Covert and confusing ‘service charges’ anger US diners

 Guardian -  Diners say that confusing service fees are driving up the cost of meals – and they’re tired of it. Many restaurants implemented surcharges as a way to rebound from the pandemic. But at some establishments, these extra costs are sometimes only revealed after the diner gets an itemized receipt. Patrons say that’s dishonest... Service fees have emerged as a confusing new facet of restaurant etiquette. Despite the name, a service fee is not the same as a tip and does not necessarily go to servers. Instead, the fee ends up in the hands of a restaurant owner, who will spend it however they see fit. Sometimes, it goes to waitstaff or employee benefit funds. It can also go toward the overall cost of running the business.

In Los Angeles, an Italian restaurant was sued by servers, who said that the surcharge violated gratuity laws. Now, the owners put a disclosure on customer checks, saying the 18% fee “is not a tip or gratuity” but an “added fee controlled by the restaurant that helps facilitate a higher living base wage for all of our employees”.