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Restaurants fight back against the FTC crackdown on 'junk fees' as diners balk at new charges (www.cnbc.com)

submitted 2 months ago by [email protected] to c/[email protected]

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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.”

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[–] [email protected] 59 points 2 months ago (1 children)

get rid of ridiculous fees
get rid of tips
pay your staff a living wage with proper benefits
set real prices on the menu to account for the above

Which is what restaurants in a number of places that are not the US actually do.

[–] [email protected] 9 points 2 months ago (1 children)

And if we aren’t willing to pay those prices we can let the industry shrink. I love restaurants, but I see people using them as a convenience instead of a night out but that makes financial sense some places but not here not today.

[–] [email protected] 3 points 2 months ago

As someone who grew up in the US and worked in nearly every position in a restaurant (from serving to cooking to managing) and now lives in another country, it's wild how cheap restaurants are in the US. They can definitely shrink. Maybe at that point we might do something about food deserts. I'm also not sure if/how it's correlated with the obesity epidemic, but I wouldn't be surprised if it's also a factor.