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COVID-19 surcharges, water donations, and health insurance are some of the new surcharges appearing on customers' bills when they dine out.
What’s a COVID-19 fee? A small charge one restaurant in New York implemented to wipe down its menus. The sad thing is that people are undecided whether it was a joke or an actual expense incurred.
Restaurants are getting creative with their surcharges:
Perch LA, a French-inspired rooftop bistro in Los Angeles, made headlines by making customers pay 4.5% for security costs, per The Hollywood Reporter
Ping Pong, a London dim sum restaurant chain, instituted a 15% brand charge to cover franchise fees, per The Guardian
Alimento, an Italian restaurant in Los Angeles, charges 4% to cover health insurance for full-time team members and a $1.50/person “water donation”
These surcharges are more widespread than you think. One Reddit user created a Los Angeles Surcharges List with 294 restaurant surcharges, many of which are ill-defined and vague, like La Brea’s 3% “HealthyTeam” surcharge.
The increase in surcharges has angered customers, inspired lawsuits, and prompted regulatory action. Last month, D.C. lawmakers voted to cap restaurant service fees at 20%. More lawsuits and regulatory action are expected as we reach a tipping point.
While some restaurants undoubtedly take advantage of customers' naivety, others claim it is necessary for their business to stay afloat due to high delivery service commissions and increasing credit card fees.
After reading this, I don’t know what you’re thinking, but I might have to get better at cooking.
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