March 10, 2017 Comments Off on Order Up: A New Charge on Your Restaurant Tab Views: 511 California News, Connect Classroom, National News, New York News

Order Up: A New Charge on Your Restaurant Tab

As minimum wages increase in states across the nation, some restaurant owners are choosing to add an additional surcharge to customers’ bills to offset the increased labor costs.

Since 2009, the federal minimum wage of $7.25 an hour has not been increased, so the onus has fallen on many state and local municipalities to increase wages to keep up with the rising cost of living. However, restaurant owners are trying to steer clear of raising the cost of menu items, as research shows that’ll drive consumers to substitute menu items for less expensive options.

Instead, owners are looking to add an additional 3% to 4% charge on the bill. Many owners believe this additional surcharge will allow customers to understand the consequences of higher wages.

According to NPD Group Inc., casual-dining restaurants had an average check of $14.70 without surcharges, an 11% increase since 2012.

Read More at Wall Street Journal

For comments, questions or concerns, please contact Daniella Soloway

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