ajr_images/Getty Images/iStockphoto
1005984006
What do you think about restaurants adding a ‘COVID surcharge’ to the guest check? —Scottie C., Eureka
The surcharge phenomenon first arose in May, after some restaurants imposed a fee in response to rising wholesale prices resulting from COVID-19–related shutdowns of some meat-processing plants. Even when the price was minimal, customers objected to the surcharge, and such restaurants as Kiko Japanese Steakhouse and Sushi Lounge in West Plains, Missouri, eventually removed the surcharge, either absorbing the loss or raising menu prices instead.
As the months wore on, hair salons and even dentist’s offices began to impose fees for COVID-related expenses. As extra costs became more evident to restaurants (for increased carryout and delivery, extra sanitation, personal protective equipment for employees, to say nothing of increased food prices), surcharges began to appear on guest checks at some restaurants, sometimes as a percentage of the bill but often as a fee per person or per table.
It’s important to realize that restaurants have dabbled in surcharges before, passing along the costs for credit-card processing or hoping to offset the cost of providing health care for its workers. But implementing a surcharge in a restaurant situation, even if disclosed in advance, is risky. While some diners are supportive of such fees (wanting to support restaurants in whatever way they can), others are opposed.
Patrons must also realize that a service charge—or any charge, for that matter—is negotiable, and opting out is always an option. If a customer is not happy with any charge, an establishment would rather reduce or waive it than create ill will, but most guests end up paying such fees reluctantly rather than discussing them with management, which is understandable.
For that reason and more, I've long been opposed to the appearance of incidental fees appearing on guest checks. While health insurance or COVID-related charges carry more weight than the extra 50 cents levied for a slice of tomato on a cheeseburger, the result is the same. A customer never wants to feel imposed upon or nickle-and-dimed. If that’s the impression that the customer leaves with, then the restaurant has failed. I contend that it’s far better to raise menu prices to cover any increased costs than to risk alienating or losing a customer.
Advocates of the surcharge theory argue that they can be raised, lowered, or eliminated depending on current circumstances, whereas menu prices often go up but rarely come down, which is true. And while both occurrences can irritate a guest or even drive them away, given the current environment, I feel that paying a higher price for menu items is the more acceptable alternative and therefore is the least bitter pill to swallow.
A friend summed it up this way: " Customers understand that these are extraordinary times and expect to pay a little more, but they don't want their check to read like a cellphone bill. Message to restaurants: Don't make excuses; don't give us too much information. Just raise your prices. We'll pay."
Follow George on Twitter and Instagram, or send him an "Ask George" email at gmahe@stlmag.com. For more from St. Louis Magazine, subscribe or follow us on Facebook, Twitter, and Instagram.
