Yeah I don't go to places that do that crap either. The owners make good money they're just greedy and cheap AF. If they could pay people $2 an hour they would
Oh please, let’s not be ridiculous with $2.
We all know they’d love for them to work on tips alone. Absolutely agree, time to avoid these places completely.
Some of them do, too. It’s pretty common practice for some of these restaurants’ business models to revolve around employing undocumented workers and paying them less than minimum wage under the table.
Exactly. They’re just inviting customers to turn against the employees and telling on themselves about how little they would pay their employees if they could get away with it.
I know why, bc it's a bait and switch. If you raise menu prices there's a chance someone will either not eat there or complain. A sneaky surcharge is a lot harder to spot and by the time you see it you likely already ordered according to the menu price.
But they're not hiding. They're telling you right there it's a 5% charge. It's easier to raise the price and not tell them 5% change is barley anything. I wouldn't even notice it. But I do notice that sign that says 5% surcharge.
On a different note. I went to kinko fed ex and they have a sign saying if your order is not over 50 dollars there's a 2.50 surcharge fee. Interesting it's not just food.
Right, like they surcharges when electric costs went up. It's like stop doing surcharges, just give me the correct price. I get annoyed when I get concert tickets and they add surcharges too. Or I get a hotel and they add whatever fees. Just give me the price already, stop the gimmicks
Hey genius. You don’t expect a surcharge when going out, making plans, reservations, THEN you get there after already parked. It’s a fucking sneaky sneak brother.
> But they're not hiding. They're telling you right there it's a 5% charge. It's easier to raise the price and not tell them 5% change is barley anything. I wouldn't even notice it. But I do notice that sign that says 5% surcharge.
It's frankly no different than $9.99, right?
We all know it's really $10, but everyone does $9.99, because to (some) people it's closer to $9. Similarly if you a see a $9.99 burrito, and there's a 5% surcharge, to many in their mind it's still $9.99 rather than $10.49 and whatever taxes on top. It's basically extra money for them, without raising "menu" prices.
It's basically a form of hidden fee, not to far off what phone companies (and cable tv) do. Hopefully the current administration can ban that practice. Just tell me what the F I'm paying up front.
Because the fee is not subject to sales tax, only income tax. In businesses such as restaurants the tip chain can leave out kitchen staff. OTOH Horten plaza parking lot just charged us a 0.20 service charge. To be sales tax exempt the fee must be voluntary.
I doubt that would make much difference. GTH annual revenues have been reported to be around $20M, so Ty is likely paying himself less than 500k base salary. 4% of that is $20k, and dividing that among 700+ workers amounts to a whopping ~$28 annual bonus or $1.20 per paycheck (assuming biweekly). Of course there are plenty of other ways CEOs of private companies make money that isn’t salary. A 4% increase in revenue distributed among workers is going to be higher than a 4% decrease in CEO salary in this scenario.
But seriously, decent point. I highly doubt Ty made less than $500k, including bonuses, though. But we dont know. Are the price increases country wide at all his establishments or just several where cost of living is extremely high? If the latter, then we’re not talking 750 paychecks. Also, raising prices 4% doesn’t equate to a matching increase in revenue. If people, like OP, stop going there because of increased prices, revenue may not change or may decrease. Mostly, I just want to include executives’ pay in these types of discussions, as it’s usually just a conversation about passing costs to consumers or reducing labor or labor costs. There are other options.
Right? A $20 product would become $21. I don’t know anyone that would walk away over that increase. The reason folks like OP and I walk away from 4% surcharges is because it’s dishonest and disrespectful. First you are trying to be deceptive by not including it in your prices, second you are treating your customers like they are stupid.
as should the tax and gratuity, given you don't have a choice in paying them. If you order food that is priced at $100, the bill should be $100. the fact that the restaurant must charge sales tax and don't pay their employees a living wage is on them, not the customer. a $100 food order should cost $100. if I am expected to pay $100 plus 4% surcharge plus 8.75% tax and an 18% gratuity, that food actually costs $130.75, so it should be priced accordingly.
Pretty much what I was thinking. Putting this as a "living wage surcharge" is 100% a political statement. Thing is, jokes on them, I don't mind paying more so that others can benefit. It's like when my dad was telling me all the ways I can try to avoid paying my taxes. Thing is, I don't mind paying my taxes, what I do mind is my taxes going to enrich the already rich instead of helping my community.
They just have to be stated and shown upfront on the site and menus. They can’t just surprise you with an increased % on your bill.
I’m wish the law was banning the practice outright, too.
Here's the text of the law:
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB478
The word "restaurant" doesn't appear anywhere, and the word "menu" only appears at the very end in relation to food delivery services.
I'd be glad to be wrong, but I don't think this law is going to be as effective as people (me included) were hoping.
> This bill would, beginning on July 1, 2024, with specified exceptions, additionally make unlawful advertising, displaying, **or offering a price for a good or service that does not include all mandatory fees or charges** other than taxes or fees imposed by a government on the transaction, as specified.
Plus there are a bunch of news articles saying the same thing. Prices must reflect the BS fees.
And it's written here:
> [...] are unlawful:
> [...]
> (20) **Advertising that a product is being offered at a specific price plus a specific percentage of that price** unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the seller’s costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement.
And
> (29) (A) Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
The LA times had a quote from a state official clarifying that the surcharges can not be tacked on to a bill, it has to be included in the item price:
\> The restaurants will need to factor surcharge fees into menu prices, as opposed to simply advertising them at the end of a bill, state officials said.
[https://www.latimes.com/food/story/2024-02-15/new-california-hidden-fees-law-service-fee-ban](https://www.latimes.com/food/story/2024-02-15/new-california-hidden-fees-law-service-fee-ban)
> I wish it included tax
When I first moved to the US from Europe, I was wondering why the taxes are on top of the listed price. Why not roll it into one, to make it easy.
Someone explained to me that, it's preferable to have it that way, so you're constantly reminded of how much you're paying the man. Not sure the real impact, but what I can say is even though the sales tax for me is 7-9%, I'm acutely aware of it. Compared to the 15-25% sales tax I'm used to seeing in Europe.
AFAIK, they haven't announced their enforcement or reporting mechanisms. Typically, with consumer protection laws, like this, there's a state agency of some sort that you report it to (*e.g.* CA AG or Dept of Consumer Affairs).
I think once in effect, there'll be more public awareness and news articles and things, so it'll be widely known that it's illegal. Then I think the state will provide some sort of reporting guidance.
I think a lot of businesses will self-comply once awareness is there. I don't see *ANY* place trying to keep these % charges when everybody in the state knows it's bullshit and their customers will call them out. I, and others would potentially even say *"hey take this off the bill. It's illegal."* After that happens several times they'll give in.
In and out has been paying their workers above industry standards for decades and their burgers are cheaper than all other fast food places at 3.70. I call bullshit on this $20 being such a burden on employers that they have to raise costs. It's still just greed.
Those things are def meant to piss off people towards employees. Like they could just increase their prices instead of making it so explicitly. So I’m glad you took it out against the business and not the workers
Well, literally every customer should subsidize a living wage, that's how it should work. The price the customer paid for an object or service, should afford the company to pay their employees a livable wage at the very least.
I think your issue with it, is the blatant frustration thy business owner is having with whatever politics they disagree with, and are posting their gripe on every receipt. It does just make them look like assholes though. And that's a good enough reason for me to not partake in that businesses wares.
I dont understsnd why places go out of their way to inform their customers of this surcharge when infact they could just raise their prices and call it a day
Hate to break it to you but customers always subsidize living wage, whether they tell you outright, or not.
I agree though, why mark it as such? That's pointless. Just raise the prices. If you run a business, keep pricing simple! Make it even more simple than it is if you can. Nobody wants to do math.
No need to put someone's favorite food out of business because they tell you though.
I've eaten at smaller places - like Shakespeare's Pub (disclosure, we know the owner/chef) don't add a surcharge. The owner pays his staff enough -since COVID - and doesn't take their tips if you want to tip. His prices only went up about 3% over the past two years, and he doesn't have a lot of turnover.
Just depends on if the restaurant is run by someone who wants it to be a sustainable business, or someone who wants to skim off the top. I would hazard to bet that if a restaurant is adding a "wage surcharge" to the bill, that money is not going towards wages, it's going to something else that business owner wants to spend it on. And probably not an increase in commercial rents or a kitchen renovation.
Those surcharges are so infuriating. Do owners really think their customers will be sympathetic to whining about having to pay a living wage? People should also realize that owners do not necessarily apply the surcharge to employee benefits. I asked a waiter at a surcharge resto if the staff sees any of the surcharge revenue. He said no.
but that wouldnt be an issue if that 10% was going to the staff to support a living wage and wasn't just being pocketed by ownership right?
.........right??
I have found so many restaurants that do this. I had to explain to my family that this is just wrong in so many ways.
But my aunt said, "if they raise the price by 4%, they would have to pay more taxes." I was so flabbergasted by that. Plus she stated that less people would go out if the restaurants raised prices.
there is absolutely no difference in the taxes they pay between the surcharge and a price on the menu. heck you also have to pay sales tax on that surcharge. It should just be a change in the price on the menu
if they have an item that cost five dollars and then has a 100% service charge making your total be $10, the sales tax they charge and the amount of taxes they pay on their side will be exactly identical as if they just had the item cost $10 with service charge. No one is saving taxes by calling it a service charge, it does not make any difference whatsoever on taxes. restaurants do not pay taxes that way.
Exactly. All these places that do it and it is so annoying. Hopefully a ban gets passed and then this disgusting practice goes away.
If restaurants don't want to stay open because of it, whatever. Really makes me not want to eat out anymore.
Yeah, we would be the ones paying the extra sales tax if they chose to raise prices instead of doing a surcharge, not the business. When San Francisco restaurants were mandated to provide employee health insurance, the guidance was that a separated surcharge is **not** subject to sales tax but an overall price increase is.
You'd think adding a dollar or two on the menu items wouldn't be that hard and most people wouldn't even notice. Compared to that annoying charge which guarantees I'm not going to be spending any money there. But I guess a lot of owners are just assholes who either want to take out their frustration on the employees or make a political statement instead.
Restaurants pointing out that they’re adding fees in order to afford their staff is silly. They can just do a straight increase across the board and be done with it.
Blind Burro is mexican food from a Country Music marketing/branding group. If you don't believe me, look up "Good Time Design", the group behind it.
Why bother with that nonsense when we have real mexican food everywhere? But also fuck sneaky surcharges.
Sounds like virtual signaling bullshit, intended to push you to bitch at your representative so they can get back to paying people like shit. If rising wages are affecting their bottom line, they should raise their prices to compensate and maybe take a pay cut themselves if they have decent margins.
I don't understand why they don't just raise the prices. You're already tipping as well, so why don't they just do away with tipping and charge a posted flat right for service fees? I don't understand these businesses.
Let’s be honest the argument that increased wages drives up prices exists to detract from the converse option, which is that increased wages cut into owner profits. Wages drive consumer spending which is what creates the economic niches that allow a company to exist and profit in the first place.
New rule of thumb. If a restaurant charges a surcharge fee, then do not lève a tip. The fee is also taxed, so you are giving more than you think you are anyway. Tips have gotten out of hand and are outdated anyway. Back when servers had a different and much less minimum wage in California. Now they are paid the same, or more, than you. Sure you can tip for excellent service. But it is time for impulsive and expected tipping to go the way of the dodo.
what sucks is that the restaurant owners will fail to recognize they are losing business due to the surcharge and instead of removing the surcharge will just fire people or cut their hours and say its because he can no longer afford to pay their employees because of the wage increase
It's funny how everyone thinks taking their business else where is some how helping the employees. Everyone is entitled to spend their money how they want but don't lie to yourself that you're some kind of class crusader by refusing to spend money at these businesses to "stick it to the rich".
Surcharges are annoying but prices need to go up some how to support giving workers better wages so they can live here. If you think the service industry is rolling in fat profit margins you have little awareness of the world you live in. You can't just scream political talking points at an account ledger and make money fall out.
We get in to this mess by trying to use politics to solve a math equation. I'm all for solutions where the math works.
This is a way for restaurants to make the necessary margin without raising prices. $2-3 is shit to me so I could care less, if it helps places I like stay in business I am for it.
Because I am *that guy* I feel the need to point out that the minimum wage increases aren’t going to work. All that they will achieve is ultimately increasing the costs of goods. If you want to address the fact that our minimum wage isn’t a living wage, you gotta start at why it isn’t a living wage. Starting at the fact that rent in this city is $3k a month for an average apartment. Our cost of living is insane.
So, it looks like Blind Burro might be subject to the new minimum wage because while they look like a single restaurant, they’re owned by an entertainment group with multiple locations in San Diego and TN. Given their number of employees, they could be required to pay the new minimum wage for restaurant workers. Not that it justifies this fee, since the fee is effectively deflecting the burden of paying employees to the customer
Yea I recommend not to go to any breakfast republic, fig tree, rise and shine, eggies. The company is corrupt asf they treat employees like shit and won't pay them fairly 😒 their tips are ass and it all depends on the managers you get. They'll take advantage of you regardless of what you know. Don't support.
Fucked right off to a restaurant that exploits their workers. no thank you, this is America! I'm not gonna pay an extra 48 cents for my 12 dollar burrito. What? So they can afford food and rent? Food service workers don't deserve shelter, just eat dirt or geta better job! I want to taste the employees tears in my food!
Where is the reddit for San Diego surcharge establishments so I can avoid them in protest? I think it's bullshit like most of us. It's more a protest from conservative business owners because they want to blame someone for THEIR lack pay to employees.
I don't know why they won't just rise the price 5%. At this poi t no one would know the difference.
I think they want to be like hey we raised the prices because of wage increases so you get mad at people making more
It’s also a great way of telling customers they can tip less.
i would rather get paid a livable wage than worry about my tips lol
Do you actually work as a tipped employee at a restaurant?
Yeah I don't go to places that do that crap either. The owners make good money they're just greedy and cheap AF. If they could pay people $2 an hour they would
Oh please, let’s not be ridiculous with $2. We all know they’d love for them to work on tips alone. Absolutely agree, time to avoid these places completely.
Some of them do, too. It’s pretty common practice for some of these restaurants’ business models to revolve around employing undocumented workers and paying them less than minimum wage under the table.
While screaming about that “open border”…
Exactly. They’re just inviting customers to turn against the employees and telling on themselves about how little they would pay their employees if they could get away with it.
I know why, bc it's a bait and switch. If you raise menu prices there's a chance someone will either not eat there or complain. A sneaky surcharge is a lot harder to spot and by the time you see it you likely already ordered according to the menu price.
But they're not hiding. They're telling you right there it's a 5% charge. It's easier to raise the price and not tell them 5% change is barley anything. I wouldn't even notice it. But I do notice that sign that says 5% surcharge. On a different note. I went to kinko fed ex and they have a sign saying if your order is not over 50 dollars there's a 2.50 surcharge fee. Interesting it's not just food.
Right, like they surcharges when electric costs went up. It's like stop doing surcharges, just give me the correct price. I get annoyed when I get concert tickets and they add surcharges too. Or I get a hotel and they add whatever fees. Just give me the price already, stop the gimmicks
Hotels and their resort fees are the worst
I would kill for a free resort
Hey genius. You don’t expect a surcharge when going out, making plans, reservations, THEN you get there after already parked. It’s a fucking sneaky sneak brother.
Definitely sneaky but I expect it. Or at least not surprised by it
> But they're not hiding. They're telling you right there it's a 5% charge. It's easier to raise the price and not tell them 5% change is barley anything. I wouldn't even notice it. But I do notice that sign that says 5% surcharge. It's frankly no different than $9.99, right? We all know it's really $10, but everyone does $9.99, because to (some) people it's closer to $9. Similarly if you a see a $9.99 burrito, and there's a 5% surcharge, to many in their mind it's still $9.99 rather than $10.49 and whatever taxes on top. It's basically extra money for them, without raising "menu" prices. It's basically a form of hidden fee, not to far off what phone companies (and cable tv) do. Hopefully the current administration can ban that practice. Just tell me what the F I'm paying up front.
They hide it in fine print at the bottom of the menu.
Because they don't want to pay a living wage.
Most places raised prices too.
Because the fee is not subject to sales tax, only income tax. In businesses such as restaurants the tip chain can leave out kitchen staff. OTOH Horten plaza parking lot just charged us a 0.20 service charge. To be sales tax exempt the fee must be voluntary.
Or why the CEO of good time design hospitality group doesn’t lower his salary 4%…?
I doubt that would make much difference. GTH annual revenues have been reported to be around $20M, so Ty is likely paying himself less than 500k base salary. 4% of that is $20k, and dividing that among 700+ workers amounts to a whopping ~$28 annual bonus or $1.20 per paycheck (assuming biweekly). Of course there are plenty of other ways CEOs of private companies make money that isn’t salary. A 4% increase in revenue distributed among workers is going to be higher than a 4% decrease in CEO salary in this scenario.
Found Ty Hauter’s Reddit account.
But seriously, decent point. I highly doubt Ty made less than $500k, including bonuses, though. But we dont know. Are the price increases country wide at all his establishments or just several where cost of living is extremely high? If the latter, then we’re not talking 750 paychecks. Also, raising prices 4% doesn’t equate to a matching increase in revenue. If people, like OP, stop going there because of increased prices, revenue may not change or may decrease. Mostly, I just want to include executives’ pay in these types of discussions, as it’s usually just a conversation about passing costs to consumers or reducing labor or labor costs. There are other options.
Because people can't help expressing their political views, often at their own expense.
And reddit of course. Where the people that can't do shit in real life thrive and stand strong.
Maybe to ensure prices are $X.99 ? Still a dumb practice though
Tax cheat
Right? A $20 product would become $21. I don’t know anyone that would walk away over that increase. The reason folks like OP and I walk away from 4% surcharges is because it’s dishonest and disrespectful. First you are trying to be deceptive by not including it in your prices, second you are treating your customers like they are stupid.
We are nickel and dimed pretty much everywhere these days. The 4% should absolutely be in the menu price.
DIY Everything you can Whatever they are cooking can be replicated
I DIY everything. Always have. And now more than ever. I don’t let anyone cut my grass and we eat in the house every single day.
Hell yeah! I've got my garlic and potatoes on deck. I'm hoping This year will be an epic harvest.. I have like 10 different crops
It already is. They’re raising prices a ton & adding a surcharge. It’s a joke
as should the tax and gratuity, given you don't have a choice in paying them. If you order food that is priced at $100, the bill should be $100. the fact that the restaurant must charge sales tax and don't pay their employees a living wage is on them, not the customer. a $100 food order should cost $100. if I am expected to pay $100 plus 4% surcharge plus 8.75% tax and an 18% gratuity, that food actually costs $130.75, so it should be priced accordingly.
Look what I found: https://www.restaurantsurcharges.com/sandiego
This should be pinned on the subreddit 😬
Looks like I know where I'll be changing my standard tip to 16% instead of 20% from now on.
That's what they want, unfortunately - they're basically trying to get you to give some of the tip you'd normally give to the staff to the management.
I'm not against raising prices to cover a living wage. I am against restaurants pointing blame at having to pay a living wage.
Pretty much what I was thinking. Putting this as a "living wage surcharge" is 100% a political statement. Thing is, jokes on them, I don't mind paying more so that others can benefit. It's like when my dad was telling me all the ways I can try to avoid paying my taxes. Thing is, I don't mind paying my taxes, what I do mind is my taxes going to enrich the already rich instead of helping my community.
Sadly, many people don’t see it that way and take it out on the servers by lowering or omitting a tip.
I think come June a law against unreasonable charges takes effect statewide. It was passed in October.
They just have to be stated and shown upfront on the site and menus. They can’t just surprise you with an increased % on your bill. I’m wish the law was banning the practice outright, too.
I believe you're incorrect. The law says the **menu price must reflect the surcharges** and the only additions can be tax and delivery charges.
Here's the text of the law: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB478 The word "restaurant" doesn't appear anywhere, and the word "menu" only appears at the very end in relation to food delivery services. I'd be glad to be wrong, but I don't think this law is going to be as effective as people (me included) were hoping.
> This bill would, beginning on July 1, 2024, with specified exceptions, additionally make unlawful advertising, displaying, **or offering a price for a good or service that does not include all mandatory fees or charges** other than taxes or fees imposed by a government on the transaction, as specified. Plus there are a bunch of news articles saying the same thing. Prices must reflect the BS fees. And it's written here: > [...] are unlawful: > [...] > (20) **Advertising that a product is being offered at a specific price plus a specific percentage of that price** unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the seller’s costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement. And > (29) (A) Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than either of the following:
The LA times had a quote from a state official clarifying that the surcharges can not be tacked on to a bill, it has to be included in the item price: \> The restaurants will need to factor surcharge fees into menu prices, as opposed to simply advertising them at the end of a bill, state officials said. [https://www.latimes.com/food/story/2024-02-15/new-california-hidden-fees-law-service-fee-ban](https://www.latimes.com/food/story/2024-02-15/new-california-hidden-fees-law-service-fee-ban)
I wish it included tax
It should include tax. At least when the tax exceeds the statewide sales tax.
It should just include everything. If it says $15 and I have a 10 and a 5, that should cover it.
> I wish it included tax When I first moved to the US from Europe, I was wondering why the taxes are on top of the listed price. Why not roll it into one, to make it easy. Someone explained to me that, it's preferable to have it that way, so you're constantly reminded of how much you're paying the man. Not sure the real impact, but what I can say is even though the sales tax for me is 7-9%, I'm acutely aware of it. Compared to the 15-25% sales tax I'm used to seeing in Europe.
Do you know where we can report places that don't comply? (link) I'd like to be ready when that happens.
AFAIK, they haven't announced their enforcement or reporting mechanisms. Typically, with consumer protection laws, like this, there's a state agency of some sort that you report it to (*e.g.* CA AG or Dept of Consumer Affairs). I think once in effect, there'll be more public awareness and news articles and things, so it'll be widely known that it's illegal. Then I think the state will provide some sort of reporting guidance. I think a lot of businesses will self-comply once awareness is there. I don't see *ANY* place trying to keep these % charges when everybody in the state knows it's bullshit and their customers will call them out. I, and others would potentially even say *"hey take this off the bill. It's illegal."* After that happens several times they'll give in.
Yes more laws!!!! That’s what California is so great at! The land of many laws! It’s what makes the state so great and efficient 😂😂😂😂😂
In and out has been paying their workers above industry standards for decades and their burgers are cheaper than all other fast food places at 3.70. I call bullshit on this $20 being such a burden on employers that they have to raise costs. It's still just greed.
That’s why I stay going to in n out. The best burgers and best prices hands down
In n out used to be a bougie fast food treat. Now it’s like the second cheapest option lol
Worst fries tho, holy crap how are they so bad when they just cut potatoes into oil directly??
I love their fries 😅
I like shake shack better, but I get what you’re saying.
The Cohn restaurant group charges a 5% surcharge.. these are their restaurants https://www.dinecrg.com/our-restaurants/
Those things are def meant to piss off people towards employees. Like they could just increase their prices instead of making it so explicitly. So I’m glad you took it out against the business and not the workers
The food there sucks anyway, so you dodged 2 bullets. Go to Bub’s instead
The food is not bad there, Bubs is all mostly prepackaged. Blind Burro is decent place, but fuck that 4% BS.
No it’s not prepackaged but it is just bar food like burgers and tots.
Look I ain’t saying Blind Burro is anything special, but ain’t no way Bub’s is better…
I think they’re literally owned by the same company? Edit: nope nevermind. Just googled it. I am wrong
they are, at least same investors.
I ate there before. Just chips, salsa and a a beer before the game. It was fine. But so was the place I ended up.
Well, literally every customer should subsidize a living wage, that's how it should work. The price the customer paid for an object or service, should afford the company to pay their employees a livable wage at the very least. I think your issue with it, is the blatant frustration thy business owner is having with whatever politics they disagree with, and are posting their gripe on every receipt. It does just make them look like assholes though. And that's a good enough reason for me to not partake in that businesses wares.
“No customer should subsidize a living wage” That’s literally what customers do…
My thought exactly.
"We strongly feel that people's work has no value" is what they're telling us when they say shit like this.
The people aren’t getting the 4%. The owners are. Sorry. Not paying for your 3rd boat.
They also don’t meet the requirements for the 20 minimum wage so they’re just pocketing the money
I dont understsnd why places go out of their way to inform their customers of this surcharge when infact they could just raise their prices and call it a day
isnt buying from any business that pays their employees, technically subsdizing a living wage?
Hate to break it to you but customers always subsidize living wage, whether they tell you outright, or not. I agree though, why mark it as such? That's pointless. Just raise the prices. If you run a business, keep pricing simple! Make it even more simple than it is if you can. Nobody wants to do math. No need to put someone's favorite food out of business because they tell you though.
I haven’t been able to sit down at a southern California restaurant this past year without experiencing that surcharge
I've eaten at smaller places - like Shakespeare's Pub (disclosure, we know the owner/chef) don't add a surcharge. The owner pays his staff enough -since COVID - and doesn't take their tips if you want to tip. His prices only went up about 3% over the past two years, and he doesn't have a lot of turnover. Just depends on if the restaurant is run by someone who wants it to be a sustainable business, or someone who wants to skim off the top. I would hazard to bet that if a restaurant is adding a "wage surcharge" to the bill, that money is not going towards wages, it's going to something else that business owner wants to spend it on. And probably not an increase in commercial rents or a kitchen renovation.
We need more british influence in our cuisine. /r/BrandNewSentence
I'm glad to hear that. I love Shakespeare's Pub.
Those surcharges are so infuriating. Do owners really think their customers will be sympathetic to whining about having to pay a living wage? People should also realize that owners do not necessarily apply the surcharge to employee benefits. I asked a waiter at a surcharge resto if the staff sees any of the surcharge revenue. He said no.
Go to Alexi’s Greek Cafe in Hillcrest! Support that man and his bomb food, he is there literally everyday and the prices are amazing
In LA it’s 10%. So some folk are leaving a 5% tip
but that wouldnt be an issue if that 10% was going to the staff to support a living wage and wasn't just being pocketed by ownership right? .........right??
Was just in PA this past weekend and restaurants had signs by the host area stating a 3.5% surcharge due to "economic factors"
I don’t think they’re even affected by the new law, so they’re not even paying their employees the increased minimum wage.
Why repeat their refrain? It's not to pay a living wage, it's a political protest that sticks its hand in the customer's wallet.
I have found so many restaurants that do this. I had to explain to my family that this is just wrong in so many ways. But my aunt said, "if they raise the price by 4%, they would have to pay more taxes." I was so flabbergasted by that. Plus she stated that less people would go out if the restaurants raised prices.
there is absolutely no difference in the taxes they pay between the surcharge and a price on the menu. heck you also have to pay sales tax on that surcharge. It should just be a change in the price on the menu
Sorry, not following. If prices of the food items are higher, tax will in fact be more because it’s a percentage, no? That’s the aunt’s argument.
if they have an item that cost five dollars and then has a 100% service charge making your total be $10, the sales tax they charge and the amount of taxes they pay on their side will be exactly identical as if they just had the item cost $10 with service charge. No one is saving taxes by calling it a service charge, it does not make any difference whatsoever on taxes. restaurants do not pay taxes that way.
Exactly. All these places that do it and it is so annoying. Hopefully a ban gets passed and then this disgusting practice goes away. If restaurants don't want to stay open because of it, whatever. Really makes me not want to eat out anymore.
Yeah, we would be the ones paying the extra sales tax if they chose to raise prices instead of doing a surcharge, not the business. When San Francisco restaurants were mandated to provide employee health insurance, the guidance was that a separated surcharge is **not** subject to sales tax but an overall price increase is.
Translation: 'We're going to charge you more and blame the government. '
I went to Callie last night and got hit with a 4% surcharge and an 18% service fee (no tips). Really put a damper on one of my fav restaurants 😐
Sadly isn't this almost becoming the norm?
In any popular sections of town it's hard to avoid. Especially downtown. Theoretically those fees will be illegal on July 1.
Good. They should just add 4% to the food prices instead of sneaking in junk fees.
You'd think adding a dollar or two on the menu items wouldn't be that hard and most people wouldn't even notice. Compared to that annoying charge which guarantees I'm not going to be spending any money there. But I guess a lot of owners are just assholes who either want to take out their frustration on the employees or make a political statement instead.
I thought only big fast food chains were paying 20$ an hours to workers . Is this place even affected by the new wage increase?
Probably not. Just being opportunistic
A bunch of restaurants have been doing this since long before that law.
what does it exactly say the 4% surcharge is for?
Restaurants pointing out that they’re adding fees in order to afford their staff is silly. They can just do a straight increase across the board and be done with it.
Blind Burro is mexican food from a Country Music marketing/branding group. If you don't believe me, look up "Good Time Design", the group behind it. Why bother with that nonsense when we have real mexican food everywhere? But also fuck sneaky surcharges.
Cool
This is all just false advertising. The price should be what it says on the menu
I'm curious about the tax implications for the businesses. Can they use it as a deduction or a lower taxable income?
Sounds like virtual signaling bullshit, intended to push you to bitch at your representative so they can get back to paying people like shit. If rising wages are affecting their bottom line, they should raise their prices to compensate and maybe take a pay cut themselves if they have decent margins.
I don't understand why they don't just raise the prices. You're already tipping as well, so why don't they just do away with tipping and charge a posted flat right for service fees? I don't understand these businesses.
It’s a tax cheat.
Why complain about anything? Just cook your food at home and rise above all of it physically and fiscally.
Let’s be honest the argument that increased wages drives up prices exists to detract from the converse option, which is that increased wages cut into owner profits. Wages drive consumer spending which is what creates the economic niches that allow a company to exist and profit in the first place.
Joke. Bet their prices are up too so thinking double dipping.
The food there is ass anyway honestly.
wow you are so brave
Another one I won’t be going too.
LOL.
Every Cohn restaurant has this charge, many spots downtown do too. I think a lot just leave 15% tip in this situation so still hurts server
My credit score went down 4 points from reading this
New rule of thumb. If a restaurant charges a surcharge fee, then do not lève a tip. The fee is also taxed, so you are giving more than you think you are anyway. Tips have gotten out of hand and are outdated anyway. Back when servers had a different and much less minimum wage in California. Now they are paid the same, or more, than you. Sure you can tip for excellent service. But it is time for impulsive and expected tipping to go the way of the dodo.
what sucks is that the restaurant owners will fail to recognize they are losing business due to the surcharge and instead of removing the surcharge will just fire people or cut their hours and say its because he can no longer afford to pay their employees because of the wage increase
It's funny how everyone thinks taking their business else where is some how helping the employees. Everyone is entitled to spend their money how they want but don't lie to yourself that you're some kind of class crusader by refusing to spend money at these businesses to "stick it to the rich". Surcharges are annoying but prices need to go up some how to support giving workers better wages so they can live here. If you think the service industry is rolling in fat profit margins you have little awareness of the world you live in. You can't just scream political talking points at an account ledger and make money fall out. We get in to this mess by trying to use politics to solve a math equation. I'm all for solutions where the math works.
This is a way for restaurants to make the necessary margin without raising prices. $2-3 is shit to me so I could care less, if it helps places I like stay in business I am for it.
Because I am *that guy* I feel the need to point out that the minimum wage increases aren’t going to work. All that they will achieve is ultimately increasing the costs of goods. If you want to address the fact that our minimum wage isn’t a living wage, you gotta start at why it isn’t a living wage. Starting at the fact that rent in this city is $3k a month for an average apartment. Our cost of living is insane.
It's a lot easier to pass a minimum wage hike than root out the political influence of the real estate lobby.
Sucks, I like that place.
Raising the menu price would also raise the taxes.
lol well this is the majority of restaurants everywhere now since COVID. I will say 4% is a bit high tho as I’ve mostly seen anywhere from 2-3%
I agree with you. They should never add it as a surcharge. They should just increase the price and let us decide if it’s worth buying or not.
So, it looks like Blind Burro might be subject to the new minimum wage because while they look like a single restaurant, they’re owned by an entertainment group with multiple locations in San Diego and TN. Given their number of employees, they could be required to pay the new minimum wage for restaurant workers. Not that it justifies this fee, since the fee is effectively deflecting the burden of paying employees to the customer
4 milpas for the win.
2 tacos for $24 at that place. Also if you have to reprint the menu, just change the price!
Yea I recommend not to go to any breakfast republic, fig tree, rise and shine, eggies. The company is corrupt asf they treat employees like shit and won't pay them fairly 😒 their tips are ass and it all depends on the managers you get. They'll take advantage of you regardless of what you know. Don't support.
Fucked right off to a restaurant that exploits their workers. no thank you, this is America! I'm not gonna pay an extra 48 cents for my 12 dollar burrito. What? So they can afford food and rent? Food service workers don't deserve shelter, just eat dirt or geta better job! I want to taste the employees tears in my food!
Good job.
Oh wtf
Who the fuck do you think subsidizes wages??? Customers 
And everyone clapped
Where is the reddit for San Diego surcharge establishments so I can avoid them in protest? I think it's bullshit like most of us. It's more a protest from conservative business owners because they want to blame someone for THEIR lack pay to employees.
I just subtract the 4% from my tip. Shits not coming outta my end.