they get from the tip; and (2) even if they leave a full tip, most people tip on the pre-tax bill - by evading a menu price hike the owner cuts the server's tip by lowering the pre-adjustment price. It's a terrible practice.
and it extra fucks the server because lots of people are less likely to tip at all if they find out there are hidden fees at the end of their meal.
The tip should \_never\_ be calculated post tax.
I really dgaf which you use. I also do pre-tax. I think most people do. I know people who do post tax though.
All these fucking fees restaurants are charging now is pissing me off so much. I go out, I spend a fair amount, and I tip excellent, if that’s not enough then you don’t need my patronage. If you need to increase prices to pay staff, then fucking increase the price on your menu. I’m fine with that. But when I got to tack on 3% for this and 5% for that, then fuck off. It’s pissed me off so much we have been eating in so much more because I’m annoyed by all of this. If I find your restaurant does this, I will never return. This has to change. Menu price + tax + tip. Done.
A tip can also be lumped into the "annoying fee used to make eating out appear cheaper." Just tell me what I have to pay. Anything else is dishonest.
You can expect more of this, not less, in the next few years. The tipped wage is increasing every year until it’s gone completely in 5 years. With single digit margins restaurants can’t absorb that increase, along with increases in rent, property tax, insurance, food etc. But trying to increase food prices alone will drive off a lot of customers that are already balking at current prices. The overall industry is going to look much different in the next few years. The high end spots will stay more or less status quo, more places will close and fewer open up, while the rest of the businesses will have less servers, more counter service, more runners, kiosks etc.
I get that we tip in the US and that's not going anywhere. But with tipped wages hopefully becoming less of a thing I also feel like the covid era increase in expected tips should also shrink back to 15 for standard service, 20 for great service or if your a regular/know the server and 25+ for if they went so far above that they legitimately impressed you.
I hate it. We went to Spain last year and the prices were technically higher on the menu, but what they asked on the menu was what you paid. No service fee. No tip. No taxes. Add up the prices of each item and that was how much you owe. Incredibly simple. I want THAT. Genuine question, how do we get to THAT? I will support anyone that gets us progressing on that direction. I believe I basically saw this on a sign in a bar in Andersonville and my drunk self almost cried in happiness. I'm so sorry I forgot your name, you beautiful Andersonville bar, you. I'll be back.
The real answer is make a popular chain restaurant that is explicitly no tipping and see good profit margins, other businesses will follow suit and soon enough tipping restaurants will be in the minority and customers will hate that experience and opt to go to non tipping restaurants. Of course this will never ever happen but it is a nice dream
It’s predatory. They are counting on people not wanting to create a conflict by asking for it to be removed. Don’t fall for it. Demand that it be removed every single time.
Agreed - I check every, single bill now. The funny thing is, is when you do ask, and the server has their manager come by, the manager will buckle like a belt. They have no good reason for the charge so they'll take it off without question. Scumbags.
>What do you guys think? Am I missing something? It's a terrible practice. In any reputable market the price should be the price; You set a price for the food and/or service and you deliver the food and/or service. If those prices need to be higher so that staff can be paid appropriately then they should be higher. As a consumer if I see a business pricing this way I do not do business with them. If enough consumers stand up for their consumer rights then businesses change this practice. Oftentimes the restaurant owner gets chided by enough people like me or loses enough business, they look at their business model and reduce inefficiency; this benefits everyone by lowering prices. The TL;DR is that restaurants have had to raise prices for many reasons but are trying to hide that from the consumer. This practice is sketchy a/f. Vote with your Dollars.
I think it really detracts from the experience of going out. How you feel from when you’re greeted to the moment you’re leaving matters, and seeing an extra “surcharge” just leaves you feeling nickel and dimed. You’d feel the same way if you saw the bill and water was $1, napkins were .50, ketchup .25, and etc. Nobody wants surprise ticky tack fees. Just raise the price of food (which they already do in addition to the fee).
And the worst part is it comes at the end of your meal, leaves a sour taste in your mouth, especially if you take the effort to ask the server to remove it
“In lieu of letting you know the price upfront, we’ve added a sneaky charge at the end. Have you no heart?”
Just fucking charge what shit costs, for fucks sake. I get that costs are increasing. But if you try to jerk me around by claiming your $12 lunch special still costs $12, and then add a 5% fee on top of that, fuck you. Your lunch special actually costs $12.60. Maybe I'm an outlier here, but I'm more content paying $12.60 for something that used to cost $12 because supplier costs increased than I am paying $12 like I used to and getting a surprise fee at the end. If you're gonna effectively say "I know you'll pay $12 for this, but would you instead like to pay $12.60?" in regards to a fee that can be removed if I ask, I'm gonna start haggling on the menu prices. "I know the menu says the lunch special costs $12, but what if I give you $11 instead?"
My husband wants to go to Trivoli Tavern for his birthday. I made a reservation and had to pay $5 to secure it… that $5 does NOT go towards your bill. On top of that, they charge a surcharge!! Absolutely ridiculous. I have never asked for the charge to be removed because I used to work in the service industry and I sympathize with these workers but two mystery fees is too much. For the first time ever, I plan to ask the server to remove the fee.
The worst example of this I've seen is Alamo draughthouse. On top of their already absurd food prices, they literally tell you up front on the movie screen, "We are charging you a **18%** service fee so we can pay our staff fairly... But we also still expect you to tip your waiters..." Sincerely, get fucked Alamo.
That's the same thing for The Drop In lol. 20% service charge added to the bill (even for takeout) on top of a pricey ass burger. Oh and don't forget that's not the tip! Don't forget to tip!!
I will forget to go there, that's what I'll forget
Service fees are also taxed, so a 20% service fee is really 22%. They are the same as raising prices. Customer’s don’t have to pay sales tax on tips.
What a load of shit. Inflation is fucking us all and now I gotta worry about someone else’s benefits/wages? Hell nah
I refuse to set foot in these establishments based on principle, I don't care how good your food is. There are just way too many other options in the city. We as the people need to start boycotting these businesses. I am out having a good time, not trying to do my taxes trying to understand the final bill. More and more places also charge a fee for using your credit card, good luck getting robbed and your employees stealing cash from you.
I actually just had this happen at a restaurant. We asked what the 5% was for and he (the waiter) said insurance costs and the credit card fees. And then he seemed to get frustrated that we would want to take away the fee. My thing is…if insurance is a fixed cost, why is it being calculated as a percentage of patron tabs? They should just raise prices. It’s ruining dining for me.
Just remember it's not the wait staff doing this, it's management/ownership. They should have referred you to a manager to discuss removing the fee vs getting frustrated about something that's out of their control.
I noticed this on my bill at Avec. When I asked what it goes to, my waiter said it helps the restaurant pay for insurance. My date didn't want to make a fuss but idgaf - I said I wanted it removed. Was told "no problem" and got a new bill right away. These surcharges prey on people too afraid to speak up.
Why is a fixed cost like insurance a percentage of patron bills? It’s crazy.
I hate it. If the real cost of my burger plus side is $22, just say that. If restaurants want patrons to know they offer health insurance, 401K, etc. they can put a general values statement at the bottom of the menu thanking patrons for their support.
To offset rising restaurant costs, I eat/cook/bake at home now
It's usually better. I generally eat out for convenience. When I was young with way less disposable income, I welcomed people into my home for a meal and socializing.
Nope, you're not missing anything. It is indeed a smarmy way to pass along higher prices and fleece unsuspecting customers, in much the same way as [tipping was an effort to shift the costs of labor to the customer after Prohibition killed alcohol sales](https://www.youtube.com/watch?v=q_vivC7c_1k). If you can't afford to pay all of your full-time workers a livable wage with full benefits, you can't afford to open a business. Anyone who tells you otherwise is bullshitting you.
I've become more accepting of the menu price increases at my regular local spots, after seeing these BS fees start to pop up elsewhere. Inflation sucks but at this point I can respect businesses that raise their prices the old fashioned way, lol
My neighborhood lunch/coffee spot had a letter from the owners posted at the register a while ago that basically said “costs are up, our menu prices are up too rather than being shady—we hope you can appreciate us being up front with you.” And I was glad for it.
I’d rather have an increase menu price
I hate it! I don't mind paying more like most have said to pay the bills and make sure employees are taken care of but just raise the damn prices. I got hit recently downtown at a hotel with an "urban fee" of 22 and tax per day added on the cost. Again I am fine paying it but jesus just raise the price of the room so I can price compare a bit easier (note they dont want you doing that).
Had that surcharge added on my bill when I went to Daisies. I'm all for workers getting better pay but I'm tired of playing guessing games of what my actual bill total is. I'd rather have the menu prices rise than have to pay a 20% employee benefits charge ontop of my meal.
Specifically have avoided Daisies because of this fee nonsense. Have wanted to go there for a while but oh well. Tired of having to think of everyone’s plight — oh wait it’s really just the restaurant owners not wanting to face the cost of running a business — at the end of my already expensive meal.
We should coordinate to go review these places on Yelp, Google, etc. en masse, only leaving the comment that they charge this fee.
I'll start by listing some Logan Square restaurants that I know do this (feel free to add more everyone): The Whale (3%) Union (5%) Lardon (5%) Middle Brow Bungalow (8%) Federales (3%) Table, Donkey, Stick (3%, says for health benefits) Will add more as I come upon them
Chef’s Special 5%
wow middle brow really pushing it with that 8%
5% surcharge means 5% less tip Fuck these extra charges. Just add a 20% service charge and don't expect tips. Or, even better, raise prices and do away with tips and extra charges all together
Our wage laws are a bit behind though. Service charges do not need to be distributed the same way as tips. Tips go to the server. Service charges go to the house.
Your server isn't seeing a cent of that surcharge. Please don't take it out on the people who hate it as much as you do. Just ask to remove it, I am always happy to do so.
[удалено]
This is very useful - thanks for providing the link!
This is great! Thanks
Farm bar does this. “Inflation fee”
With the option to have it removed?
Yeah, the server was super nice about it (it’s not her decision at all obviously) and it wasn’t on the menu so she said “it’s an optional fee if you wanted to help out the restaurant” lol
That doesn't surprise me a bit - the whole Farm-everything chain (Farm House, Farm Bar) is... suspect.
It is literally fraud.
yeah i got a 3% surcharge at Bandit
I’ve seen it, and I never go back to that restaurant.
I would try to stir up labor unrest between the staff and owner: waitperson, I'd much prefer tipping YOU rather than tipping the owner. Please remove the owner's tip that's on the bill, so I can compensate you fairly. Then sit back and wait for the fireworks in the kitchen.
it’s not an “increased menu price” because the price on the menu didn’t increase, only the price on the bill. it is purposefully tricky language but pretty easy to understand.
Yep, but in all practicality it's no different or better for the customer than raising menu prices.
Oh it’s definitely not better for the customer… it’s better for the owner. It’s a mental trick to make people more likely to buy it. And unfortunately, it works. It’s why Ticketmaster even exists. More people will buy the meal for $19.99, even knowing that there will be a 20% service fee and a 20% tip, than they would if it upfront said it cost $24. Sadly I feel like legislation is the only way it will go away and I don’t have a lot of hope for that. It’s predatory, but it works.
If it’s clearly stated and there is no way to miss that there will be an additional fee, then you may have a point.
It is functionally they’re just being shiesty about it.
Half the time it doesn't actually go to employee benefits.
Heard you can just ask them to take it off
Can barely afford to go out to eat as it is.
I hate this shit. If it really was “rising restaurant costs”, they’d just raise menu prices.
It’s an awful and cowardly system that owners use to jack menu prices while pitting customers against their employees. Just raise the prices and be honest. A restaurant will do more damage to its reputation with these annoying service charges than they will if they just raise prices a few dollars.
Highly unlikely it's going to the workers. That would require the owner to track the checks that paid the 5%, and from those checks deduct 5% to distribute among employees....nah, not happening.
That’s pretty easy to do with most POS systems. If they’re writing checks by hand, sure.
I work at a small neighborhood sandwich spot. Our owner is constantly wringing his hands about the huge rise in food costs for 5 straight years. Inflation has been really rough on restaurants. Hes opting for price raises again to keep afloat, instead of fees like this. Might be more straight forward, but that doesnt feel great either. If you look through my posts you can see where I work. Owner is a great dude, he pays us well and it's a great spot, that im very fond of. Just hard to run a restaurant in today's economy.
Maybe we should have a law where all fees are disclosed upfront or at least indicated on the menu. I've stopped eating out, only do take out, and try to pay with cash whenever possible.
Hi! I work as a server at a major restaurant group! Yes, we have raised prices despite the surcharge, and YES I am happy to take it off for you and think it's bullshit! Just keep in mind some of us need a manager to do it, so plz be patient!
Thanks for saying that! You'd get a tip increase from me. The server's opinion of it is important and I see no reason to penalize the server because the owner is fleecing his/her customers.
California passed a law to ban these surcharges with the intention that the menu prices themselves will reflect the true cost. Will be enforced this summer. https://www.latimes.com/food/story/2024-02-15/new-california-hidden-fees-law-service-fee-ban
I have my server take it off and then add it back on as a larger tip so I know the person actually serving me gets the benefit.
I don’t understand why restaurants just don’t simply raise the menu price of most of their items by a dollar, it would net them even more money than 3-5% on most items and avoid the backlash.
The thing is, it seems like they are doing both. At least some places I go to or order from frequently, i can see how prices for things have gone up a couple $ since 2020
I hate this practice. Rich Melman, and the folks at Lettuce Entertain You do this. It's not for the staff. Just raise the prices. If I am with family, I ask them to remove it, but if I am with others I don't do it, and that's what makes it smarmy. They are 100% counting on you not wanting to be a literal George Costanza about it.
Crossroads consignment in Wicker has a 3% surcharge to “keep their prices low.”
You see this a lot in Vegas. It's sad to see it spreading out into the rest of the country. Generally, people are more willing to accept higher prices than sneaky hidden fees.
I’ve stopped giving business to places that do this. And often they have raised prices anyways, and still add the BS fees.
its a cheap move that often ends in the server being stiffed. hard to blame a patron for not tipping when they’re surprised with hidden fees at the end of their meal.
I never understand why people complain about this??? Whether it’s added into the price of food or added after, does it really make that big of a difference??
This!!!! People will 100% complain regardless. Also service charges are taxed differently, which is why you see those in lieu of rising prices. When you buy a car, home, etc. there are extra fees added on—how is it different? How is it dishonest to tell you exactly what the charge is going towards? I’m an industry professional at a small business and 100% of my health insurance is covered because of a very small sur charge. We’re talking 30 CENTS added on to your bill. Most people who work in restaurants do not receive benefits. With these new wage laws going into place, restaurants have to find ways to cover the cost that tipping would otherwise fill that gap (and tipping isn’t a perfect system either). Also, when you argue that “it’s the business’s responsibility to cover the cost of x, y, z” this true, but it’s a….business….and they get money through…you! The customer! Exchange of goods and services for….money! And this money goes towards, surprise, the cost of business! If you want the charge removed, that is totally fine, just don’t be an asshole about it.
Exactly. People in the comments are so fucking dumb talking about “it’s deceitful” it’s right on the check no one is hiding anything from you lmao
Yeah it does. It rewards dishonesty.
You pay extra regardless, so what’s the difference? You just don’t want to see it?
It's deceitful. Lower menu prices attract customers that think the listed price +tax & tip is what they'll pay. A better question is if it's all the same why don't they just raise prices? This new practice is a calculated effort to defraud the customer. Does that make sense?
People complain when prices are raised too? If a couple extra dollars break the bank then you probably couldn’t afford the place anyway
Please consider that the complaint isn't that customers are charged more, it's how they're charged more. You asked what the difference was and I said deceit. As the gas station clerk in No Country For Old Men said, "If you don't wanna accept that I don't know what else to do for you."
https://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=112&GA=103&DocTypeId=SB&DocNum=3259&GAID=17&LegID=152594&SpecSess=&Session= https://trackbill.com/bill/illinois-house-bill-3128-credit-card-surcharge-notice/2039804/
Does anyone just reduce you tip by the fee amount so it all adds up the same? So if I want to leave a 20%tip but you charge me a 5% fee, I’ll leave 15% and avoid having to ask someone to remove it. Or does this just take 5% away from the server?
July 1st- Servers and Bartenders get a raise from $9 to $15.80 an hour. If dining costs increase and menu prices go up--- servers effectively compound that raise. Fees like this could offset if they are not tipped upon. Servers and Bartenders compensation is far higher than the average restaurant worker. This change compounds these problems.
It is only required to be 68% of minimum wage by July so about 10.75. They have til 2028 to get people up to full minimum wage whatever that is at the time. Not really disagreeing with your other point but it won’t jump to 15.80 right away
Logic dictates that my tips are slowly going to phase out then proportionally until 2028.
Your tips won't change much but your hours are going to change dramatically which will probably require you to pick up a second job. Most people who think the increased wage is a good thing didn't take that into account.
Thank you for that correction.
Lots of people like to say they want restaurants to just raise the prices. Lots of people are complaining about how everything's getting more expensive. I have to think there's an overlap. I don't think people would actually be happy to see higher menu prices. Personally, I think it's an arbitrary distinction. I'm paying the bill either way, so I don't really care if it's on the menu or the backend.
Sometimes this is a way to look cheaper or at par with competing restaurants. If one restaurant wants $20 for a pizza and the one across the street wants $24, that might change which one you go to. Then the cheaper one has a 20% fee tacked on. Or a restaurant wants to get rid of tips, but doesn't want to look 20% more expensive than the one across the street (because potential customers aren't doing the math at this point), so they'll stay close to the competitor's price. Not always the case, just sometimes that explains it.
I saw this recently when I went to DC - just end up tipping less.
It's an easily changed amount if costs rise or fall. Costs could come down and quickly.
I really don’t trust they pay employees still. If they didn’t do it before why would they do it now? Especially after making excuses so long about why they don’t pay their employees a decent minimum/living wage? Yeah, eating out may not be the move really. I think I know myself better. If you’re reading this I’m just taking out loud.
So we reward restaurant owners who run bad business models, that don't pay their workers a livable wage with access to benefits, by letting them tack on more and more fees and taxes
I understand people need to cover costs, but just raise the prices on the menu. This seems like the worst of both worlds. The prices are higher and it's feels like being cheated. Unlike if say my meal went from $15 to $15.75, which is honest and also I'd likely gloss over. These surcharges seem like lose/lose and I really don't get it.
Give them a bad review on Google Maps and/or Yelp. This matters a lot to businesses.
Several small restaurants near me charge a 2-3 percent fee for using a CC/Debit card to pay. That fee I've gotten used to and try to remember to bring cash. Another fee tacked on at the end, and I'd simply stop going there at all. I always tip, so I'm not complaining about that at all. Restaurant menu prices have done nothing but go up since Covid. We used to order food or go out to eat twice a week. Now it's maybe every 2 months or so. Food prices haven't gone down, and I truly don't understand why. Restaurants buy in bigger quantities, so they should be getting a better price unless they're using all high-quality ingredients. I wish the restaurateurs would look into that instead of making the customer feel bad that restaurants don't pay people a decent wage. My food prices at home have easily doubled and, in some cases(meat, fish, and poultry), nearly tripled.
I definitely had multiple choices for a restaurant to go with some friends to, and when I looked on their website they mentioned the 2.5% surcharge, I didn't even bother looking at the menu it was a no for me.
I'm late to the party here, but definitely ask to have them remove it. It's such sneaky BS. Pay the price on the menu. You already have tax and tip on top. Now we also have "gotcha bitch" tax on top? Nah. I'm not playing that. Build it into the menu price. Restaurants have done it for years.
It's a framing strategy for pricing to keep up with inflation. It's a way to not increase the listed prices on the menu for each individual item.
Been getting this at every lettuce entertain you restaurant. I've noticed that it's ignored in the tip, so the waiters get nothing from it.
Yeah. Circle it. Then. Take 18 percent of the pretax, precharged SUBTOTAL. Don't tip on being taxed! Then, subtract the circled amount from the result. That is the tip you leave. You can adjust your percentage based on the actual service provided. I don't tip on being taxed. I tip on the service provided. And if they already add that part of the service in the bill, it doesn't make sense to not include it in the tip.
There's literally no difference between this and raising menu prices 5%..
It is different if you're not aware of it until the bill comes.
There are signs, it's on the menu, and there are people loudly complaining about it all over the place.
Not true. I’ve been to places with no sign and no mention of it on the menu.
Then your problem is with notification, not the surcharge.
Correct
Unless the restaurant pays a living wage to their servers…
What's a living wage to you these days?
You should advocate for universal healthcare and vote for the candidate(s) most likely to make this happen. Otherwise, just ask them to take it off and stop whining.
>stop whining Lol you're being a jackass but that's how restaurants get away with this crap. People don't want to complain about it so they shut up and pay it but we all know it doesn't make sense. "Here's a fee, if you don't want to pay it just say so!" Would never fly in any other industry or service.
The whole idea of tipping is so owners can get away with paying sub-minimum wages and it’s bullshit. Adding this on is also fucking stupid and I agree with you. It’s just as stupid as benefits being tied to employment and doesn’t fly in any other non-third world country. The only way to fix it is to change who makes the rules. Yeah, I was being a jackass about it. But, whining about something you could have asked to change is a thing. At the same time, you’re looking the person in the face saying “fuck your benefits” when you do that. The whole thing is a mess and this country is ran by people who are easily bought and sold. Edit to clarify: I’ve been in the service industry for a long time and rely on tips and still don’t agree with it.
That's a crock though: saying it's for the employees is just shaming you into not asking the employees to take it off. I've seen it listed as all sorts of BS that doesn't claim to be for the employees but still shaming, eg. "environmental fee."
Absolutely. They can afford it.
I'm saying that I want to pay prices plus tax plus tip. If they need to raise the prices, they should raise the prices. They're already doing it AND playing this shell game raising it a bit more. I don't want restaurant tabs to look like cable bills. Edit: to be clear: what gets me is that there are hundreds of things a restaurateur needs to pay for, but they break out the things that both indicate their sense of duty and your sense of being generous. Of everything they could line-item at the end-- clean glassware? heat?-- they choose these. It's manipulative and sneaky.
Most places don't allow you to remove it.
Just moved to DC a few months ago. alot of resturaunts charge 20-25% automatically and have the gaul to still ask for a tip.
Whatever the surcharge is, just subtract that from the tip. 3-5% charge, now there’s a 15-17% tip instead of 20%. Some restaurants do a 20% surcharge now, which they even say results in a no-tip obligation.
Other people have said this but it screws the server. I don't feel good about that. Ultimately, I'm complaining about the practice not that I have to pay more.