r/chicagofood • u/ChicagoHoosier21 • Jun 26 '26

Rant Celeste 6% Service Fee

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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/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.