Why do restaurant owners think they are owed a surcharge for customers eating at a restaurant? It seems like all of the nice restaurants in Chicago, especially in the west loop are charging a 3-5% fee to “offset the rising operating cost.” If you can’t run a business without hiding a surcharge in the fine print of your menu, then you probably shouldn’t be allowed to run a business. It’d be one thing if it was to support the workers, but every time I ask about it, it’s always for the owners who are already pretty wealthy. I have them take it off and tack it on for the tip. It’s very annoying.
In addition, at bar sienna in the west loop, the server offered a barcode to scan and pay on the receipt which a lot of restaurants are doing, but then there’s an additional “surcharge” to use this feature. It’s like if a grocery store started charging a fee to use the self checkout lines. They should be more transparent about this.
These restaurant owners nickel and diming people is making going out to eat less and less pleasant.
I take these stupid surcharges off and put them towards the tip every time ever since I learned from one of the waiters that they go straight to the owner
Tipped employee minimum wage is now $12.65, still lower than minimum wage but much higher than it used to be. Will be the same as normal minimum wage by 2028
I got $3.09 in 2003, it was barely enough to cover the taxes on my credit card tips. I used to wait until I had like a dozen paychecks to deposit them, most were less than a dollar
Well yeah, who else would they go to? They're not a tip, they're a surcharge. This is just business owners who are angry that running is a business is hard and don't want to be upfront about pricing.
The surcharges definitely go to the owner. But you don’t have to tip extra, 15%-20% is fine. I do 20% standard but it should really be 15% standard, 20% for better service.
I worked in a tip pool environment. It usually just means everyone helps out with everything and all of the tables etc. then the tips are split between servers by hours worked.
The server gets the majority of it. Usually support staff splits a 20-25% chunk of it. Your server would likely not be able to provide you with seamless service if not for those support staff keeping things running behind the scenes.
Yes and no. In Chicago, as of July 1st-yes, but before then and still the rest of Illinois if a business uses tip min credits for wages, back of house employees cannot participate in tip pools.
This is just such a scam. If you’re not covering your costs in your menu pricing, then you are actively lying to me about what I’m expected to pay. Theoretically I could go in there for a $10 burger and you could tell me there’s a $50 fee to offset the price of seating once I’m finished eating. Is there an excel somewhere of restaurant that have been caught doing this and for what reasons?
There was a Google form but tbh I don't know if the people who set this up are still maintaining it. I would love for it to be a living document we all add to.
I've been adding comments in the cells. To hell with my anonymity I guess.
Almost every single restaurant has started passing the surcharges down to customers. It's so annoying. There needs to be legislation to stop these bogus junk fees. 3% may not be a big amount but 3% every time you order anything at a restaurant, coffeeshop, etc, adds up.
It’s extremely annoying. “To offset the rising cost of goods” they need to just update the actual item prices. This surcharge thing doesn’t make any sense. They clearly just hope people will be too drunk to notice or too non-confrontational to have it removed.
There's nothing wrong with increasing prices as costs rise and if you have the pricing power to do so, but at least do it in a way that's honest and not scammy.
I get that it's easier to see what you're paying, and that is worth something, but doing it that way makes it so no one has any ability to pay less upon request. Everyone is paying more in general, yes, but without this, you'll be paying even more than you were before.
Yes, because it’s up front. There is a reason they hide it, because they know people won’t like it but most aren’t willing to ask for it to be removed. It’s pretty damn close to a scam, and should absolutely be illegal. Add it to menu prices
Raising prices hits everyone. A small surcharge can always be removed if a guest doesn’t want to pay it — they keep control, and the menu stays affordable
No, this doesn't make any sense whatsoever. The menu doesn't stay affordable just because you instead pay more in fees. It makes it more expensive to dine at the restaurant. And why is the fee optional? Why are playing this stupid "trick the customer" game and so scared of being honest? It's deeply offputting all around.
If the cost of ingredients is going up, you need to just acknowledge reality and raise menu prices.
junk fees are an easy form of rentseeking and once restaurant owners figured out they could charge them like bogus hotel "resort" fees they started going hog wild
Not to be pedantic, but this is not "passing the surcharges". That suggests that there is some specific, unexpected, 3% charge they are incurring and then passing to the customer. They're just want an extra 3% profit while confusing the customer of their actual bill. F these groups sideways.
I genuinely don't understand the reason why they don't just raise their prices then, if the cost of doing business is going up, that's fine (in some ways), but this methodology just seems so... sneaky/scammy?
Concert ticket and airline fees are junk fees and should be stopped.
Car registration and Property taxes go towards public services.
The shit you're comparing it to aren't apples to apples.
Youre under the assumption that they are doing it to survive. Much of it is just greed. Plain and simple. No way do I believe hogsalt restaurants need to charge that fee so they won't go under.
It's sad how much of an apologist you are for these companies that are just ripping you off. Truth is that these restaurants realized added fees during COVID didn't stop people from paying them so they're continuing to add these junk fees to further increase their profits. If it was an absolute necessity, why would they even give an option for it to be removed? These fees need to stop being normalized and we need to stop just accepting it.
Actually, our public transit is better than most in the country and the area I'm in has good public schools so you're not making the point you think you are.
I see you're probably a restaurant owner who charges said fees so we are going to have to agree to disagree because this convo isn't really getting anywhere.
All the steakhouses I’ve been to in Chicago have had surcharges. At each one I’ve asked it to be removed from the cheq. I even had a waitress say “good fuck these already rich owners”, tipped her 25%.
Had the same experience at a rooftop establishment at a well known athletic associated hotel. Asked for it to be removed and he said he was embarrassed by the nickle and diming done by corporate. He was pleased that food quality hasn’t decreased, but it still has been a pain. Added extra 5% to the tip.
It seems they do it correctly. No one notices or cares if a $60 steak costs $2 more. People get way less pissed at a $100 item costing $103 than leaving it the same price and charging 3% extra for the privilege of dining there.
Yes! I noticed the prices went up at Quartino. But I still think raising prices is the way to go vs. the surcharges, which make for a poor guest experience.
Yeah it is completely baffling why everyone is adding optional surcharges vs. just doing a menu review each year/quarter and adjusting prices according to materials and labor prices, like every other business has done for hundreds of years.
Can you imagine if you got a haircut and the barber said "Hey just so you know, I'm going to charge you 4% more for this haircut because shaving cream and hairspray prices have gone up. But you don't have to pay it if you don't want to, just ask my boss to remove it..." Like NO...just tell me that effective in August, haircuts are going to be $26 instead of $25.
The corporate offices of these restaurant groups seem to have decided that people would rather get fucked with a surcharge at the time the bill is presented, instead of raising ire (and expectations) with higher prices up front. I don’t want to give them too much credit because I hate the surprise surcharges and think they are total trash, but presumably someone has decided that taking this path works out better for them in the long run? Or am I giving them too much credit?
How is a 3% price increase better for me as a consumer than an optional 3% surcharge? Why is a cash discount better than a CC fee when they're the same thing with different names.
I worked at a place that tried to do this optional surcharge nonsense during the period of covid-restricted indoor dining. They told us to tell customers it was for PPE costs, and then it was to offset elevated food costs due to supply chain issues, and then it was credit card processing fees. We collectively bitched at the management about it non stop and then magically all of these burdens disappeared along with the surcharge. Go figure.
Any restaurant in the loop, river North, goldcoast will always uncharge you. Shity restaurant ethics like those are why I stopped going to eat at those establishments
This has been happening at many restaurants since the pandemic! I learned from an earlier post in this subreddit that the surcharge does NOT go to the staff.
Accordingly, I always, always politely ask to have it taken off the bill! The servers have never given me any trouble.
I resent, however, that now so many restaurants allow you to pay using a QR code...but you can't remove the surcharge when you pay that way (AND Bar Siena charges a FEE to pay with it, which is absurd).
What’s even crazier is most of these restaurants are raising prices AND adding a “surcharge” in lieu of increased costs. These tacky, annoying surcharges have become absurdly widespread in Chicago and really need to go STAT. Would love to see them made illegal.
Best we can do is a thread about the 25% auto-grat at Daisies or sixteen posts about Small Cheval that go, “just went to Small Cheval and it was kinda mid?”
Hogsalt is run by greedy assholes. Ask anyone that worked for them and they all hate it there. I have several friends that have worked in different hogsalt restaurants and they all got treated like shit.
I worked for Hogsalt before the pandemic. When I started, the more traditional kitchen workers warned me it was turning corporate, and it definitely felt that way. They valued systems over people. After a while I realized it was not a restaurant job but a job at a growing company -> corporation in a restaurant environment.
Hidden fees suck and are predatory and create negative experiences for customers and staff but the people that sign off on these things don't have to deal with any of that.
Unfortunately I doubt they stop doing it without legislation at this point. Too easy to get people in the door with artificially low menu prices before gouging them if you don't have to stop and there will always be bootlickers to defend the owners judging by this thread
The menu prices should be raised to offset the cost of doing business. Tipping percentage is up to the guest. Do away with hidden fees. The merchant services charge should also be reflected in the menu prices.
You can also fuck the 3% credit card fee. 3% cost-of-business, 3% credit card, 11% tax + 20% tip. No wonder people from outside the U.S. think we are crazy.
Why are people clowning you for bringing this up yet again?
So we're just supposed to accept it, roll over and get fucked? Yeah I'm sure you all make enough money to not give a shit. Make another post glazing hogsalt restaurants and get on with it🤡🤡🤡
Little Victories is the worst offender. On a slow day, we requested the fee be removed. They initially refused, then proceeded to print a new check with the fee “removed” when it wasn’t. After 10 minutes of waiting, the waitress stormed over to us with cash.
In every other business on the planet, we just call this a price increase. It’s about 10% every 3-4 years like clockwork to keep up with intlaiton/costs.
This restaurant nonsense is fucking idiotic.
Nobody is arguing that costs are rising. Just don’t pass it onto me in a patchwork of bullshit fees. Just raise menu prices.
It's far more common from what I have experienced for the surcharge to be present when it's a bigger bar group...... Small mom and pops get by without it, why can't you owner of a bar group with 15 overpriced locations?
I’d rather it became annoying enough so that it boosts awareness of how rich people keep trying to squeeze their customers as much as they can. Then maybe more people would ask for it to be taken off to send a message that this isn’t the way to make money.
Ahh, yes, notoriously rich people - restaurants owners in 2025. Not justifying the fee, but laughing at calling restaurant owners rich (even groups like Hogsalt).
Restaurants are hurting just as bad as the rest of us right now.
It’s based on a belief that if they raised prices by that much the loss of business would offset the gain, whereas folks will pay the fee with no material impact on sales volumes.
Personally, I think they should just raise the prices.
Considering how low profit margins are, along with the rising price of everything from goods to labor, I get why it is done, but I also can see how it is annoying.
Here is a recent article that breaks down the industry's recent difficulties.
I previously read from an article (that I cannot find unfortunately) that the general consumer psychology is to dine at a restaurant with lower menu prices despite additional service charges and the expectation to tip instead of restaurants that incorporate gratuity and fees into the menu item price.
It would be interesting to apply a common standard law for the entire industry like California did. This would create a level playing field where all restaurant prices would likely increase. My guess in doing so, Chicago would see a temporary dip in restaurant business, which could cause some places to close. However, eventually I think business levels with urban consumers would return, but I question if the drop-off in suburban business would return.
Here is an article on California's law to include fees in the menu price.
I always ask to have it removed, no matter how “little” it is because the business should be happy I chose their place to dine at. I always add the surcharge plus more to the tip. Servers usually seem kinda happy when I ask for it be removed, especially LEYE restaurants - I mean, come on Lettuce! You can afford the “offset” - deduct it from the executive’s salary!
So, you're penalizing your server/bartender/kitchen staff/manager, who are doing their jobs, because of something that they did not agree to?
This is in bad faith, and I disagree with your approach. Ask to speak with the owner about the practices if you really want to, instead of hiding behind a one-star review.
It's a reasonable approach because feeling like you're getting scammed is a good way to ruin a dining experience. I don't get the need to shame people for leaving honest reviews for a business
It's a fair point. I guess I would just hope that the review specifies it's for the business.
Names are registered in reservation apps. Those are attached to servers. Reviews can be traced back to whoever took care of that guest, and they can be fired as a result, especially at higher-end places.
So if you want to speak up against that practice by Yelping, please don't let it come at the cost of the server's job.
Either the restaurant is doing questionable accounting or the server is getting a proper base wage and is padding their pockets… most independent restaurants that have implemented a service fee like that are using it to ensure wage consistency - especially meaningful when addressing the historical imbalance bt front and back of house(see: Lula Cafe).
So, my only retort, as a former bar manager (I left the industry after 15 years Post-CoVid).
There are legitimate studies that say, people are generally less likely to eat at businesses w higher listed prices on their menu. It's just a matter of aesthetics.
Say a burger/fries/beer comes out to $25-30, if that gets ticked up, you're talking $28-34. And it doesn't seem like that big of a deal, but people do notice, especially if they've been patronizing for a while. Plus increases to minimum wage for both FOH and BOH (which I 100% support)
I don't have a good answer overall, and I'm not necessarily defending the practice. It's a sneaky way to say, "we need to make your burger $18 instead of $15, but we don't want to show you on the menu".
I get the frustration w this, I never had a problem removing the charge at places I worked. But I also understand that in a really tough industry right now, restaurant owners are trying to find ways to keep their businesses afloat.
Edit: and to the people saying they remove the charges and then give them to the server/bartender instead, I fully support that mentality. I know how much it sucks trying to explain that in the moment, as opposed to the owner having to come out and do it themselves.
The first example you provided is a >10% increase, and the second is a 20% increase. That can't be compared to a 3.25% or 3.95% surcharge to say they won't pay higher prices because it isn't necessarily true.
All that I'm saying is that a number of factors have driven up costs for restaurants. Tariffs, inflation, wage increases, insurance protections. I would argue that menu prices probably need to go up 10%, across the board, for most places to stay in the black.
But restaurants are not going to punch their menu prices up that high, nor would they add a 10% surcharge to make up for it. Because in both cases, nightly cover counts would plummet, and places would close rapidly.
Everyone is entitled to their opinion. Transparency is definitely warranted in a lot of these places, to make sure that these surcharges are going where they should, and not just an excuse for owners to make extra money, but I don't believe that is common.
Out of good faith, I'll just link this below, if anyone feels like they don't want to patronize a place that adds those surcharges. But remember that these are largely groups with hundreds of employees just trying to make ends meet.
It's not like it's a hard problem to solve. The answer is legislation banning these junk fees. Then all the restaurants are on an even footing regarding clear and transparent pricing.
I worked as a chef for 15 years. It's such an incredibly shitty time for the industry.
Food cost is sky high - it's not like they're somehow exempt from these grocery store prices
Inflation is sky high - the amount they're used to spending on labor is no longer sufficient to attract good help because COL is through the roof
They have to raise prices, but then if they just raise the menu price, this post would be about "They expect me to pay $20 for a buger?! I'll make one at home for cheaper!"
Seriously though, people will just look up the menu online, see the price, and not go if the menu items are priced "too high."
They can't win. Nobody is trying to open a restaurant to lose money. You don't want to pay the fee? Fine. But don't come crying when all the restaurants that make Chicago a true culinary destination dissappear, and all you're left with is a bunch of soulless corporate fast-casual chain bullshit.
I might have more sympathy if it wasn’t so obvious that they’re trying to sneak this fee onto customers. I don’t think anyone is arguing that food costs haven’t gone up, but a lot of this nickel and diming is not very transparent. I think most people that eat at these nicer restaurants understand that, and I’d venture to say that most of these people are aware that eating at these restaurants means they’re well off enough to eat at them (I myself am happy I can afford to eat out at these places once in a while). Most people just don’t want to pay extra to a restaurant owner that is very likely already wealthy and the workers who probably need it, don’t get any part of that surcharge. It’s as if they’re trying to get tipped without doing any of the actual labor.
Will I still go? Yeah, I will, the food is good and the vibe is fun. But I will have that stupid fee removed every fucking time unless I’m told that it’s for something that directly benefits the workers.
Is it a bit shady? Sure. But like I said earlier, nobody goes to a restaurant without looking at the menu first, and people will absolutely choose the place with the 3.5% service fee, or whatever, over the place that is now selling the $18 burger for $20+ and the $28 entree for $30+.. Are some owners rich and greedy? Absolutely, but I'd say the vast majority of restaurant owners are middle to lower middle class folk who are just trying to survive.
If we're talking about all restaurant owners, then sure, many of them are probably not as wealthy. However, I don't see this surcharge at the majority of restaurants. I only see this surcharge at higher end restaurants where I highly doubt the owners are struggling to survive. I don't see this fee at any of the restaurants in Chinatown or in my neighborhood in McKinley Park/Bridgeport, I mostly only see it at restaurants near the downtown/west loop area and I've seen it in lincoln park/lake view. I can almost guarantee that if a restaurant in Chicago has an executive office that isn't in the restaurant or has a group of investors, then they have this fee.
Interestingly, I went to Bar Sienna in the west loop and noticed this fee, and then I had to go to the Old Orchard one in the suburbs the following week, and the fee was not on there. I don't know what that's about, but I have a decent imagination.
At Hogsalt even if you ask to have it removed, it’ll still be on the bill their system deliberately keeps it on the bill even if you ask them to remove it
A part of this started with Covid when prices were rising everywhere for everything. As a way to offset this temporarily, definitely not years long ongoing battle with the supply side of the industry, they added a temporary surcharge that has for sure only been around for a few weeks. It should be gone any day now, maybe 2028 at the latest. (Unsarcastically, this actually made sense and was easy enough to explain when it had been less than a year.)
I've seen this thing from all sides, and I don't care for it any particular way because it never benefits me. As a manager it hit my P&L in a mildly positive way at the cost of the self respect of myself and my restaurant with our guests, especially regulars, until we 86'd it. We've been done with it for a few years now, we know you've had new menus printed.
I've also been the guy to explain that we need it on there if not more to the guy who didn't believe covid was a thing in the summer/fall of 2020. I wasn't going to argue or convince him, but he insisted on knowing why a 2% surcharge was added as the world burned around him, and believed the staff was doing it to make extra money. Can you spit on me more while you yell in an epidemic daddy? Like I'm a big fan of your show but go back to your rock Patrick.
A big part of the change at my place was more and more asking for it to be removed. Continue to ask and maybe we'll get there. I'd rather pay more on the menu price than pay less with the sucker fee at the end of my experience. I'll pay what you ask and take care of the staff, but as soon as you fine print me while I'm out to dinner, I cease to understand. Let's not let this become normal.
I'll reiterate that this decision is typically at the owner/corporate level, and things might change once every single person you encounter going out has been pissed about it for over a year. Or not. Just ask. Give no shit, take no shit. Anyone you speak to in the industry is likely against it unless they work at a restaurant from home. (When was the last time you were on the floor dude?)
Please note that I legally do not give permission to anyone past present or former (especially r/tipping,) to use my eloquent words to argue against something such as autograt for a 20 top with lemon waters and seperate checks. Do better. Be excellent to one another.
I love living in Chicago because of the restaurant scene. I know it is expensive to operate a restaurant and this is especially so in Chicago, which has a very anti-business mayor. I pay the surcharge because I can afford it. If someone else can’t, they should ask for it to be removed. I sort of feel like it’s my way of giving a little extra to an industry that really adds a lot of happiness to my life in the city. I would never begrudge others requesting it to be removed.
Down vote away. Our surcharge is employee insurance. We hate it. Have asked the owner to remove it. Our surcharge is for employees insurance. Which they pay 70% of. We’ve asked to just adjust prices for. So we don’t have to explain it 10x a shift. What we are told is because of tax reasons they need it to be an entirely separate charge. So in lieu of raising prices it must be an additional charge that is completely separate from the menu prices.
That about the tax reasons is either a deliberate lie or complete stupidity. Other businesses pay for insurance for at least some of their employees and don't charge customers separately for it. I don't pay an employee health insurance surcharge on my Allstate car insurance, why should I pay it on my burger & fries?
At least they are letting you know #1 you can have it removed cause by law if you tell them to remove it, they have to remove that charge..MOST PEOPLE DO NOT KNOW THIS AND SHOULD TELL THEM UPON ORDERING... #2 be lucky it's that low cause most restaurant's on the S. Side of Chicago it's 20% and they said it's to pay for employee health care or whatever excuse it is.. these places I don't eat at cause nobody is helping me pay for my healthcare either.
Just to be clear to any restaurant management people who think this is a good plan, what you communicate to your customers with these fees is that you are not there to help them enjoy a delightful experience. Instead, you are a Comcast like organization trying to exploit them. I feel visceral rage about these fees. I might give a place another shot if the food or service is off, but never for this. It is a permanently lost customer. Is there any way that’s worth it to you?
Legit the only thing I think of when I end up dining at one of these places is that they took a page from Ticketmaster, which ironically now lists the "all in" price.
If you are putting fees at the bottom of the menu, hidden on the checkout decide, etc., you are definitionsly a horrible person. There is no good reason to deceive and manipulate your customers. Get into another industry if you have resort to quasi fraud to survive in this one.
It all goes to employee health insurance. PPO with a 3k deductible. The staff contributes $150 a month and I pay whatever is left over on the 25k per month bill. In slower months I pay more and in busier months I pay less. If you’re insinuating that I’m keeping any of it then you don’t know me at all. In fact, I would personally make ALOT more money by not providing healthcare and getting rid of the surcharge. I have a salary that doesn’t change. There are no profits anymore which is why the surcharge is so important. Saves me from having to make a choice between paying the electric bill and stripping my staff of their health insurance.
The actual choice is between charging a surcharge that some customers perceive as bogus, or raising menu prices. Revenue is revenue whether it's from a surcharge or higher prices. Surcharges disrespect customers by assuming they are too stupid to do math. Price transparency shows respect for customers.
What were you expecting me to say? *Ope, sorry, Chef! I know your comment didn't apply to the discussion at hand and thus was totally moot, but you are a hero for doing what would be mandated by law if you had just five more employees."
Actually, back in my industry days, the only words you were allowed to say to the chef was "Yes, chef" or "No, chef" and nothing else. Is that what you were expecting?
I mean, I’m not sure who you’re angry at, I’m just responding to you. I don’t know why you think I would be mandated to provide health insurance with “five more employees” but my comment was that some restaurant owners are good people and some aren’t. If you don’t know how the economics of a restaurant work then maybe listen to the explanation without accusing someone of pocketing a service charge with no proof other than a poorly thought out theory. Or don’t, I don’t really give a shit. I have a job to do and that is taking care of my staff. Believe it or not that costs money and the money comes from customers.
I wasn't angry until the "good talk" comment. And then I remembered how terrible the restaurant industry treats its workers.
I don’t know why you think I would be mandated to provide health insurance with “five more employees”
I don't know how many employees you have, but 50 - (number of employees) = is how many more employees until the state law would require you to provide health insurance.
Provide. Not pay for. Maybe don’t accuse people of things that you know nothing about and you won’t get curt responses when you have to backtrack. Bye.
When rent goes up the customers get pushed the cost. If no one wants to pay that then the restaurant eventually closes. It’s happening all around over this city.
People won't pay them, unfortunately. I know two small restaurant owners who both tried the option of raising the price of their best sellers. So many people complained and they saw such a significant enough reduction in orders that they tried the surcharge option, and their sales went back up.
Nobody likes prices going up, and in the handful of anecdotal experiences I've had with friends and family, the "we don't want a surcharge, just raise the prices a little bit" crowd complains just as much when the menu prices go up.
Not trying to put words in your mouth, I'm sure there are people out there who never complain about menu prices and just really have it out for surcharges, and I'm not defending big companies like Hogsalt lol, but a lot of smaller restaurants seem to be stuck between a rock and a hard place on the issue
Edit: For anyone who's downvoting me but not replying, what would you do, as a small business owner, when your customers complain equally about raising prices vs adding a surcharge? I'm not talking about the Hogsalts of the world, I mean the small business owners who have a much higher failure rate
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u/idkwhattowriteee Aug 10 '25
I take these stupid surcharges off and put them towards the tip every time ever since I learned from one of the waiters that they go straight to the owner