I’m asking you a valid question: Am I being petty? Let me clarify.
I Have Some Past Experience With the Food and Beverage Industry
Let me begin by stating that before I began my current profession in the media, I held a variety of positions, such as retail and food and beverage service. I’ve had training on how to handle food properly, I’ve worked behind a bar with an Indian liquor license, and I know that waiters continue to receive the pitiful $2.13 per hour minimum pay for tipped employees.
READ MORE: Indiana Workers Should Get Paid More [Opinion]
I Always Try to Be a “Good Customer” When Eating Out
I constantly strive to be a “good customer,” which means I always attempt to be kind, tolerant, and patient, based of my experiences working as a tipped staff serving food and drinks. Since the federal minimum wage for tipped employees hasn’t increased in over 30 years, I also always attempt to tip well.
A Recent Evansville Restaurant Experience Rubbed Me Wrong
I recently dined at a restaurant in the Evansville area. After our supper, I had an experience that I had never had before, and to be honest, I find it a little disgusting.
A Breakdown Of Our Dining Bill
We ordered a glass of water, a glass of iced tea, two dinners, and an appetizer. When we eat out, this is a fairly typical meal for the two of us.
- Appetizer: $10.80
- Entree #1: $10.85
- Entree #2: $15.70
- Water: $0
- Ice Tea: $2.90
The Billed Prices Matched the Menu But What Is This Fee?!
Everything is perfectly normal. When we placed our order, these were the prices listed on the menu; however, I became perplexed by the following sentence. The “Service Fee,” which was $1.52, I have no idea what it was for. As the adage goes, the $1.52 isn’t going to break the bank, but it was surprising and took me by surprise.
Charged a Mystery Fee and Taxed On It Too
This mysterious cost was added to my subtotal, or pre-tax total, in addition to being charged. The amount, which included the extra surprise cost, was used to compute the 7% Indiana sales tax and the additional 1% food and beverage tax.
I was therefore taxed on the fee in addition to being charged an arbitrary fee without any justification. Naturally, I did what I usually do when I’m unsure about the answer: I looked it up on Google.
“Hey Google, What is a Restaurant Service Fee For?”
Information from TOAST, a business that many restaurants depend on for their “point of sale” systems, was discovered during my internet search. They manage the automation of the food service sector, so waitresses input your order into their “POS” computer rather than hanging a paper ticket for the cookstaff on a metal strip. Your server utilizes the POS to run your credit card at the conclusion of your meal, calculate and print your bill, and communicate with the kitchen workers.
Service Fees Are a Growing Trend Among Restaurants
Service fees are becoming more and more common in the restaurant business, according to TOAST. For things like large parties, bottle service, delivery expenses, etc., service fees are frequently added to the bill. According to them, service fees are frequently employed to counteract inflation.
Asking the Professionals – Evansville Area Restaurant Managers and Owners
My next course of action after searching Google was to consult experts. I talked to a few restaurant owners and managers in the region. In their own experiences, a number of them were unfamiliar with service costs. Others supported the information I had seen at TOAST, which stated that service fees are a means of defraying operating expenses without increasing final costs.
Inflation Is a Continuing Problem for Small Businesses and Consumers
I now completely comprehend (and agree with) the necessity of making a profit, and I also recognize that inflation is a persistent issue that affects both consumers and small business owners.
Shouldn’t The Cost of Business Be Calculated Into the Cost of Goods & Services?
I’ve always believed that menu prices rise in response to increases in operating expenses, such as utilities, food costs, leases, insurance, payroll, etc., in order to keep the bottom line of the firm stable.
Small Businesses Are the Backbone of Our Community
Small businesses, in my opinion, are the foundation of our community. Additionally, I think that being honest, open, and transparent about prices is essential to good company, and I don’t think that a surprise service charge added at the end of my meal is any of those things.
I Still Have So Many Questions About the Mystery Fee
In fact, it raises a lot of questions for me. Is the cost per table fixed? Is the cost per person? Does that represent a portion of my order? Do you see what I mean? It’s unclear. It doesn’t feel honest since it isn’t transparent.
It Just Feels Icky to Find a Fee at the End of the Meal. Thoughts?
To be clear, I’m not saying that the restaurant is dishonest in any manner; rather, I’m saying that the practice of tacking on an arbitrary cost at the end of my meal makes it feel that way. It simply feels, well, disgusting. I’d love to hear what you think. Do you believe that unstated service costs are acceptable or unacceptable? In order to cover operating expenses, would you rather see menu prices go up a few cents overall?
