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

[Sugarcubesea]

We are up at our Timeshare in Traverse City, MI this week. I noticed that I kept getting charged this week an extra 3% surcharge on my bills, and when I asked the waitress, she said it prominently displayed on their website and its to help the owner pay for healthcare for his employees and to minimize the cost of inflation. I told her I normally do not go to the website of a restaurant I frequent and why is this not posted in the restaurant, and she tells me its because people will get mad...

A 3% surcharge is being added to all checks to help offset fast-rising expenses, including credit card fees and rewards passed on to the restaurant, rising employee wages & benefits, fuel charges passed on to the business and escalating cost of food and other goods. We hope these increases are temporary. This fee is not a service charge or gratuity.

I just feel like I'm being ask to tipp and surcharged for everthing these days, why should I pay something the owner of the establishment should be paying...

So I go to the website and finally find it.... (I listed the website below)

The table next to me heard this conversation and they started chatting with me about this as they also did not know this was happening and pretty soon the whole restaurant was abuzz with this 3% surcharge.

I'm really mad, because I would have avoided going to this restaurant if I had known this tactic was being used.. Has anyone else seen this happening at the places they go to?

Well this my gripe for the the day

Food Menu

www.apachetroutgrill.com

 

[bizaro86]

If that wasn't written somewhere on the menu or at the entrance to the restaurant I'd leave a 1* review. That's changing the price of goods after they've been ordered.

 

[am1]

Ask not to pay it. Tip less. Do not return. Post 1* reviews and why.

Restaurants and workers are out of control. Want minimum wage raised as well as tip % raised as well as price of food going up which already increases the total tip amount.

There is a reason why lots of restaurants close and trying to charge an extra 3% when presenting the bill is not going help.

Being a server should not be a career and should not be enough to support a family of 4. Should be students, starving artists/actors, retired etc.

 

[RX8]

why is this not posted in the restaurant, and she tells me its because people will get mad...

So the restaurant is intentionally “hiding” this added fee knowing that it will piss off customers. Nice customer service

This is simply a way to raise their prices without transparency. What makes this worse is that the fee is sprung on the customer only after they have finished the meal believing that they have no choice to pay. One thing you could have done is reduced the authorized credit card total on the slip by the 3%. In the end though, a solution would have been to pay the amount, post the 1* review as others have said and never return to the restaurant.

 

[DaveNV]

Wondering if you'd still be charged the fee if you paid in cash? And if so, why not just raise their pricing by 3% and call it even? Sounds like an underhanded cash grab to me. Sort of like airlines that charge you more for the return trip on your roundtrip airfare, or "dynamic pricing" for concert tickets on Ticketmaster.

Dave

 

[The Colorado Kid]

Problem solved by adding likely 15-25 cents to the cost of every menu item.

 

[Roger830]

Wednesday we went to a restaurant in Stowe Vermont.

A couple two tables away were complaining about their bill.
We soon found out why. There was a 10% tax for alcohol.
A $8.50 beer was now $9.35.

I now wonder if the sales tax was also on the beer and alcohol tax.

Two days prior we had a better beer at Village Tavern in Jeffersonville for $6.25.

 

[rickandcindy23]

In the end, this will hurt the servers/ waitstaff because the 3% might end up being part of their tip, especially given the lousy explanation. If you usually tip 20% and then tip 17%, the server will lose in the end, so it's in the best interest of the server for the owner of the establishment to raise prices to cover the rising costs of doing business and giving benefits.

A recent law in CO allows businesses to charge for the use of credit cards. You would be surprised how many people will pay cash or write a check, but taking checks has risk. Our son's fireplace store just south of Denver does take credit cards and does charge a fee, but at least 75% write checks rather than to pay 3%.

We will soon have people here on TUG saying the 3% is okay to charge and to just pay it. We will see.

 

[bizaro86]

Wednesday we went to a restaurant in Stowe Vermont.

A couple two tables away were complaining about their bill.
We soon found out why. There was a 10% tax for alcohol.
A $8.50 beer was now $9.35.

I now wonder if the sales tax was also on the beer and alcohol tax.

Two days prior we had a better beer at Village Tavern in Jeffersonville for $6.25.

If that's a "tax" doesn't that imply it's collected by the town/county/state?

If some government entity is mandating it I don't think it's fair to complain at the server.

If the restaurant is randomly adding a surcharge and calling it a tax that's absurd.

 

[mentalbreak]

I would be interested to know if there was a suggested tip on the receipt that you sign and if it was calculated based on the subtotal before taxes and fees or after.
I always adjust and pay my tip excluding taxes and I would exclude this fee as well.

 

[Passepartout]

I can't see this ending well for waitstaff. People will simply tip on the pre-tax/surcharge amount and waitstaff's income will drop.

 

[Superchief]

We recently encountered a 3% charge for 'staff benefits' at Montauk in Vail. This type of 'nickel and dime' behavior is getting out of control. The prices were already about 25% higher than when we were there 2 yr ago. We will not be going back as long as this policy is in place.

 

[rickandcindy23]

We recently encountered a 3% charge for 'staff benefits' at Montauk in Vail. This type of 'nickel and dime' behavior is getting out of control. The prices were already about 25% higher than when we were there 2 yr ago. We will not be going back as long as this policy is in place.

I agree. Vail is actually a very expensive place to eat anything. Even Village Inn was crazy high for pancakes and eggs.

 

[tombanjo]

the alcohol tax is going to be on every restaurant and bar you go to as it is a tax, not a restaurants owner direct to pocket cash grab.
If you have ever rented a car there are pages of taxes, stadium tax, tax for left hand turn lanes, tax for cars that hold one or more people, etc. They stack them up to soak tourists.

In some states, I think unless it is clearly marked on the menu, it is "optional".

The bottom line is, raise the prices if you can't cover your costs. Then people can upfront under stand the costs of dinning at your establishment.

Inflation has certainly raised prices and wage pressure. So I understand prices may need to raise. But do it right

 

[Ken555]

The link you posted goes to the description you copied, but the next paragraph states:

Our goal is to be transparent about this fee. We disclose our fee in advance of your purchase on each of our printed and online menus, at our entry, cashier stations and on our website. It is also listed separately on all itemized receipts.

Seems they’re not honoring their own stated intention if it’s not on the printed menus, at entry, cashier station, etc.

FWIW, I think it’s lazy and duplicitous of restaurants to not include all fees, other than tip, on the menu. Sadly, I’ve seen this happen many places. The latest near me are a few restaurants that have a 4% tip for kitchen staff on the bill, which is not disclosed in advance anywhere.

The only commonality amongst the restaurants that have these extra charges seems to be that they are mostly independent smaller restaurants, and clear that their owner has no idea how to manage a business.


Sent from my iPad using Tapatalk

 

[Roger830]

If that's a "tax" doesn't that imply it's collected by the town/county/state?

If some government entity is mandating it I don't think it's fair to complain at the server.

If the restaurant is randomly adding a surcharge and calling it a tax that's absurd.

In Jeffersonville there was no separate alcohol tax.
We also ate in Burlington where there was no alcohol tax.

I was under the impression that any alcohol tax is in the price of the product and if not, then it should be noted someplace.
When I buy a drink at a bar, there is no separate tax.

 

[Superchief]

the alcohol tax is going to be on every restaurant and bar you go to as it is a tax, not a restaurants owner direct to pocket cash grab.
If you have ever rented a car there are pages of taxes, stadium tax, tax for left hand turn lanes, tax for cars that hold one or more people, etc. They stack them up to soak tourists.

In some states, I think unless it is clearly marked on the menu, it is "optional".

The bottom line is, raise the prices if you can't cover your costs. Then people can upfront under stand the costs of dinning at your establishment.

Inflation has certainly raised prices and wage pressure. So I understand prices may need to raise. But do it right

Wine markups in most restaurants have also gotten excessive. This caused us to eat more carryout meals. There is an added bonus in Ohio that sales tax is not added to carryout orders, saving us an additional 8%.

 

[linsj]

Lettuce Entertain You restaurants are charging the extra 3%, supposedly to keep from raising prices, according to the bill. The bill also states you can ask your server to remove it. I don't eat at Wildfire often enough to keep track of prices, so I don't know if they've remained stable.

 

[Luanne]

Being a server should not be a career and should not be enough to support a family of 4. Should be students, starving artists/actors, retired etc.

Really? Some wait staff do very well. Some years back in Carmel we were talking to our waiter. He had worked at the same place for years, owned a home in Carmel and was quite happy.

Our favorite server at our favorite restaurant in San Francisco has also been there for years. I imagine he's doing well and is happy also.

Many servers in Santa Fe have been at the same restaurants for years.

So yes, for some people it is a career. How like you to condemn those who choose to do this.

 

[zentraveler]

Being a server should not be a career and should not be enough to support a family of 4. Should be students, starving artists/actors, retired etc.

Says who and why not? Really, an honest question. Quite routine in Europe and in many countries, including this one, as well in some places.

We may be doing something very wrong here in the US, but that does not mean it is not a career, and one that can support a family.

 

[geist1223]

I would be interested to know if there was a suggested tip on the receipt that you sign and if it was calculated based on the subtotal before taxes and fees or after.
I always adjust and pay my tip excluding taxes and I would exclude this fee as well.

Was the 3% calculated before or after the Local/State Taxes were added?

Suggested Tip is calculated on entire Bill. Which Includes all Taxes. That is one of the primary reasons I never tip the recommended Amount on the Bill.

If the 3% surcharge was not prominently displayed in the Restaurant or on the Menu I would refuse to pay it. Or tell the waitress you were reducing your Tip from 20% to 15% to allow for all undisclosed fees.

 

[DrQ]

Being a server should not be a career and should not be enough to support a family of 4. Should be students, starving artists/actors, retired etc.

I remember eating lunch at The Berghoff in downtown Chicago. The majority of the waitstaff were middle aged men (40's and 50's).

In high school, I had just a couple of morning classes my senior year. I worked as a busboy at a restaurant late morning through afternoon. We were next to a toll road and on a road with many businesses which would go there for lunch. The three ladies that worked as wait staff worked their butts off, but they made pretty good money during that shift (based on my tip payout) and they had worked there for years. We would hustle to clean and set up tables to keep turning them over during the lunch rush.

 

[dougp26364]

We ran into this quite a lot eating out in San Francisco. What I had read when researching was business owners were upset by laws requiring them to provide benefits, and they wanted everyone to know the cost of those benefits. We didn’t see it on every tab, but we did see different percentages at different businesses, including a few tourist trap stores selling souvenirs. I also ran into a CVS store that had a tip line when I paid by CC. employers need to pay their employees, provide benefits and charge for their services appropriately rather than tack on extra fees the customer wasn’t planning on paying.

I will personally avoid as many places that charge this additional fee as I can when we eat out. Benefits are a cost of doing business, I expect it to be built in and pricing to appropriate to cover those costs. Personally I feel this is misleading, much like resort fees at hotels for amenities we don’t use.

 

[Tia]

In the end, this will hurt the servers/ waitstaff because the 3% might end up being part of their tip, especially given the lousy explanation. If you usually tip 20% and then tip 17%, the server will lose in the end, so it's in the best interest of the server for the owner of the establishment to raise prices to cover the rising costs of doing business and giving benefits.

A recent law in CO allows businesses to charge for the use of credit cards. You would be surprised how many people will pay cash or write a check, but taking checks has risk. Our son's fireplace store just south of Denver does take credit cards and does charge a fee, but at least 75% write checks rather than to pay 3%.

We will soon have people here on TUG saying the 3% is okay to charge and to 4% for

Didn't realize CO had added a law on using credit cards, but agree it will hurt servers . Our favorite place added a 4% fee not that long ago for credit cards. We changed to cash...................

 

[am1]

Says who and why not? Really, an honest question. Quite routine in Europe and in many countries, including this one, as well in some places.

We may be doing something very wrong here in the US, but that does not mean it is not a career, and one that can support a family.

Sure everyone can provide examples at high end places but at the 1000s of chain restaurants? There will always be outliers.