Lawmakers want to crack down on “junk fees,” but restaurants are trying to stay out of the fight.
Surcharges or fees covering everything from credit card processing to gratuities to “inflation” have become more popular on restaurant checks in recent years.
Last year, 15% of restaurant owners added surcharges or fees to checks because of higher costs, according to the National Restaurant Association. In the second quarter, 3.7% of restaurant transactions processed by Square included a service fee, more than double the beginning of 2022, according to a recent report from the company.
Opponents of the practice say those fees and surcharges may surprise customers, hoodwinking them into paying more for their meals at a time when their wallets are already feeling thin. Fed-up diners compiled spreadsheets via Reddit of restaurants in Los Angeles, Chicago and D.C. charging hidden fees. Even the Onion took a swing at the practice, publishing a satirical story in May with the headline “Restaurant Check Includes 3% Surcharge To Provide Owner’s Sugar Baby With Birkin.”
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It’s bait and switch. You display prices to attract customers (think how restaurants display their menus out front or online) and then raid them with add-ons at bill time.
Aka fraud
It’s only fraud when the plebs do it, to business owners it’s “strategy” /s
Sometimes the fees are in small print somewhere on the menu. I suppose that gives the restaurant some legal protection, although I’m still totally on the “menu prices must actually show how much that food costs” team.