The Hidden Fees of Dining Out

How to Avoid Surprise Charges

Diners beware! Many restaurants are adding hidden fees to your bill besides just the cost of food and drinks. These surprise charges, often called "junk fees," can be frustrating and leave you feeling nickel-and-dimed.

Here's what you need to know:

What are Junk Fees?

Junk fees are surprise charges added to your bill that aren't explicitly included in the menu price. Examples include:

• Kitchen appreciation fee

• Back-of-house fee

• Healthcare fee

• Facility fee

• Reservation fee

• Credit card processing fee (in some states)
  

Why are Restaurants Adding Junk Fees?

Restaurants face rising costs for labor, ingredients, and rent. While some raise menu prices to cover these costs, others add these extra fees.

The Problem with Junk Fees

• Surprise: They're not advertised upfront, leading to sticker shock at checkout.

• Unclear Purpose: Where the fee goes (wait staff, kitchen staff, or profit?) is unclear.

• Transparency Issues: Creates a sense of dishonesty and reduces customer trust.

How to Avoid Junk Fees:

Unfortunately, there isn't a comprehensive list of restaurants that charge junk fees. Maybe we should create one- what do you think?

You can be proactive:

• Read the Fine Print: Menus may mention additional fees in small text at the bottom.

• Ask Before You Order: If unsure, politely ask your server about hidden charges.

• Look for Reviews: Online reviews sometimes mention surprise fees.

• Use Apps like "Chowhound" or "Yelp." Reviews on these platforms may mention fees.

Credit Card Processing Fees: A Hidden Cost for Diners

The prevalence of credit cards has significantly reduced the need for cash. It's convenient and secure and often offers rewards programs for frequent users. However, the fees associated with processing credit card transactions can frustrate diners now that many restaurants add 3-5% to their already inflated prices.

Why Shouldn't Credit Card Fees Be Passed on to Customers?

There are several reasons why credit card processing fees should be considered an average operating cost for restaurants, not an extra charge for customers:

• Customers Expect Convenience: In today's digital world, customers expect to be able to pay with credit cards. Forcing them to use cash inconveniences them and can lead to lost business.

• Reduced Fraud and Theft: Credit cards offer significantly more security than cash. Restaurants benefit from reduced theft and the ease of handling disputes.

• Increased Sales: Studies show that customers spend more when paying with credit cards than cash. This translates to higher revenue for restaurants.

Transparency is Key

While restaurants can raise prices to cover operational costs, including credit card processing fees, transparency is key.

Here's a better approach:

• Build the Fee into Menu Prices: Factor in the average credit card processing fee into your menu pricing so customers know the total meal cost upfront.

• Offer a Cash Discount: If some customers prefer to pay with cash, incentivize them with a slight discount to offset the processing fees you avoid.

What Can Diners Do?

• Support Restaurants with Transparent Pricing: Patronize restaurants that clearly state their prices and don't add surprise fees at checkout.

• Express Your Displeasure: If you encounter a hidden credit card fee, politely let the restaurant know you disapprove.

• Support Legislation: Advocate for laws requiring restaurants to disclose all fees upfront, including credit card processing fees.

By working together, restaurants and customers can create a fairer system where credit card convenience doesn't come with a hidden price tag.