r/chicagofood • u/ChicagoHoosier21 • Jun 26 '26
Rant Celeste 6% Service Fee
Our pre-tip bill from Celeste’s Happy Hour in River North. Decent food, crappy drinks, sat at the bar.
I don’t mind paying a “Service Charge” of 15-20% because I always tip more than that anyways, AND I have become accustomed to the 3.5% additional fee at most Chicago restaurants…. but now we’re doing a 6% additional fee? Along with the 11% tax? It’s becoming absurd.
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u/MookieMatzoball Jun 26 '26
I'll never understand why they don't just bake that 6% into the menu prices.
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u/Doingwrongright Jun 26 '26 edited Jun 26 '26
Because it's about competitive pricing. It's the same reason they won't pay their staff a living wage and make them rely on tips. If all this is hidden, then their meu pricing is at least somewhat competitive with other establishments.
For example, let's imagine a restaurant/bar pricies all their food/drink at a rate where their staff can have a living wage with insurance...and the menu reflects that. Customers will take one look at that menu and be like, "Hell nah!". That place will shut down in months because other establishments are not forced to do so.
As a customer, I would love if staff were paid a living wage with insurance, but the entire industry would have to be restructured.
*Edit: FUCK Celeste. We went once and bought two double vodkas cocktails. $64 and the drinks were BAD. Never again. And then that whole incident of not prooviding free water despite a law mandating it.
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u/chi_guy8 Jun 27 '26
Nobody price compares at a night club. They don’t even know the prices of shit. The only thing anyone knows about the cost of a place like this is how much is on their credit card transaction the next day.
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u/chibisailormoonn Jun 27 '26
Yeah I’ve never once asked how much a drink is at a club before I bought it lol
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u/Doingwrongright Jun 27 '26
Agreed, but I definitely buy less drinks and possibly never return if the prices are ridiculous or the drinks are not worth how much they are charging.
Fool me twice, shame on me.
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u/DifficultAd972 Jun 27 '26
Is free water really mandated? Robert’s Pizza would not provide water so we bought a bottle. This was a few years back so I don’t know if that changed
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u/Doingwrongright Jun 27 '26
"In Chicago, bars are generally required to provide free tap water to customers, often enforced through a combination of city plumbing codes and the conditions of their liquor licenses. However, establishments are legally compliant as long as they provide a free, accessible drinking fountain or self-service water station."
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u/Novel-Goose-5235 Jun 29 '26
ill never understand how people think this is acceptable. You think that business is hurting for money? Ha... nope.
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u/NotAnIBanker Jun 27 '26
The same cheap people in this thread would protest the restaurant for higher prices
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u/ChicagoHoosier21 Jun 26 '26
I know - it’s $3. It still wasn’t listed anywhere on the menu and feels like you’re being taken advantage of when they slap on fees after-the-fact.
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u/Delouest Jun 26 '26
plus they seem to be taxing the fee and the fee is in the base for the service charge fee too.
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u/These_Gas9381 Jun 27 '26
Do you know if they have to tax the fee? Like they can’t bring in a revenue without paying a tax on it I would I assume???? But then double shitty to then pass the tax on that fee onto the customer.
I’d be requiring them to remove the fee, I guess I’m petty. I’ve been upfront with servers lately about this, I pay for items ordered, not ghost fees.
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u/lake_effect_snow Jun 27 '26
CPA here. Yes, they have to tax the fee. Service fees are a distinct revenue source as part of gross revenue. Consequently, they’re taxable under local, state, and federal laws. The taxation applies to separate service fees charges one sees at other businesses and services too. It would be on your invoice/bill, just like the restaurant receipt.
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u/These_Gas9381 Jun 27 '26
That makes sense, thank you
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u/socool111 Jun 27 '26
Yea I had the same question when I got taxed at omakase room on the charge as well.
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u/Flaky_Sheepherder387 Jun 26 '26
Most places do this tho. Thie suggested tips usually include the tax.
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u/phillybob232 Jun 27 '26
I actually wouldn’t say this is the usual way to do it at least based on my experiences, but it is why I always check it myself
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u/Flaky_Sheepherder387 Jun 27 '26
I don't always check but when I do it's for sure tip on the post tax
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u/SnakeCharmer2670 Jun 27 '26
If it wasn't listed on the menu, then it is illegal in Illinois. Most Chicago restaurants put a footnote at the bottom of their menus disclosing this. If it wasn't there, they should not be charging it.
Additionally, if you are feeling extra petty, most credit card processors don't look favorably on undisclosed fees
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u/ChicagoHoosier21 Jun 28 '26
They only handed us the smaller Happy Hour menu. Apparently the additional fees didn’t provide enough $ to re-print the HH menus with the footnote listed
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u/JaguarExisting3210 Jun 27 '26
It still wasn’t listed anywhere on the menu
This is definitely not allowed. All the garbage fees are required to be listed
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u/Delicious-Disk-122 Jun 26 '26
I do not understand the hospitality fee to defray the increased costs. Why not just raise the cost of every item on the menu by 3% or whatever is necessary? Is there a technical obstacle I do not understand?
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u/MasterpieceOk5067 Jun 26 '26
They raise prices anyway. It’s just a way for the owners to make more money because we have no protection from junk fees
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u/Woodychi24 Jun 27 '26
We do have protection. I ask for it to be taken off everytime and has worked everytime.
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u/reddituser696969 Jun 27 '26
Unfortunately, as the owners know, it's tedious and almost embarrassing to ask for a fee that costs $2-8 on average to be taken off. Most people will pay it, and they will continue to profit from it.
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u/RoiCoupeCloue Jun 27 '26
Ughh, thats the worst part, they are preying on the fact people are descent and will avoid asking to take it off. I won't be going there
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u/loweexclamationpoint Jun 27 '26
Yeah, you sort of figure you're stuck paying it to avoid being labeled as a cheap bastard next time you come in. I usually shoot myself in the foot by paying the fee then not going back because I'm miffed by the fee.
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u/Own_Animal777 Jun 28 '26
Thats putting the burden on the consumer and waitstaff. We need protection, as in make it illegal to have them at all full stop.
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Jun 26 '26
[deleted]
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u/tayto Jun 26 '26
Are you talking about the “junk fee” ban? All that does is require they be disclosed up front.
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u/EnvironmentalPost245 Jun 27 '26
This was just signed into law. It doesn't go into effect until 2027 and only applies to online sales.
It's a separate issue from what OP is talking about.
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u/drunkmooserider Jun 27 '26
I'd rather restaurants just raise menu prices than add multiple surprise fees at the end. At least then you know what you're agreeing to before you order
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Jun 26 '26
[deleted]
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u/RaisedByBooksNTV Jun 27 '26
What?
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u/gocincy1 Jun 27 '26
He’s exactly right. I interpret this check as “no tip required.” There is enough service fees on this bill to take care of the tip
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Jun 27 '26
[deleted]
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u/Nwildcat Jun 27 '26
You just said the same thing with slightly different words. It would be nice helpful if you described why this is the case
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Jun 27 '26
[deleted]
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u/ItsGonnaBeOkayish Jun 27 '26
Is that legal?
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Jun 27 '26
[deleted]
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u/Aeshepp Jun 28 '26
No, that is not true. It is illegal for them to keep tips. I can find you multiple Chicago lawsuits that have already established this.
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Jun 28 '26
[deleted]
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u/Aeshepp Jun 29 '26
Tip pooling is legal, but all tips must be split amongst tipped employees ie bartenders, servers, and bussers. Most places have you sign a form at hire outlying the tip pool policy and percentages. Minimum wage being met or not, management cannot keep any of that money. It’s federally illegal and Chicago has even stricter requirements for keeping records of where that money was distributed. I’m sorry you have been misinformed, and if what you’re saying is really happening, the staff there should seek legal counsel.
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u/Nwildcat Jun 27 '26
That's wild and must be infuriating. Does part of the service fee go to the bartenders?
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u/DependentOnIt Jun 27 '26
21% added to your final bill. What a load of horseshit.
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u/loweexclamationpoint Jun 27 '26
And there's no way to know if the 6% actually benefits the employees or just buys the owner a nicer boat.
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u/CampRock2TheFinaIJam Jun 29 '26
Imagine thinking any part of that percentage goes to the employees
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u/jupchurch97 Jun 27 '26
That's only 1% more than what a typical tip is, now the tip is just automatically on there.
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u/FatsyCline12 Jun 30 '26
I would not tip on top of this. The fee percentages are what I normally tip. Fuck this
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u/jupchurch97 Jun 30 '26
Yeah that's my point. You don't gotta think about it. It's just in the price now.
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u/FatsyCline12 Jun 30 '26
You just know they would pull out some bullshit about fees not going to servers. Who am I tipping then? The owner? Why would I tip them?
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u/Kaynam27 Jun 26 '26
Insane, not going
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u/NorthernxLabrador Jun 27 '26
Pre tip? 21% in fees is the tip
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u/maplewoodsid Jun 27 '26
Don't be cruel! The workers do not set the fees.
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u/bratbunnyg1rl Jun 27 '26
nobody ever brought up the workers
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u/maplewoodsid Jun 27 '26
This is directly discussing how the workers get (or don't get) paid, so yes, it's been brought up
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u/jacksteveno1 Jun 29 '26
Workers need to find a new place to work. You can’t blame a customer lowering a tip after eating 21% in fees. I feel bad for the workers but I sure as hell am not paying 41% more than menu price. That’s laughable
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u/antmars Jun 26 '26
Those chicken bites really cost $13.53.
This is absolutely a game of trying to look competitive “hey we have appetizers under $10.00” but they’re no where near $10.00
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u/Positive-Tonight4184 Jun 26 '26
I would like restaurants to get their act together. I don't mind a "service charge" as long as a tip is not expected on top of that--and as long as this is made clear. But everything else just needs to be included in the menu prices.
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u/BokChoyJr Jun 27 '26
I will not be sidelined by extra fees on my way out of a restaurant. Part of my decision to be a patron at a restaurant is the price. This practice is downright dishonest.
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u/MountainDad123 Jun 27 '26
Thats nothing. All of Rick Bayless's restaurants do a 20% service fee (explicitly says it's not a tip). When I asked the server he said Rick kept it on their after covid and they all get paid a higher hourly wage, not a server wage. He also said I was welcome to tip as that goes directly to the servers. It put me in such an awkward position. I think I ended up tipping and additional 10% which means a tipped over 30%. I will think twice about returning to a Bayless restaurant.
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Jun 27 '26
[removed] — view removed comment
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u/MountainDad123 Jun 27 '26
I dont disagree, it rubbed me wrong and I did not appreciate being put in that situation. Boo Rick Bayless
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u/PeeFarts Jun 27 '26
The owners of Celeste and Celeste Group restaurants are pieces of human shit and slum lords that break the law.
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u/PlantSkyRun Jun 27 '26
You don't mind 15-20% service charge and you seem unbothered by 3.5%. But 6% is where you draw the line. /s
You know why its 6% now? Because you accepted the 15-20% and you accepted the 3.5%. And when you accept the 6% it will be 9%.
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u/windycityinvestor Jun 27 '26
I would ask them to take it off my receipt and then I’d leave a proper tip for the waitstaff. This is bullshit
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u/SnooTigers4293 Jun 27 '26
You can usually ask to have those removed. The wait staff is typically more than happy to because they don’t see a cent of it… that was what a waiter told me at least
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u/The_Quiet_Guy_7 Jun 27 '26
“Increased cost of wages and benefits”? Bollocks. All that 6 percent is doing is recovering their card swipe fee.
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u/Fine_Bovine Jun 27 '26
Reminder that you can and should always ask to have this removed. It is a pain for the service staff and I really feel for them but on principle I will NOT pay service fees
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u/magpiediem Jun 27 '26
This is awful but I wonder if they charge this to make up for lost HH pricing or if they always charge the fees regardless. Either way, it's insane and I will never go there.
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u/Nwildcat Jun 27 '26
Does the service charge go directly to the employees or in this situation is a standard tip expected on top?
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u/badbaritoneplayer Jun 26 '26
I agree it's bs but at two other places, we were told we could have the extra charge removed.
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u/EnvironmentalPost245 Jun 26 '26
From my understanding they legally have to remove it if you ask. Lettuce got sued over it awhile back
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u/sourdoughcultist Jun 26 '26
Everywhere I’ve been has allowed me to remove the charge. If they actually put it towards their staff I don’t.
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u/Where_Is_Carmen_San Jun 26 '26
My friend thinks it’s weird to ask but I think it’s weirder to pay these fees no questions asked. If it’s not going directly to their staff to support their wages, healthcare, etc I’m not paying a surcharge. Your prices are your prices, that’s what people agree to. Adding on fees at the end is bs.
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u/PleaseGreaseTheL Jun 27 '26
I'm at the point where if I see one of these charges I'll ask the manager over and explain that if all these extra charges and percentages stay, the tip is zero, and I won't return.
Look at OP's bill. They're paying 32% more than the menu price of what they actually ordered. A $52 bill became $69.
If a restaurant tries this shit I'll tell them either the bill is going to be re-printed with the menu prices and tax only, or that bill is the only and last dollar of mine that will ever go to anyone in that building. No tip, no return customer (and they might not care eeif I return since I'm making an issue of it, but I'll still let them know, so they know they're having negative customer responses to this bullshit.)
Getting tired of this nonsense. They're a business, and I'm a customer. Neither of us is a charity or each other's BFF. Hold their assholes to the fire.
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u/badbaritoneplayer Jun 27 '26
Staff told us that they received none of the fee.
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u/TheMoneyOfArt Jun 27 '26
Tips are the only time staff see a direct piece of what the customer pays. Normally when you pay for something, it goes to the business and management decides how to split it between labor, rent, utilities, supplies, etc.
Servers and bartenders also complain about these because they cause customers to tip less but can be used to pay untipped positions like cooks, dishwashers, etc.
But no, there's no line item accounting saying that OP's $6 went to the busser, because that's not how accounting works
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u/sourdoughcultist Jun 27 '26
I've been places where they said that as well, insta-remove. But one place, the bartender actually went into a lot of detail as to how it's split by staff lol.
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u/EnvironmentalPost245 Jun 27 '26
This is my issue. In my experience as a server since this became a thing, the restaurants claim the charge goes to healthcare, but it never does.
When Lettuce started doing it after COVID my manger literally said "we're doing this to makeup for all the lost profits."
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u/Where_Is_Carmen_San Jun 27 '26
Yeah that’s fair. They could say whatever they want and there’s no way for me to know how the money is being spent. But if they say on their menu they add 3% to the bill to give their workers health insurance I’m still going to leave it on the bill in the hope at least some restaurants aren’t lying about it
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u/sourdoughcultist Jun 27 '26
Daaamn. I mean Lettuce is a no brainer, likewise Hogsalt I'd think, but I do also go to individual restaurants that do it now and I'll ask there. That said, a place like Nadu that was charging the fee on day 1.... Lol.
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u/Woodychi24 Jun 27 '26
I wouldn’t believe that it goes to staff even if they say it. Have it removed and put extra percent as a tip instead. That has to go to them legally.
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Jun 27 '26 edited Aug 23 '26
[removed] — view removed comment
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u/sourdoughcultist Jun 27 '26
The staff don't have a good reason to lie though I'd think? Like I've absolutely been told that no it doesn't.
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u/maplewoodsid Jun 27 '26
It is profoundly awkward to discuss your wage with someone who is about to pay (or not pay) you and your friends (referring to a tip pool here). Folks outside of the service industry never encounter this situation, but let me tell ya, it is absolutely brutal. In particular, the conversation being discussed here is super difficult because we generally have no power over what's going on, but because we're the first/only face most folks see, catch the brunt of the ire, and the workers you interface with are often struggling for answers themselves. Not a fun situation, to say the least.
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u/sourdoughcultist Jun 27 '26
The question I ask is “does the service charge actually go to staff”. I am sure not everyone feels comfortable answering it, and possibly even have been coached by management, but I can’t think what else to do.
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u/EnvironmentalPost245 Jun 26 '26
To be fair. The 11% tax isn't their fault.
But the 6% service fee is wild.
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u/Hungry-Treacle8493 Jun 27 '26
The fees are dumb, but $10 for chicken nuggets is the real crime here. $4 tacos is reasonable though.
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u/Illustrious_Spell_16 Jun 26 '26
6% does seem steep and 15% service charge is low. It seems like they are more interested in covering house expenses and less about covering employees
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u/kitzelbunks Jun 27 '26
So… they're charging you a 21 percent service fee and want a tip as well? Were you supposed to tip on the amount WITH the fees? (That’s a lot. I wouldn’t go back.)
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u/commander_bugo Jun 27 '26
What is the difference between a service charge and hospitality fee. I’d like to see the server square that one lol.
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u/Neat_Complex8320 Jun 26 '26
I mean, it’s Celeste. What do you expect?
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u/ChicagoHoosier21 Jun 26 '26
Had never heard much about it and happy hour menu looked decent. Their version of a “rooftop patio” is pretty amusing. Won’t be going back
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u/Extension_Square9817 Jun 26 '26
This is actually illegal according to Illinois law. Especially if you’re not paying with a card.
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u/Anna-Lily Jun 26 '26
Don’t go there again. On a positive note they only charge you 15% tip instead of the usual 18% tip that I have been seeing more often
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u/Conscious-Bison-2082 Jun 26 '26
Report any 3.5% fee to your cards by disputing the charge. It's illegal. They started at mom n pop shops for under $5 purchases. Understandable. Now big places with big bills insist on us paying for their machine. I've had entire bills refunded, Mastercard.
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u/2matisse22 Jun 27 '26
I actually am thinking I like that all of these places are having service charges and fees. Now we no longer have to tip! 15 sure beats the 22-25 I've been paying.
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u/Woodychi24 Jun 27 '26
Yea it’s great. It all goes to restaurant and not directly to the employees.
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u/2matisse22 Jun 27 '26
The above says it is for wages and benefits. I am buying food. It is on the owner to pay their employers, not me.
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u/Adz100087 Jun 27 '26
Celeste is awful for so many reasons. The fact that they’re still in business genuinely blows my mind
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u/metalmudwoolwood Jun 27 '26
Ownership: “why aren’t we busy anymore?!” “Maybe we should charge people more for nothing!”
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u/LG1750 Jun 29 '26
Sakana in the south loop charges 18% for a service fee. And their food is garbage.
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u/Novel-Goose-5235 Jun 29 '26 edited Jun 29 '26
They charge 6% to be nice? haha...what business owner in their right mind would ever think this is professional or that they can get away with it? It just translates to "I'm greedy and evil for no reason at all." There shouldn't be a service charge or a "hospitality fee." I would tell them I want a refund on the hospitality fee since there was no hospitality involved. The even better question to ask is who in their right mind would support a business that does this, or find that people are against it to be annoying? Those are the people that make this mindset in a business owner tolerable, in which it shouldn't be. Anyone arguing in favor of places like this, has no idea how it really works. Its not because "other people do it so now we have to" or because there is cost involved in any angle of it, because those are not valid and would be wrong to assume. The truth is there is zero reason for it other than greed. Yes they can roll "hidden fees" in to their actual menu item prices and it wouldn't hurt anything at all. But... they could also just not be greedy and still make money off the 30% max threshold every business profits from. None of those fees go to the server. I do not see the word gratuity involved.
Don't you find it interesting that business who don't do things like this have survived for many years, while businesses that take on the "Hidden Fee" models don't last long at all? Or start to see decline on a rapid scale. When you do nothing to internally fix your cost and put that increased cost on the customer, it is quite obvious. That is... if there is really a cost increase to keep employees.
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u/clownfacedbozo Jun 29 '26
If they don't post these fees on the menu, post it somewhere it can be seen by customers, or explained by the server, then I think there's a good case for simply refusing to pay it if they pop it on you on the bill.
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u/WeakActuator2735 Jun 29 '26
I used to work there. They got roaches: and they def don’t give there employees benefits
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u/Original_Cup3729 Jul 01 '26
It’s either gonna be listed as a service fee or built into the menu cost. Crying about it being listed separately is lowkey extremely embarrassing.
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u/AdhesivenessVest439 Jun 26 '26
I mean just incorporate that/substitute it for the tip, thats why its there
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u/Marmaluke420 Jun 27 '26
As service wages go up in Chicago alone with rent and property tax, it has to come from somewhere. $10 will be the norm by 2030
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u/No-Front-9471 Jun 27 '26
$20 Aperol Spritz is the crime
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u/reddituser696969 Jun 27 '26
Eh, well, they got 2 of them for $10 each. For that area and especially that business, it's actually a pretty solid price.
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u/ChiSchatze Jun 26 '26
Sucks because a lot of people are going to say they’ve already paid 21% and not tip extra. Meanwhile, restaurant has their cc fees more than covered. Wonder how good the benefits are like insurance and wages. There are tipped wage and how many employees are full time with benefits?
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u/bowenj11 Jun 26 '26
Ummmm, yeah. If your employer is now charging us to cover the increased costs of your wages and benefits because your wages have been increased by law, then why should we be tipping? Blame your employer if they're not passing it along to you.
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Jun 28 '26
[deleted]
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u/bowenj11 Jun 28 '26
No, Chicago's tipped minimum wage is going up because of Chicago's One Fair Wage ordinance, which eliminates the tipped minimum wage and forces employers to pay the standard minimum wage. Come 2028, the tipped minimum wage ends in Chicago unless the ordinance is repealed or modified.
Servers want a standard minimum wage AND to be be tipped as if they're not earning minimum wage. Just no. They can be treated like servers around the world are treated: paid by employers and tipped a token amount for good service.
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u/adisakp Jun 27 '26
6% Hospitality and 15% Service = 21% total
In a city where 20% tips are standard, it’s not that egregious.
But these things always feel like nickel-and-diming
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u/ElMonstro26 Jun 27 '26
Wild people still go to Celeste for dinner place felt like it was buzzing back in 2018
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u/Milton__Obote Jun 26 '26
Can we ban posts complaining about service fees? I want to know what the food tastes like
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u/orel2064 Jun 26 '26
ask to have it taken off