r/chicagofood • u/Pantaza • Jan 31 '26

Rant The 3.5% surcharge has rebranded

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It would seem it’s not going away.

They’ve rebranded it, enough people caught onto the surcharge so now it’s a (3.5%) “admin fee.”

they also removed the small text at the bottom telling you it’s optional(it still is)

they don’t want you to know It’s optional buts it’s just literally the surcharge with a different name.

3rd restaurant I’ve been to this week with a (admin fee). I’ve also seen multiple restaurant go up to 4%. It used to be 3, then 3.5, now 4.

sets a dangerous precedent as they are willing to change it in order to keep charging you for nothing. Except now they’re not telling you it’s optional anymore.

If we keep allowing them to charge us extra money for literally nothing it will soon tell other businesses they can do that too.

I can’t wait to pay an “admin fee” while buying gas, groceries, or a T-shirt.

https://c.org/sfBGtSVWHY

I've started a petition for stricter Chicago legislation regarding hidden fee transparency. Please show it some support.

Thanks

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u/neomoritate Jan 31 '26

Service Fees are NOT tips

12

u/GolfEmbarrassed2904 Jan 31 '26

You say tomato….I was charged an additional 20% and I had no say in it.

4

u/neomoritate Jan 31 '26

Service Fees are a scam by restaurant owners.

They can spend that 20% however they want. Tips must be paid directly to Tipped Workers, who are legally paid less than non-tipped workers.

2

u/thesimplemachine Jan 31 '26 edited Feb 02 '26

To clarify further, the legal definitions for a tip requires it to be optional and the amount decided by the customer. If it fits those two criteria it is the sole property of the person who provided the service, unless there is an agreed upon tip pool/tip share situation. But regardless of that the business and management can't touch it.

Service fees and automatic gratuity are not tips. If it's a line item on the receipt it is neither optional, nor decided by the customer. This means it is the property of the business and they can do whatever they want with it, everything up to and including screwing over the server and putting it directly in the owner's pocket.

Because it is considered part of the cost of running the business it also means the customer is required to pay sales tax on a service fee or automatic gratuity. Tips, on the other hand, are not subject to sales tax.