Restaurant surcharges & service charges: threat or menace?

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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HM, your reasoning is probably correct, but I’d appreciate full disclosure (as would many others) even though I’ll never eat there (too expensive for my Social Security income).

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From the servers’ perspective, if management institutes a service charge and they don’t get tips, the pay is bad relative to anywhere they’d get the same pay (or even a few bucks less an hour) and tips.

I’m just suggesting the proof of the injustice lies in part in how bad their service is. I’m not a fiscal conservative and I hate even saying this, but if they’re being underpaid relative to other wait jobs in the market, they wouldn’t be able to retain decent talent.

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Just had breakfast at zazie in sf. At top of the menu in big letters No tip expected or required. Just a signature line on the check. Glad they’re able to make it work

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That looks so yummy.

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I agree with this. Animal (who has similar or same fee policies as the pizzerias) was closed way longer than other J&V establishments and LA restaurants. Yet when they returned earlier this year we saw familiar faces and our server said he was one of only two new workers in the house that night front and back. The rest worked there before the lockdown and some for years. Service and food were excellent as usual. These things say something. The truth possibly lies somewhere in the middle on this one.

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Animal may pay better because it’s an ambitious restaurant and largely responsible for the reputation Jon & Vinny have been coasting on as they roll out their lazy chain places.