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Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So... We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn't a grammatical horror to read]
How is this any different than just raising the price of everything by 18%? But you see service charge and a percentage and its an outrage.
If you raise the price of everything by 18% the prices on the menu will be 18% higher, possibly discouraging people from eating there. If you add it at the end people will still choose to eat there at least once. It is practically the same as raising prices, just a lot more dishonest.
Also illegal. It's called bait and switch. Advertise one price, provide the service, then change the price. What if you went to get $50 in gas, and after you put the nozzle back the price suddenly changed to $59. Unless there's a very visible sign saying it would happen before you started pumping, it's illegal.
I'm sure that they have a sign by the front stating that they do this. Probably on the menu as well. I doubt that most people are doing the math themselves and are more likely to see a $10 menu item and think it's $10 + tax and fees. Basically the extra fees are an afterthought.
Because raising the price of everything lets you know ahead of time that you are paying more. I'm fine with a price hike if it means servers get better pay, but hiding it like this is scummy and borderline fraudulent.
It isn’t hidden. They tell you upfront there is an 18% charge, however they rely on people ignoring that or psychologically not caring and only looking at the item price.
I wonder how many people would see the warning and assume it just means an 18% auto gratuity? Because that's very common and the amount is exactly what many auto gratuities have (or at least had when I last was in the US, which was several years ago). Because if I saw something saying there was an 18% service fee, that's what I'd assume. I would not think there'd be a tip on top of that.
That said, the US custom of not including the final price (including taxes) in the posted prices is a shitty, toxic practice and should be illegal.
I saw elsewhere that workers are suing this restaurant over this specifically. If they are doing a service charge like this it should not be revenue generating to the restaurant.
They are trying to tell you to not ask for a livable wage.
It does make sense to increase all menu prices in order to pay higher wages, but it's a sleazy dishonest practice to hide that increase from the customers until it's too late.