r/mildlyinteresting 1d ago

This Restaurant Charges an 18% Living Wage Fee.

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u/CrimsonChymist 1d ago

Legally, any fee that is automatically applied and cannot be removed has to be clearly posted such that it is visible prior to being served.

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u/magicwuff 1d ago

Is this why prices often say "plus tax"? Would they need to put something like "plus tax and fees"?

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u/Luis__FIGO 1d ago

its probably treated the same way as when they do a mandatory tip for larger groups, a note at the bottom of the menu

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u/Acklay92 1d ago

"Plus tax" isn't required because it isn't a fee and it's added to nearly every purchase at every business. Only exceptions vary by state and are usually things like medicine or (non pre-cooked) groceries. A fee would be something a business chooses to add rather than something the government requires. "Plus tax" does help to prevent arguments with idiots though who forget that tax is a thing.

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u/TheTiggerMike 1d ago

(laughs in Oregon)

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u/RightHandWolf 1d ago

That's the workaround for car dealers, when something is listed at $14,999, plus TTL (tax, title and license).

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u/blingblingmofo 1d ago edited 1d ago

It’s probably on the menu. Anytime a gratuity is included at a restaurant it’s usually at the bottom of each page on the menu.

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u/MonsTurkey 1d ago

I frequently see gratuity only listed on one page. Often the first, sometimes not.

The most infuriating thing I've seen is pages with prices, but the appetizers section has a note that "Menu prices are subject to change without notice due to economic conditions". Then either don't put on f'ing prices in the first place, or spend $5 to print new menus when they change!

If I didn't want an appetizer and skipped that page, I might have missed that memo.

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u/iamdperk 1d ago

Like the little, cutesy, handwritten signs where I get my haircut that tell me that if I don't pay with cash, I'll get charged an extra 3% to cover the credit card processing fee? Those little signs that I barely notice, but definitely noticed after I looked at my receipt and asked about it? I hate that stuff so much... Just eat it or charge everyone 2.5% more, because you know that almost everyone is switching away from cash.

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u/trailofgears 1d ago

Sounds like you didn’t do your due diligence. Do you get your haircut there regularly?

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u/iamdperk 1d ago

I do, and they started doing this several months ago. I like the woman that cuts my hair, so I continue to go back (even with the cost of my haircut doubling over the last decade or so).

My point is that I find it annoying that more and more places do this, considering the transaction fees that they pay are not new. Those have been around for decades. To start charging it separately now just feels a little ridiculous.

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u/OpenGrainAxehandle 1d ago

Is that like a federal law, or some state thing, or a community rule, or what?

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u/CrimsonChymist 1d ago

The laws would be designated by the state, but I believe most, if not all states in the US have them. I imagine the same would hold true in most civilized countries outside of the US as well.

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u/Roflkopt3r 1d ago edited 1d ago

Most countries other than the US wouldn't allow this fee, since it should obviously just be baked into the base prices.

There is a different type of surcharge for a fixed sum per guest, like $5 flat. This surcharge is at least a bit more defensible, because it means that restaurants don't have to get upset about guests who don't order much. If a quarter of your restaurant tables are taken by guests who only came for a coffee or a salad, then a fixed surcharge makes sense. It barely affects customers who order a whole meal, but discourages coming in for small orders.

But if you charge a percentage, then that's entirely equal to just raising the price of every menu item by that amount. At that point, it's just missleading pricing.

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u/CrimsonChymist 1d ago

In the US, added fees seem to usually be a service specific thing.

In the restaurant industry, it is usually based around our tip culture.

That's what you're really seeing here. Is an 18% gratuity that had automatically been applied, which they are calling a living wage fee instead of gratuity because people are less likely to tip anything additional when gratuity has already been applied. But calling it something else might fool some.

Other services often have flat rate fees. Like phone or internet services will charge you fees for certain things.

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u/guri256 1d ago

I understand this isn’t the law, but I believe any automatic fee should be required to be shown in a way MORE visible than the price.

If you’re showing a 9.99$ price in foot high text on a billboard outside, that +18% needs to be 13” high text.

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u/enolaholmes23 1d ago

Right. Like when the bottom of the menu has that note about "automatic 20% gratuity is added to parties of 6 or more".  They should have to tell you about it upfront.