Thoughts on Paying Extra for Employee's Health Ins.

[Cindy's Mom]

These are articles about Los Angeles and Chicago. I do see it happening in my area now, as well. I was not aware that it had been occurring since at least 2015.

https://www.foodnewsfeed.com/fsr/employee-management/are-surcharges-solution-pay-healthcare

https://chicago.cbslocal.com/2018/12/28/restaurants-health-care-coverage-surcharge/

I live in Chicago and this is not a trend, as far as the link, its like one restaurant doing it......

 

[Floridaman999]

I don't think I'd really pay attention to any of this when I choose where to eat. If the food is good and we enjoy our time there, I'll pay what is asked. If the price is not in line with the quality of the place and food, no matter the reason for the cost, I'll find somewhere else to go. I don't have the time to get worked up over stuff like this.

 

[kaytieeldr]

Of the I think nine restaurants described in the three links, eight will remove the surcharge if the customer complains.

 

[FlightlessDuck]

Disney did it the right way.

Except now I'm paying a fee for something I used to get for free for no reason.

 

[kdonnel]

Except now I'm paying a fee for something I used to get for free for no reason.

There is a reason, Disney didn't share that reason with you.

 

[RUDisney]

I just wonder how many people are removing a percentage of the wait staff's tip because they already are receiving 3% toward their healthcare.

Raise the prices and don't mention it. That would give more to the wait staff in tips than what they aren't being paid enough to live on since the total bill is more without calling out that the staff costs the restaurant money to hire and keep.

 

[cabanafrau]

There is a reason, Disney didn't share that reason with you.

I would guess because even the Disney marketing machine just couldn't find a way to make the charges sound even a tiny bit magical.

 

[kaytieeldr]

Raise the prices and don't mention it.

At Rustic Canyon (one of the restaurants in one of the links) only one dish would cost more with the 3% surcharge than by increasing prices $1 per menu item. Diners would have to have checks over $33 to raise their individual checks by more than a dollar.

Restaurants aren't trying to profit from this surcharge. They're trying to remain profitable, retain staff, and comply with the law.

 

[ImDMous]

We have an upscale restaurant group here in San Diego that has done this to all their establishments.
Their menus and website all say "A 4% surcharge will be added to all Guest checks to help cover increasing costs and in our support of the recent increases to minimum wage and benefits for our dedicated Team Members".
It's a thinly veiled "you voted for a minimum wage increase that we don't agree with so you can pay for it instead of us". If they actual did agree with it, they wouldn't point it out and would just raise the prices if needed. They are already upscale restaurants in prime real estate areas with prices to match.

 

[kaytieeldr]

I just wonder how many people are removing a percentage of the wait staff's tip because they already are receiving 3% toward their healthcare.

I would hope none, but if they do I would (futilely) hope they do the math correctly. A 3% surcharge isn't 3% of the tip.

 

[SteveH]

A few years back a ruling impacted how front of the house and back of the house tips were shared, basically you couldn't force front of the house to share their tips. So a local burger & beer place pulled this exact same stunt. They didn't make their surcharge very clear as I would have walked out if I'd seen it. I asked to speak with the manager about the change and got the company line. I did reduce my tip % as I felt it was a bait & switch false advertising move to take on an extra 3%. I also took the time to review them on Yelp, with photos of the hidden charge, and contact the owners and never went back. Well turned out I wasn't the only one, felt that way. Their surcharge back fired, sales declined and eventually they had to rebrand the small chain and they dropped the gimmick. I hoped they learned a lesson. Yes I know menus are not cheap to print, but that's the cost of doing business. If you need to raise your rates, raise them. I have never been back and never will, this elephant remembers.

 

[RUDisney]

I would hope none, but if they do I would (futilely) hope they do the math correctly. A 3% surcharge isn't 3% of the tip.

I agree and understand the difference, but the average curmudgeon may not see things that way. That's my fear for the servers.

Frankly, pay them a living wage and don't make me tip your staff. I'm all for that! Charge more per meal instead of nickel and diming me to pay your workers.

 

[Searc]

You want to know why Disney is now charging for parking at your hotel? Because $12.6 billion is apparently not enough in profits, that's why.

But go ahead and be upset that a restaurant is telling you it's raising its prices 3 percent to pay for employee healthcare.

I can manage both at the same time.

 

[kaytieeldr]

It's a thinly veiled "you voted for a minimum wage increase that we don't agree with so you can pay for it instead of us". If they actual did agree with it, they wouldn't point it out and would just raise the prices if needed. They are already upscale restaurants in prime real estate areas with prices to match.

First, raising prices will cost customers more than a surcharge.

Second, how is adding a surcharge and explaining the reasoning thinly-veiled anything?

Third, why should any restaurant be expected to reduce their revenue?

Finally, there is no tax on a surcharge, and like meals tax, a surcharge is not included in the tip calculation.

Example:
Four course meal plus drink = $100.
Surcharge 3% = $3.
Meal tax 9.5% = $9.50
Tip 18% = $18.
Total = $130.50
-----
Four course meal plus drink = $100.
$1 per menu item price increase in lieu of surcharge = $5.
Meal tax 9.5% = $9.98.
Tip 18% = $18.90.
Total = $133.88.

 

[NYDisGuy]

I don't mind at all. If I cannot afford to eat out and tip well, I will stay home.

Is this just a standard statement that is copy and pasted into every restaurant thread now? It adds nothing to the conversation. It's ok to question restaurant practices, you don't need to call out affordability to somehow justify literally anything that goes on in a restaurant.

 

[Mackenzie Click-Mickelson]

I don't mind paying more if I go out to eat. If I find the prices are too high, I won't go out to eat as much.

Honestly I don't think it is related to that. Most people actually said "just raise the price" so it's not about the costs being too high or being unable to afford a meal.

I wouldn't want a healthcare surcharge or really any surcharge on there like that for a restaurant. I would much rather you just adjust the pricing.

 

[Floridaman999]

If they just raised their prices to adjust for the cost, they wouldn't be able to make veiled political statements that the news can't wait to jump on.

 

[kdonnel]

Second, how is adding a surcharge and explaining the reasoning thinly-veiled anything?

You are right it is not thinly-veiled.

Why only this 3% healthcare surcharge?

Why not a 3% electricity surcharge and a 3% rent surcharge, and a 3% natural gas surcharge, and a 3% workers comp surcharge, and a 3% food cost, and a multitude of other 3% other normal cost of operating a restaurant surcharge?

If it is common to roll in the costs of doing business into the cost of your menu items, why highlight this special 3% health care surcharge?

Because the restaurant owner is politicizing their cost of providing health care.

 

[ImDMous]

First, raising prices will cost customers more than a surcharge.

Second, how is adding a surcharge and explaining the reasoning thinly-veiled anything?

Third, why should any restaurant be expected to reduce their revenue?

Finally, there is no tax on a surcharge, and like meals tax, a surcharge is not included in the tip calculation.

Example:
Four course meal plus drink = $100.
Surcharge 3% = $3.
Meal tax 9.5% = $9.50
Tip 18% = $18.
Total = $130.50
-----
Four course meal plus drink = $100.
$1 per menu item price increase in lieu of surcharge = $5.
Meal tax 9.5% = $9.98.
Tip 18% = $18.90.
Total = $133.88.

It's not about the money at all. I don't want them to reduce their revenue, we really enjoy several of their restaurants (or we used to). I also don't care what I'm paying, I'll pay whatever it says on the menu if that's what I want to eat.

The owner of this group campaigned pretty heavily against this hike, he is clearly not "in support of the recent increases". They started this surcharge in Jan 2017, it's not to cover any unexpected or short term costs at this point. These are all high-dollar restaurants, no one would bat an eye at raising the prices. He has made the choice to remind people of his political opinions on his menus and their bills.

We just go elsewhere, plenty of places where I don't need to be reminded of politics when I pay.

 

[RedAngie]

First, raising prices will cost customers more than a surcharge.

Second, how is adding a surcharge and explaining the reasoning thinly-veiled anything?

Third, why should any restaurant be expected to reduce their revenue?

Finally, there is no tax on a surcharge, and like meals tax, a surcharge is not included in the tip calculation.

Example:
Four course meal plus drink = $100.
Surcharge 3% = $3.
Meal tax 9.5% = $9.50
Tip 18% = $18.
Total = $130.50
-----
Four course meal plus drink = $100.
$1 per menu item price increase in lieu of surcharge = $5.
Meal tax 9.5% = $9.98.
Tip 18% = $18.90.
Total = $133.88.

I'd rather pay the $133.88 than see a health insurance surcharge.