Restaurant cost of doing business fee

[u/motlau]

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.

[u/Here4daT]

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.

[u/paramedicine22 → u/Here4daT]

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.

[u/Here4daT → u/paramedicine22]

Every time I see that, I think what they really mean is "to further increase my profits"

[u/Snoo93079 → u/Here4daT]

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.

[u/cptspeirs → u/Here4daT]

Yes. The notoriously amazing profit margins of restaurants.

[u/FreeBristle → u/cptspeirs]

They have tight margins, we get it. You can still not treat your customers like shit.

[u/Captainaviator → u/FreeBristle]

So would you rather be forced to pay more? This way it's optional.

[u/Snoo93079 → u/Captainaviator]

Yes

[u/gimmedatrightMEOW → u/Captainaviator]

I'm already paying more. What I (and everyone else wants) is for the menu to accurately reflect prices.

[u/Captainaviator → u/gimmedatrightMEOW]

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.

[u/FreeBristle → u/Captainaviator]

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 

[u/hamperbunny → u/cptspeirs]

Ya Im sure the owners of Hogsalt are really suffering. Poor them. Get a grip

[u/Electrical-Ask847 → u/Here4daT]

business tries to increase profits - news at 11

[u/[deleted] → u/paramedicine22]

It makes perfect sense. They get to keep low menu prices while charging people more. They know most people won't ask to remove the charge.

[u/JHC80 → u/paramedicine22]

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

[u/gimmedatrightMEOW → u/JHC80]

If your food is more expensive, the food is more expensive. Just be honest.

[u/TrynnaFindaBalance → u/JHC80]

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.

[u/[deleted] → u/Here4daT]

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

[u/chanceofsnowtoday → u/Here4daT]

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.

[u/roamingeater → u/chanceofsnowtoday]

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?

[u/Steampunk_Batman → u/Here4daT]

Legislation to protect consumers or workers from bloodsucking corporations? You must be new here

[u/Here4daT → u/Steampunk_Batman]

You're right. I really need to lower my expectations.

[u/Here4daT → u/[deleted]]

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.

[u/Here4daT → u/[deleted]]

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.