K-STREET, 10,000 FEET: The hospitality industry’s surcharge spree is going hog wild
THE LOWDOWN:
The hospitality industry has taken to adding unwanted and unnecessary fees to patrons’ bills.
The Washington Reporter reviewed several receipts that included wonky fees, including a “Covid 19 Surcharge” in Chicago and a 5 percent “Dine In” surcharge at a Spanish restaurant.
Some groups are pushing for legislative reform at the national level.
Americans love food. From New York City pizza to Cajun cooking, food is an integral part of our national identity. America’s cuisine scene is a mishmash of cultures and flavors that create some of the most incredible culinary experiences the world has seen. Our nation is home to celebrity chefs and Michelin recommendations for immaculate dining experiences, from Bib Gourmand Ethiopian food in Georgetown, D.C., to Michelin-starred sushi in downtown Dallas, Texas.
Still, what many Americans experience when they go out to dine is not just good food and (presumably) good service, but is instead a trend of towel-wringing designed to get as many dollars as possible out of customers.
Since before the COVID-19 pandemic, restaurants have tacked on these fees to customers’ tickets while simultaneously complaining about the high costs of doing business.
Post-pandemic, the problem has skyrocketed, with Americans facing even more hidden fees to just get a bite than ever before. Hidden fees are now pervasive in the hospitality industry, ranging from local ordinances requiring compliance to highway robbery for deigning to eat at your local burger joint during a pandemic.
In fact, even just using a credit card — now a commonplace and restaurant-advantageous replacement for cash, especially in crime-ridden cities like Washington, D.C. — can net you an unwanted fee, just for charging it instead of counting out your dollar bills. These practices are designed to shift the cost of the business directly onto the consumer, allowing restaurants to pay servers and other tipped staff less than the minimum wage. And, on top of these extra fees, patrons are expected to tip their servers the same 15 to 20 percent that is expected.
The Washington Reporter reviewed several receipts given by a source and notices from various restaurants containing these hidden fees — many of which may (or may not, if you’ve been on the receiving end) shock you.
One restaurant had a tame, but unnecessary, $0.99 “Takeout Fee.” Another restaurant, a Spanish place, more egregiously charged customers a 5 percent “Dine In” surcharge while a Chicago eatery charged both a 10.25 percent city tax on top of a 26 percent “Covid 19 Surcharge.” Another restaurant told eaters via a notice that “a 4% hospitality charge will be added to all guest checks.”
“This surcharge is not a gratuity payable directly to staff,” the restaurant’s notice said.
A Vietnamese restaurant continued this trend with a 3 percent “Employee Benefits Surcharge,” an Italian eatery charged attendees a 4 percent surcharge to cover “Health Insurance for Staff,” and a pizza joint carried with it a 2 percent “Kitchen Appreciation” surcharge.
“A 10% fair-wage charge has been added to every check to ensure the staff are paid the minimum wage, mandated by Initiative 82,” a D.C. restaurant noticed patrons. “Tipping is still a vital part of the compensation for our staff.”
There is hope, though. This practice by the hospitality industry, fully embodying its own caricature in one Eugene Krabs from Bikini Bottom, can see change through legislative reform. Still, big-name corporations and restaurant trade groups are pushing bills in state legislatures to continue shifting costs to consumers, perhaps lawmakers should instead focus on ensuring consumers know what they are paying before they get their bill instead of allowing these stores to rake in millions while trying to shift the blame for their higher prices.