The FTC is trying to crack down on "junk fees." Restaurants are fighting to keep fees and surcharges on their checks.

Lawmakers want to crack down on “junk fees,” but restaurants are trying to stay out of the fight.

Surcharges or fees covering everything from credit card processing to gratuities to “inflation” have become more popular on restaurant checks in recent years.

Last year, 15% of restaurant owners added surcharges or fees to checks because of higher costs, according to the National Restaurant Association. In the second quarter, 3.7% of restaurant transactions processed by Square included a service fee, more than double the beginning of 2022, according to a recent report from the company.

Opponents of the practice say those fees and surcharges may surprise customers, hoodwinking them into paying more for their meals at a time when their wallets are already feeling thin. Fed-up diners compiled spreadsheets via Reddit of restaurants in Los Angeles, Chicago and D.C. charging hidden fees. Even the Onion took a swing at the practice, publishing a satirical story in May with the headline “Restaurant Check Includes 3% Surcharge To Provide Owner’s Sugar Baby With Birkin.”

  • bobs_monkey
    39·
    19 days ago

    Yup, at this point it’s just false advertising. Per the article, restaurant owners are saying they want to keep menu prices low as to not scare off customers, which is really just a fancy way of saying they’d rather bait them on the promise of low prices, and then ram the full cost of the meal up their asses at the end of it.

    Just roll everything (cost/taxes/tips/fees) into the menu price. This constant bait and switch in the US needs to finally die. If you won’t survive by showing the true costs your customers need to pay, maybe you need to rethink your business model or find a new profession.

    • JCreazy@midwest.socialEnglish
      21·
      19 days ago

      The way I see it, if a restaurant can’t provide a living wage and also provide reasonably priced food, then the restaurant is being run poorly and the money is not being managed properly.

      • catloafEnglish
        11·
        19 days ago

        And/or the cost of materials is also extortionate. I’m sure Sysco and other restaurant supply companies have also jacked their rates in recent years.

        • Riven@lemmy.dbzer0.com
          5·
          18 days ago

          The thing is, they most non chain restaurants could just buy locally and it’ll be cheaper. It just takes some elbow grease and effort which owners don’t wanna do for better quality stuff.

          I know it’s possible cause every trendy area I’ve gone to eat at has restaurants advertising local produce from farmers market and they’re prices are always the same or cheaper than other trendy restaurants in the area.

          • bobs_monkey
            2·
            18 days ago

            That would require taking the time to actually go out and do the shopping, as opposed to filling out an order sheet and having it brought to their door. Don’t get me wrong, I’m with you, I just don’t see many of the chefs/restaurant owners I know having that kind of time. Margins are already razor thin in that industry as it is, thus why they’re all so crazy about labor costs, and they’re already wearing so many hats to not have to hire someone to do things because they’d end up in the red. It’s not a great business to be in as an independent unless you can manage stupid low rent. But this is also why the chains/corps can thrive the way they do, they have the buying power to actually squeeze out a profit.