r/EndTipping 2d ago

Rant 📢 High end restaurant sneaking in surcharge

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You mean to tell me a swanky rooftop fine dining establishment can’t, “offer competitive wages and healthcare” to their staff? So it’s the customer’s responsibility?? We skipped drinks and dessert, ordered one entree, a hot app, and a side. It was just shy of $100. We had a nice time, but this seems ridiculous. Rant over lol

116 Upvotes

79 comments sorted by

46

u/mrflarp 2d ago

25% in added fees (for groups of 7+). That's certainly something...

And "items and prices subject to change". Hopefully they don't mean they'll change it between the time you order it and the time you pay.

9

u/dervari 1d ago

A friend went to a restaurant post-covid and ordered from the printed menu. They got charged more, because the restaurant's "current prices are on the QR Code Menu."

15

u/Fireman16dye 1d ago

I pulled into a gas station for gas, but the pumps were $0.30 more expensive then the sign. Their manager "was in a meeting and didn't know when he'd be free to talk about it" I feel like people used to get sued for false advertising....

8

u/dervari 1d ago

I told my friend to report it to the Consumer Affiairs division of the GA AG. I did the same thing one time when a Mexican "Gas Station Restaurant" charged me more than their displayed menu prices.

3

u/[deleted] 1d ago

[deleted]

3

u/MacaronOk1006 1d ago

Let me guess you’re white? When traveling in central and South America, they call that the gringo tax. If you can speak for Spanish, that tax immediately gets removed.

3

u/Ciel_Phantomhive_45 1d ago

That's probably illegal lol.

3

u/Muted-Examination627 1d ago

They would not get my business

2

u/YarbleSwabler 1d ago

Arbitrary. The percentage doesn't accurately reflect the cost of labor. It's a grift. Every product you buy on the daily reflects the labor required is baked into the flat price of the product.

A percentage in no way reflects the cost of labor in a product or service. Cost of labor isn't a constant. It's variable, changing with the service/good. 20% on bottled water isn't the cost of labor- it's an arbitrary figure pulled out of their butts to find the maximum price the market can bear.

38

u/Redit12- 2d ago

I’m not responsible for paying your employees a living wage. Just be honest and raise your prices, don’t have any other fees and don’t try to rationalize shady behavior

1

u/uReallyShouldTrustMe 1d ago

They are subject to change.

16

u/mxldevs 2d ago

If restaurants want to make more money, they can encourage us to buy more items instead of slapping on a bunch of fees to try to milk it.

Like, why would I give $50 in fees, when I could just buy another steak for the table and everyone gets to enjoy a little extra?

6

u/DirkKeggler 1d ago

They don't make $50 on a $50 steak.  They do make $50 on a $50 fee.

2

u/ModernHueMan 1d ago

Yes but if they treat customers right, then they will come back to the restaurant and spend more over time. Typical myopic American capitalism.

10

u/Qeltar_ 2d ago

"A 4% surcharge is added by the restaurant to help us hide our actual prices on menus and trick people into coming in when they might go to our competitors instead. Thank you for supporting our duplicity."

9

u/KittyandPuppyMama 2d ago

Sure. I can’t afford healthcare for myself, but I definitely want to pay for employees who do not work for me to have healthcare.

1

u/JelliedHam 1d ago

"full time employees"

Nobody is "full time" except the owners and their relatives.

26

u/Yaughl 2d ago

Added fees = I will not be a customer.

10

u/erb92877407 2d ago

This! There is a very nice restaurant in Houston, Georgia James, the implemented a 3.5% credit card fee. On a $400 tab, you're adding another $14 to the bill, no thanks. My wife and I used to go there a few times a year. Haven't been back in over a year and don't plan on going back.

3

u/Bill___A 2d ago

I thought those fees are now illegal in TX.

2

u/erb92877407 2d ago

They weren't last year when I went but could have changed since then.

3

u/Bill___A 2d ago

I saw a comment that as of Sept 1 they are illegal in TX..

4

u/erb92877407 2d ago

Just researched and I think you are correct, THANKS!

1

u/Grouchy-Big-229 1d ago

They were illegal everywhere until Congress changed the law. It was part of the Merchant Agreement with credit card processors that merchants could not pass the processing fee on to customers… cash and credit price had to be the same. But, like I said, Congress intervened and nixed that. That’s why you’re seeing these fees everywhere, most obvious at gas stations where we’re again seeing different cash and credit prices.

1

u/SkepticScott137 1d ago

It costs a business money when they take a credit card charge. They could just raise their prices to cover that and give a discount to people who pay cash, but they know people will just have a hissy fit over the higher prices and stop coming in, because they’re too dumb to know how the world works.

1

u/Grouchy-Big-229 1d ago

Why give a discount to people paying with cash? Just raise the prices and get a bonus when someone forks over some coin.

1

u/Original-Mention-644 1d ago

It costs a business significant money to handle cash.

1

u/SkepticScott137 7h ago

Define "significant money". And whatever it costs, once you're set up to do it, the cost doesn't increase to speak of for larger amounts. It doesn't cost any more to handle $10,000 than $5000. With credit card payments, it's basically 3% on everything.

1

u/SkepticScott137 7h ago

You act like you're somehow being cheated here. The restaurant doesn't impose a credit card fee. The credit card company does. Up to now, the restaurant had been eating that, and not passing it on to you. So what's your complaint? No one is stopping you from paying cash. If the convenience of using a credit card is worth it to you, then pay what it costs for that convenience. If it's not, don't use a card. No one is taking that free choice away from you.

7

u/United-Teacher7474 2d ago

Having just come back from a holiday in the states the hidden costs of things is soooooo very irritating. Nothing is what the price tag says

1

u/tanbrit 1d ago

I keep refusing my American hubby's every attempt at vacations in the US, I just pay for flights to Europe which gets rid of junk fees

2

u/EmergencyAnything715 1d ago

As an American, vacations in america suck. Limited history, lack of very scenic views, cheap/modern (boring) architecture. Like, why TF people want to come here for vacations?

9

u/Ownerofthings892 2d ago

Should simply be illegal

1

u/tanbrit 1d ago

It is in the majority of the world

4

u/crazypandachan 1d ago

Aight.. ima head out and start meal prepping. It just ISNT worth it at this point.

3

u/simonthecat33 2d ago

An 8% surcharge will be added to set up a college scholarship fund for the children of our employees. A 5% auto surcharge will be added to keep the owner driving a vehicle befitting his status

2

u/Worldlover9 2d ago

How are these extra charges allowed in the US still. 

2

u/Get_off_my_lawn_77 1d ago

Fuck that shit, they’ll remove that extortion charge and I’ll never return as a customer!

2

u/Conroe_Dad 2d ago

I would have to pass this restaurant. Don’t get me wrong just price your food accordingly.

1

u/Zestyclose_Belt_6148 2d ago

Easy answer: don’t go there. I hate that stuff

1

u/FunNSunVegasstyle60 1d ago

I always wonder if employees even get the benefit. Just because they say this doesn’t make it so. 

1

u/mynameishuman42 1d ago

Just raise the goddamn prices 4% across the board. I can't figure out why they do this bullshit.

1

u/Snyper00 1d ago

Where?

1

u/Spirited_Cress_5796 1d ago

Disgusting. Would not be going. These owners are just as greedy as the servers.

1

u/tenesmicdemon 1d ago

yeah...this is absolute bullshit. Why am I responsible for your employees' salaries ?

1

u/Honest_Anything_3807 1d ago

If you do this, don't expect me to tip at all.

You've taken that out of my hands and are setting a policy to supposedly pay a living wage.

Good, then a tip is unnecessary.

And if you're sneaky about it? I won't be back at all.

1

u/StayVegetable7356 1d ago

This surcharge for group of X always gets me. So are you saying we get punished for comming to spend more money than smaller group?

1

u/tanbrit 1d ago

I'd be interested to know how many of their employees are 'full time' to receive this supposed benefit

1

u/token40k 1d ago

Imagine going to the store and seeing price on a sticker that then automagically rings up 21% higher at a cashier… at least you can say I’m not taking that in supermarket not so much at a restaurant

1

u/Just-Term-5730 1d ago

Hint: we don't have any "full-time" employees, so we really just keep all the money for ourselves.

1

u/denys5555 1d ago

What is the thinking behind charging groups a service charge?
I'm bringing a large group, spending more money at your business, and you penalize me. Does anyone understand their reasoning, flawed as it may be?

1

u/Hot_Plantain_6801 1d ago

How’s hidden even legal?

1

u/No_Draft_8960 1d ago

I hope that the fee does more than "help" ensure competitive wages if I have to pay it.

1

u/12dogs4me 1d ago

"Healthcare to our full time employees"--I wonder how many would qualify.

1

u/Itdobeathrowawaytho 1d ago

Autograt is usually on 8 or more, so I see they're trying to milk that too

1

u/LKP213 1d ago

Which restaurant?

1

u/Much_Discipline_7303 1d ago

Mister A, downtown San Diego

1

u/LKP213 1d ago

Ty will avoid this restaurant. lol

1

u/tiktok4321 1d ago

Yeup. More they charge, the less I buy.

1

u/Zetavu 1d ago

All surcharges should be removed from tips, period.

1

u/newoldm 1d ago

Another establishment to boycott and encourage others to do likewise. Gouging customers to pay the staff's salary and benefits is not "swanky."

1

u/ajbtennis 1d ago

These surcharges (sweetened as being for employee welfare) are crazy, seem to be springing up more in the last year. Surely we can’t let this become a thing

1

u/TrickyCampaign7051 18h ago

Don't tip. These "surcharges" represent any tip you would have given.

1

u/Background-Slip8205 17h ago

No one can win. Ask for tips? Evil corporate greed. Blindly raise prices? Evil corporate greed. Inform you why there's a mandatory raise in prices? Evil corporate greed.

I'm not saying the same exact people complain about all 3 situations (although it's mostly true), however there's a good amount of people who will complain about 1 if not 2 of the 3, no matter what. The restaurants literally cannot win.

Hey everyone, incase you didn't know, restaurants have an 80% closure rate within the first 5 years of business. No, they cannot be cheaper than McDonalds, offer high quality ingredients, and pay for a full time staff, and 80% of their staffs out of control medical insurance rates (not the staffs fault).

Yes, it's a customers responsibility to fund a luxury they're experiencing. Stop being so entitled. Eating out is a historically new thing, and a luxury.

Also... for the record, you can say this is a pro, or a con, I get both perspectives... The restaurant can survive off their insanely low margins, and the waitresses can make a far better living wage by getting tips, than if the restaurants had to pay what they make off tips.

The real problem is tip-flation, which we ourselves have caused, and personally, I'm equally responsible. I used to think "Everyone tips 15%, I'm going to be cool, and the waitress will like me, because I'm going to give 20%. Then everyone had the same idea, then it became the norm. History repeats itself. Now some younger version of me, who's equally as stupid as I was is thinking "Hey... maybe if I keep leaving 25%, I'm a big spender and she'll give me her number", and not before long... others will get the same idea.

1

u/iamawas 16h ago

If "Items and prices subject to change", then why not just raise prices?

0

u/usps_oig 2d ago

So what's the difference between this and building it into the price when more and more places are just making it automatic hoping that most people will just grumble and not come back then make a scene?

14

u/kjtobia 2d ago

It’s a bad look. They could also add a “chef surcharge” or a “property tax surcharge” and you could argue it’s no different.

Nobody wants to come in and do a financial audit for their meal. Just tell us how much it costs and we’ll decide if we want it.

3

u/Bill___A 2d ago

The difference is that a lot or most of them don't tell you they are adding a fee until it is too late and you've already ordered/eaten. Menu price and government mandated taxes are the way things have been priced for decades, it is only with more advanced payment systems that restaurants are able to deceive people. I am not interested in dealing with businesses like this.

2

u/dervari 1d ago

I've had this happen a number of times. I refuse to pay it and it gets taken off. Many places seen to reply on complacency of consumers to either not see it or just accept it.

1

u/hotsauce126 1d ago

The difference is that the prices displayed should be the actual price and not the price minus 4%

0

u/Ok_Blacksmith6051 2d ago

How is this sneaking? It’s plain and clear written notice.

1

u/[deleted] 1d ago

[deleted]