s0ssos

I think the ones upset are because it isn't a tax and because it is a surcharge whose stated purpose is for employee healthcare. And it wasn't going to employee healthcare. Basically, the owner lied.

https://www.wsj.com/articles/SB10001...80782559817272

Visconti

Aside from the 8.5% sales tax, I'll deduct any additional tax CA or SF passes. If these elected legislators want to drive some of their local constituents out of business, let them. Perhaps, maybe, this will cause the electorate to fire them on the next ballot. For us living in SF, it's getting too ridiculous to put up with. Health care tax for servers. Tax for using a paper bag. 911 Cell phone tax (that visitors don't have to pay, by the way). Small business ordinance tax. Using paper straws. I can keep going on...

Visconti

Of course they lied. When it comes to money, these virtue signaling factions want it as much as the next person. They just figured out & realize they're too lame to earn it, so just need to somehow freeload it from others under the guise of a worthy cause.

Every new generation will have learn this lesson, so, we rinse & repeat.

Mary2e

Restaurants in NJ have just started adding the CC processing fee to users of credit cards. One of my go-to places has done so, and posted a sign advising customers, and I told them I won't be back.

It is stupid, stupid business to piss off your customers like that. Raise the food a $1 and it should cover it. I had a $600 check at that place once, I don't carry, nor do I want to carry, that kind of cash around with me.

I must not be the only one who feels that way... I pass it on my way to my dad's house and it is always busy - and on the weekends it's insanely busy. It's off the beaten track, so people have to make a point to go there. Anyway, ever since the fee the parking lot is not as full as it used to be - even on the weekends.

Rbt001

You are the first to cite and link to the WSJ article. Thank you. This article is from 2011, so I'm not sure if anything has changed since then.

It seems to me, as I read the article, not enough people have a clear understanding.

The HRA's seem like a good idea, even though they are "use it or lose it." At the very least, the employee can use the funds in their HRA to request reimbursement for employee paid health insurance premiums, even if the employee has purchased their own health policy. That most of these HRA funds go unused, according to the WSJ reporting, and are returned to the employer, at least to me implies the employees don't fully understand how to tap into their accounts. "No one got sick," claims one restaurant owner who recaptured all of the HRA funds he had to set aside. Really? Come on.

Applying what I stated earlier, and if I were to visit one of the restaurants named, I'd take a minute for a conversation with the server as I was handing back the signed charge slip with the tip adjusted down for the surcharge: "Are you aware that your employer has an HRA account set up for you?" "No? Well then you should find out, because this surcharge is collected to provide this monetary benefit to you, and that's why I reduced your tip by that amount that you should be paid indirectly...." -or- "Yes? Then you understand why I reduced..."etc.

The advanced conversation down the road...

Hey boss... last year working full time, my sales were $200,000 for you and that means the 3% surcharge imposed on those sales worked out to $6,000. And most of my customers told me they were reducing my tip by the 3%. So my tips were off $6,000 but yet you only provided me with an HRA with $2,600. What gives? Isn't that surcharge too high?

The disparity between surcharges collected and used to fund intended expenses is staggering, as outlined in the article. IF THEY DID NOT...it's a shame that local media didn't pick up on the WSJ's article and further shame the restaurateurs, ensuring a wider audience than the WSJ.

The article also pointed out one restaurant Cafe Flore that was tacking on THIRTY FIVE CENTS, according to the 2011 article. I looked up their online menu which now states 4% will be added for a shopping list of items all of which directly or indirectly benefit the waitstaff, so I'd have no qualms in reducing a tip by the 4%; I'm just paying the wait staff in another indirect way.

Now had it been simply 35 cents, I'd in no way alter the tip. Anyone remember back to that despicable John Schnatter's remarks intended to sway voters against re-electing President Obama? He stated that if he were required to offer health insurance to his workers, that he would be FORCED to raise the price of all of his pizzas by TWENTY FIVE CENTS. (Or at least this is how I remembered it. Found this which stated cost to be $0.11 to $0.14 per pizza https://www.huffpost.com/entry/papa-...izza_n_1752126) But at the time, when I heard the 25 cents figure, I firmly stated that: if me paying just a Quarter more per pizza is all that's standing in the way of all of his employees being offered health insurance, I will gladly pay 25 cents more! Then a day after re-election he stirred up great controversy as he discussed cutting employee hours to avoid providing health care. More than six years later, I still haven't taken a bite of a Papa John's pizza.

And for those restaurants exposed as imposing a surcharge that simply flows to the bottom line because they don't use the surcharge as intended, they should be avoided.

Rbt001

I'd be right with you... at another restaurant that gladly accepts the credit card without a fee.

One trick I heard years ago from an American Express manager that was used in establishments who would accept only bank cards rather than AMEX.... they'd send in people to buy a huge amount of merchandise, pull out their AMEX card at the register, then feign surprise and walkout. Done enough, merchants would sign up.

In the case of a restaurant, if they do catering or lunch groups, you could call and make all of the arrangements, have them quote the price, then wait for them to quote the fee to use the card, then decline the business citing the fee. Otherwise hard to do after you've had the meal and it's clearly stated. This is certainly a surcharge that should just be baked into the menu, rather than aggravating customers.

I use a credit card for every purchase I can.... but I sure carry the cash to take advantage of a local restaurant's cash discount of 10%.

Visconti

For my taste, this is way too much effort. I'm having dinner and ordering items to be served, not to engage in anything other than the reason why I'm there. While respecting everyone, I'm paying to be served, not to be buddies or educate whomever is serving me for a fee, which I pay.

They can deal with this on their own, and leave me out of it. If it means 86'ing me, fine. World has plenty of options for way better pricing than SF.

PS - never been in the service profession, but, I'd wager they want the tip & couldn't care less about whatever BS why, in their mind, being stiffed.

tmiw

I'll cut a little bit of slack for small purchases. There is​ a reason why credit card rewards in this country are pretty good, after all.
​​​​​​
Of course, a fair number of people likely won't do so. The merchant considering doing this should consider whether it's worth it.

s0ssos

SF Chronicle has done some reporting, don't know if stuff has changed though
https://www.sfchronicle.com/restaura...ge-4499854.php

corky

Retailers like Trader Joe and Pottery Barn give health care benefits to even part time employees. Can you imagine checking out and having a 3% charge added to you bill at Trader Joe to cover the cost of health care?

Jaimito Cartero

Badenoch

I generally tip 20 per cent pre-tax. If the restaurant adds a service percentage or other surcharge then the tip is reduced by the same amount.

I am sensitive to credit card fees. My credit card is used at large chain restaurants and retailers but I pay with cash or debit at independent outlets. Credit card companies will sometimes intimidate small retailers if they institute a processing charge. What some places have done in response is offered a discount for cash or debit payment.

enviroian

How does Europe get away with posting three different prices for something? Option one is cash then it’s this amount (lowest); option two is with MC of visa (option one + 3%); option three is pay with AMEX (option 1+ 5% or whatever AMEX SC is).

Crazy.

Kgmm77

Mary2e

They did raise prices on a few items.

This place has Mon & Tues night specials - take out only, and really, really reasonable. Something like $9.99 for a spaghetti & meatball dinner. They raised the price on it to $11.99. Pizza for $7.99 and now $8.99 (or near that)

My guess is they were loosing their shirt on those specials. They did a booming business on those days and I'll bet most people charged.

Their food is decent, though I've never tried the specials. We usually ordered regular entrees on the weekend and the bill never was lower than $50 - $60.

The other place that I heard was doing it stopped after they got creamed on Yelp and Facebook.

It is really bad business to surcharge like that. Just raise the prices to cover the fees.