Restaurant surcharges & service charges: threat or menace?

I think Jon and Vinny just want more money…how are they virtually the only restaurant that does this with (very small) portions, few front of house/waiters, small space and still charge it? It doesn’t add up at all.

Many higher end San Francisco restaurants have a service charge.

I go to a restaurant because I really like the food. Good service is a plus. In my reasoning, service charges just add to menu prices. You either think the cost is worth it or not. I’d rather pay service charge at a place with excellent food than none at a mediocre place, given same menu prices…

Well, I think MOST people go restaurants primarily because they like the food, but there may be other reasons to go, or to not go.

There’s a place in my city that, by all accounts, serves up great food, but also has their establishment bedecked with political signage and slogans. The signage has no bearing on if the food is good, but as I’ve said before on this board, if a business goes out of their way to advertise their personal, political, religious, whatever beliefs in conjunction with their business, it’s pretty clear they WANT their customers to take that information into account when choosing to patronize it. So I do, and as I find their politics pretty repulsive, choose not to patronize them.

The same goes for places that treat their workers especially well, or especially poorly, or that do, or do not, try and give back to the community they’re located in. Or that add a service charge claiming to go solely toward staff and do, or do not, keep that promise. Any of those issues is as valid as any other for choosing where you want to spend your money.

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I totally agree that political or religious proselytizing has no place in a restaurant, or one that I would patronize. And that I would like to patronize places that treat their staff well and support the community, but those are not reasons for me to go to that restaurant if their food isn’t stellar. I would rather donate to relevant causes than sit through an ordinary meal.

14 posts were split to a new topic: Credit card processing fees

I loved Snail Bar, and think we tipped/no service charge (?) can’t remember my friend paid, haven’t been to Slug yet

https://www.reddit.com/r/OaklandFood/comments/ww3deh/worker_calls_out_snail_bar_for_pocketing_service/

originally a SF Chron article, removed paywall

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how much do people tip at these places??

Santa Monica requires service charges to be distributed pretty much like tips:

An Employer shall distribute all Service Charges in their entirety to the Employee(s) who performed services for the customers from whom the Service Charges are collected.

https://library.qcode.us/lib/santa_monica_ca/pub/municipal_code/item/article_4-chapter_4_62-4_62_040

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My restaurant charges customers service charges. Will I need to change my current process?

Yes, most likely, per SMMC Section 4.62.040. The law requires service charge proceeds to be distributed to employees generally contributing to the customers’ service (including back of house staff). Service charge proceeds cannot be distributed to employees whose primary roles are managerial or supervisory. Employers are also required to disclose in writing their plan for service charge distribution and report to employees the amount of service charges collected. The business cannot deduct credit card processing fees or costs from the employee’s distribution.

The law also addresses transparency concerns for the customer: employers must clearly disclose all service charges to customers before they make a purchase or selection.

Lastly, the employer cannot automatically include any optional charge in a bill. If the charge is optional, a customer must write it in.

Berkeley, Emeryville, and Oakland reportedly have similar laws.

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Service is provided by the server, so assume that the service charge is for their “service”
I the restaurant charges service charge of 18% I consider to be the tip. If the service was exceptional I will leave $20-40 for the server in cash. If I do not have cash on hand (rarely so), such is life…
As is somehow ‘health fee’ is now my responsibility. What’s next? Restaurant’s fire insurance fee, restaurant workers children school tuition fee, etc.

Unless there’s a local ordinance specifying what restaurants must do with them, you can’t assume anything about service charges beyond what, if anything, the restaurant discloses.

The health surcharges started in response to local governments imposing health care requirements. Just raising prices wouls increase gross receipts, which restaurant leases often give landlords a percentage of.

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What are people’s thoughts about credit-card charges?

One place in Morro Bay charges a 2.99% surcharge for using a credit card (listed on the menu). What made me upset was that the bill I received already had the surcharge added, even prior to me pulling out my credit card. Tacking on a credit-card surcharge is already a bit iffy (I think we might’ve discuss this b/f), to my understanding, and I found it particularly off-putting that it was added automatically to the bill w/o any comment.

My bank is located 4 miles away; I assume I would be charged a fee to use the ATM at the other “outside” banks that are closer to where we’re staying.

My partner ate at the place a few days ago on his own and paid cash. Not sure if they removed the surcharge when he paid cash (he didn’t check).

What’s the problem w/ a take-out tip line?

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They’re just passing along the fee the credit card processor charges them. If you didn’t have enough cash you could probably avoid the charge by using an ATM card.

Better marketing to present it as a cash discount.

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Yes, I understand that. But shouldn’t it be added to the bill after I present them with a credit card, not before?

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It’s totally sketchy since it doesn’t say that the entire service charge goes to the employees on top of their wages, or to pay for health care, or that none of it is used for operating expenses, or whatever.

Per hearsay from alleged employees and ex-employees of the Jon & Vinny’s group restaurants posted here, it doesn’t.

“Money is not great, owners put on an 18% service charge that goes straight to them.”

“Upper management doesn’t care about you 18% service charge included on all checks that goes directly back to the company… literally stealing your tips.”

“18% service charge so people dont tip. Owners don’t respect employees.”

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Based on my experience with a different J&V restaurant and another restaurant group. If it’s not clearly stated were the money goes, then it’s mostly going to the business.

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That’s some bs I love Jon and Vinny’s food but I think I’m probably going to boycott them in the future.

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Their food is great, but I’m not returning until they either drop the service charge or clearly disclose where the money is going.

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My question would be, if the servers’ take home pay is truly that bad relative to other restaurants, how do they get anyone to work there? Unless there is constant turnover, or particularly bad service (which I’ve never experienced at their spots), one would think folks are getting paid at market rates

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