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

[Panina]

Inflation has hit everyone hard. Businesses need to just raise their prices instead of adding fees.

 

[dannybaker]

What!!!! My wife has been adding surcharges to me for 31 years. I thought it was the norm.

 

[slip]

I ususally do the math in my head and round up to the nearest buck, or if rounding up takes it close to the nearest $5 interval, then I just round up to that. The tax being included in the suggested amounts doesn't bother me so much because in the end as it probably works out to only an extra $0.50-$1 in the tip. Something I am probably giving anyway in the roundup anyway.

Yep, pretty much what I do.

 

[Sugarcubesea]

Inflation has hit everyone hard. Businesses need to just raise their prices instead of adding fees.

@Panina , I so agree, I would not have been so upset if they had just raised the prices as in that way its transparent, but by putting a fee onto the bill after fact, just leaves a bad feeling for that establishment....

 

[Superchief]

@Panina , I so agree, I would not have been so upset if they had just raised the prices as in that way its transparent, but by putting a fee onto the bill after fact, just leaves a bad feeling for that establishment....

I totally agree. It is similar to corporations downsizing packaging to hide the price increase from consumers. I always switch to another brand when companies do that.

 

[WinniWoman]

It's decades of people telling staff, "If you don't like working long hours for low pay, find another job."

Well, they found better jobs. And now restaurants don't have enough people to stay open all shifts and every day. I'd love to say that this is causing policy changes industry-wide. Hell, no. Restaurant owners are stuck in the 20th century (19th is more fair). They can't wrap their head around the concept of "if you pay peanuts, you get monkeys." So they stick with $2.13/hour. (Half the states still use this -- the other half finally increased hourly wages for tipped employees. But still not a living wage.)

Frankly, I hope more than half of the restaurants in the US go under. They don't deserve to stay in business. And then maybe -- maybe -- younger, more savvy chefs will take over these shuttered businesses and open restaurants which don't rely on indentured servitude. Even better, they can stop pouring frozen industrial garbage directly from a bag into a deep fryer and charging fine-dining prices.

Have you ever owned a restaurant business? I haven’t myself but I know others who have. It is one of the toughest businesses to own and make a profit from what I understand.

 

[1Kflyerguy]

I get annoyed by the "healthcare and benefits" fee, and feel that should just be added into the prices. But it seems to be coming more common. We are in Oahu an one independent restaurant in the Hilton Hawaiian Village added a "Kitchen Service Fee" to our bill. It was $3.50, so assume that fixed and not a percentage. There was footnote on the bill that said was to cover administrative costs and tips for the kitchen staff who don't receive anything from the tip i add to the check.. First time i saw that..

 

[ScoopKona]

Have you ever owned a restaurant business? I haven’t myself but I know others who have. It is one of the toughest businesses to own and make a profit from what I understand.

I retired from that industry. I know the numbers quite well. And yet, when places like the Las Vegas Strip pay their people relatively decently, those restaurants all still do well (a captive audience doesn't hurt). And it improves the working conditions off the Strip because a rising tide lifts all boats. And let's face it, for whatever reason that I don't understand, people FLOCK to that horrible place to wine, dine and behave badly.

The local McDonald's, during the pandemic, put a sign up offering $25/hour to start. They always COULD have done that. They chose not to -- until labor became such a problem they had no choice. It's the same with the mom-and-pop places around here. Wages are all $20+ these days. That's still not enough for this area. But it's a damned sight better than what they were doing before the pandemic. I'm glad all these people quit. I hope they're thriving (or at least content) in some other industry.

Paying people a living wage doesn't increase menu prices all that much. Not enough to justify treating employees like garbage. And yet, every time someone tries, the National Restaurant Association screams like scalded babies. "We'll all go out of business."

GOOD! These [censored] don't deserve to stay in business. Not if they pay indentured servitude "wages." Clear out all the dinosaurs and let a new generation take the helm.

 

[CO skier]

Paying people a living wage doesn't increase menu prices all that much. Not enough to justify treating employees like garbage. And yet, every time someone tries, the National Restaurant Association screams like scalded babies. "We'll all go out of business."

It is not just the National Restaurant Association doing the screaming:

"Why don't they just raise their menu prices?"

Because every restaurant which tries this learns the hard way -- people will go to another restaurant with lower menu prices, and nickle-and-dime fees attached. Every time. No exception.

 

[ScoopKona]

It is not just the National Restaurant Association doing the screaming:

It only works when the entire area does it at the same time -- like how it works in Las Vegas with the culinary union. Las Vegas cooks complain about a great many things. But not their paychecks.

Swing and a miss...

 

[dioxide45]

I always thought kitchen staff were paid a full wage (non tipped wage), so it seems odd that they should receive a cut of the tips that a server makes. I do recall when I worked with wait staff (I wasn't a waiter), and they provided a cut of their tips to bussers and bartenders as these people provided a direct service to the wait staff. But the kitchen staff just received their paid wage.

 

[Patri]

Scoop, how much do you pay your employees? If you have none, how much would you pay if you needed help?

 

[CO skier]

It only works when the entire area does it at the same time -- like how it works in Las Vegas with the culinary union. Las Vegas cooks complain about a great many things. But not their paychecks.

Swing and a miss...

You did (first) scream, "No exception."

 

[rickandcindy23]

I always thought kitchen staff were paid a full wage (non tipped wage), so it seems odd that they should receive a cut of the tips that a server makes. I do recall when I worked with wait staff (I wasn't a waiter), and they provided a cut of their tips to bussers and bartenders as these people provided a direct service to the wait staff. But the kitchen staff just received their paid wage.

I think they are paid a full wage. If the restaurant owner underpays, that's on the restaurant owner.

Servers are paid pretty well in CO. $10.63 per hour + tips. Many restaurants will say on the menu that all tips are shared with the entire staff. HuHot does this.

 

[am1]

Have you ever owned a restaurant business? I haven’t myself but I know others who have. It is one of the toughest businesses to own and make a profit from what I understand.

Especially ones trying to sell innovated high end meals like he suggested needs to happen.

I am able and like to eat different types of food. What food would he like chefs to create?

I am very annoyed that at some places it is impossible to get a hamburger without some kind of pork or special sauce that includes mayo. Or American plastic cheese. Even the Classic Hamburger includes those items at most places. Then throw in Burger Week and everyone try to outdue the next with their best burger.

Sushi is the same way. I just want simple sushi with a few differences is ok to differentiate places. But once against everyone wants to one up the other.

Then when we come to pricing everyplace wants to charge high prices for their innovations.

That is fine at some places or if a place adds a few new creations to the menu. But for someone to think that everyplace needs to innovate and the current chefs should go bankrupt is not the right approach.

Also a question for him how is a restaurant suppose to run other then with people willing to work hard? The industry has busy times and slow times. If one cannot keep up with the work required then they should find new employment. Or get replaced by robots.

As for frozen industrial garbage, I tell my wife it is easy enough "to cook" that at home. Especially with an airfryer making it healthier. But do you really think the world has an alternative to frozen food? In restaurants and at home? I will agree with him about the high pricing on it when ordering it.

 

[ScoopKona]

Scoop, how much do you pay your employees? If you have none, how much would you pay if you needed help?

Why do you want to know? Doesn't seem usual for you.

 

[am1]

I get annoyed by the "healthcare and benefits" fee, and feel that should just be added into the prices. But it seems to be coming more common. We are in Oahu an one independent restaurant in the Hilton Hawaiian Village added a "Kitchen Service Fee" to our bill. It was $3.50, so assume that fixed and not a percentage. There was footnote on the bill that said was to cover administrative costs and tips for the kitchen staff who don't receive anything from the tip i add to the check.. First time i saw that..

I guess they never heard of tip out, tipping out. Or illegal there. I am not against a seat fee per se. Just want to know about it in advance. If it turns people away it costs the owner and workers money.

Had to pay one when last weekend. But it was because they had live music. Andres de Res in Medellin. But its a fee they can charge on the weekend as they will fill up either way.

 

[Superchief]

I always thought kitchen staff were paid a full wage (non tipped wage), so it seems odd that they should receive a cut of the tips that a server makes. I do recall when I worked with wait staff (I wasn't a waiter), and they provided a cut of their tips to bussers and bartenders as these people provided a direct service to the wait staff. But the kitchen staff just received their paid wage.

At Montauk in Vail, the 3% surcharge was supposed to be for benefits for the kitchen staff. I don't think it included the wait staffs. I guess this was intended to keep people from taking it out of the tip.

 

[Luanne]

On the website of our favorite restaurant in San Francisco:

Dear Guests,
While we resisted adding a surcharge for many years, the cost of doing business in San Francisco has skyrocketed while most every competitor now adds a surcharge. At this juncture, we have chosen to go this route instead of raising our menu prices as we feel that this creates less “sticker shock” and presents prices as most other restaurants do.
We hope you understand,
Fino Ristorante - July 17, 2023
*WE WILL BE CLOSED FOR THE NEXT FOUR SUNDAYS, RETURNING TO SUNDAY DINNER SERVICE ON AUGUST 20TH

 

[dioxide45]

Surcharges seem to pray on people that can't do math to determine the real cost of their meal in the end.

 

[Patri]

Why do you want to know? Doesn't seem usual for you.

Well, you are saying what restaurants should pay their staff. I’m just wondering if you are generous/competitive if you have employees.

 

[ScoopKona]

Well, you are saying what restaurants should pay their staff. I’m just wondering if you are generous/competitive if you have employees.

I am. But most of the work I have done here is "by the job," not "by the hour." Nobody ever leaves this place unhappy.

 

[am1]

I am. But most of the work I have done here is "by the job," not "by the hour." Nobody ever leaves this place unhappy.

Then you are getting taken for. Contractors should be a little unhappy but willing to come back when a job is finished. Or you are overpaying and your prices on whatever you are doing will higher.

 

[am1]

Surcharges seem to pray on people that can't do math to determine the real cost of their meal in the end.

Not that at all, at least for me. I would be annoyed if I got a 3% surcharge on a bill that goes to employees but still expected the tip line to suggest 15% %20 %25 or so. Even if not spelled out for tip employees I expect them to tip out to the back house staff as that is the grease that keeps the business going.

I want 0 surcharges and 10% tip already included if anything. I would prefer to tip at my discretion but understand mid-high end places want to add %10 to the bill suggested but already built in. Sometimes costing them more in tip from me but no doubt they earn more that way from a place where tipping is normally the rounded up change or so.

 

[dioxide45]

Inflation has hit everyone hard. Businesses need to just raise their prices instead of adding fees.

Unfortunately we are now in an upward spiral. Prices going up, so businesses have to raise prices. Cost of labor goes up, so they have to raise prices. Prices everywhere else go up. So employees need more money to cover basic expenses. Labor costs go up more, then prices have to go up. Accelerating wages sounds like a good thing for the employees but in the end they are just spending their new wages on the same, but more expensive, stuff.