Thoughts on Paying Extra for Employee's Health Ins.

[North of Mouse]

Some restaurants adding an extra 3% on food tab to help pay for waiters health insurance? What next? I am totally not in favor. The restaurant itself needs to chip in - not the patrons who already tip them. Just my 2 cents!!

 

[cabanafrau]

I'm guessing the restaurant is trying to explain their price increase and think many customers would feel like misers if they complained.

 

[cluvsdisney]

I hate surcharges like that. If they can't cover the additional expense, either raise the prices or reduce a different expense. It's unnecessary to itemize their business expenses on the customer receipt.

 

[jrmasm]

Never heard of this before. What restaurants?

 

[FlightlessDuck]

Honestly they could just raise prices and not tell you why. What difference does it make?

What if they raised prices 5% and told you it was to give their investors more money? Is that better? Honestly, that's the point of a business: to make money.

 

[mnrose]

No need to surcharge it. What's next? A "surcharge" for the increase in the price of laundry for their napkins and tablecloths? I get a "fuel" surcharge added to things like my garbage bill, but even that never seems to go away. The concept of a "surcharge" is that it's TEMPORARY to cover an unexpected fluctuation in the price of something. Anyone think that health care insurance costs are "temporary" or that they will ever decline? LOL

 

[Magical2017]

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

 

[ronandannette]

Some restaurants adding an extra 3% on food tab to help pay for waiters health insurance? What next? I am totally not in favor. The restaurant itself needs to chip in - not the patrons who already tip them. Just my 2 cents!!

Ridiculous and the last time I’d patronize that restaurant.

 

[Cindy's Mom]

Where is this happening, so I make sure I never go there.

 

[kdonnel]

The restaurant owners are trying to draw attention to the why of the price increase.

Politicizing your small business rarely works out well for the business.

Increase your prices, and keep the why secret. Keep your politics separate from your business.

 

[AgentMama]

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

I don't understand this comment. The surcharge has nothing to do with service provided or whether or not people can afford to eat out.

I think it's tacky and would probably chose not to eat there on principal. Providing health insurance for your staff is a cost of doing business, either increase your prices or take the P&L loss, but those costs have nothing to do with the customer or the service they're getting.

 

[Floridaman999]

Where? Do you have an example op?

 

[Magical2017]

I don't understand this comment. The surcharge has nothing to do with service provided or whether or not people can afford to eat out.

I think it's tacky and would probably chose not to eat there on principal. Providing health insurance for your staff is a cost of doing business, either increase your prices or take the P&L loss, but those costs have nothing to do with the customer or the service they're getting.

Restaurants in cities where there is a minimum wage increase are also starting to add on surcharges. Whether for insurance or wage increases (or any other reason) they can either raise prices or list them as a surcharge to offset costs. They are trying to stay in business. 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.

 

[Magical2017]

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/

 

[kdonnel]

Where? Do you have an example op?

I saw this one in the news recently. Not sure if this is the one that triggered the post.

https://www.kvue.com/mobile/article...ills/269-b7dfed7a-78b5-47e5-9aff-f6103e16d607

 

[FlightlessDuck]

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.

 

[kdonnel]

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.

Disney did it the right way. They increased a price or added a fee without stating a political reason.

If they added a 3% line item to hotel bills for healthcare or minimum wage increases.....

Either way covers new costs.

One way alienates roughly half the customers on a politics basis. The other way makes people grumble for a bit and a much smaller percentage stop coming.

 

[North of Mouse]

Where? Do you have an example op?

This was in Austin, TX, but didn't seem to be the only one - a recent trend?? Not sure how to copy and paste or I would, but in the news today.

I will not patronize a restaurant that does this. It has nothing to do with the food or service - tips are plenty. Can't believe that some just accept this as part of eating out - no, it doesn't. But the ones that blindly pay/accept this surcharge will help keep this outrageous trend going.

 

[Hikergirl]

I have no problem with businesses raising their prices in order to do business. Offering health insurance to employees is part of that.
Having said that, I would rather they just raise the prices, don't put on a surcharge for X,Y,Z for employees this or that on the receipt.
IMO I think that will hurt those employees. Nobody would question a 3% increase in their bill, in fact I doubt most people would notice it.
However when you put it as a surcharge for specific employee benefits, I think customers are going to tip less because they will think- well I'm paying 3% extra for their health insurance now, I don't need to tip them so much. Not all customers and maybe it won't make a difference at all, but I think there are enough out there where it might in the long run.

 

[kaytieeldr]

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

Nice, reasonable explanation. And it's likely the surcharge isn't taxable. Taxes are why airlines separate out fees, and why hotels add resort fees - both instead if raising prices.

Three percent? So until you get to about $27, the surcharge is less than the price increase being suggested here. Probably completely, in fact, since each menu item would be increased.

Disney did it the right way. They increased a price or added a fee without stating a political reason.

Curious who here owns a restaurant as is willing to share revenue and expenses.