
Am I Petty For Being Upset Over the $1.52 Fee I Was Charged at in Indiana Business?
I have a legitimate question for you: Am I being petty? Let me explain.
I Have Some Past Experience With the Food and Beverage Industry
Before I get into what happened, let me start by saying that prior to my current career in media, I worked a number of different jobs including retail and food and beverage service. I have been trained on proper food handling, have held an Indiana liquor license to work behind a bar, and am well aware that servers are still making the measly $2.13 per hour as minimum wage for tipped employees.
READ MORE: Servers Deserve a Wage Increase in Indiana [Opinion]
I Always Try to Be a "Good Customer" When Eating Out
It's because of my experiences as a tipped employee, both serving food and serving drinks, that I always try to practice being a "good customer," meaning I always try to be polite, understanding and patient. I also always try to tip well because I know that the federal minimum wage for tipped employees hasn't seen an increase in more than 30 years.
A Recent Evansville Restaurant Experience Rubbed Me Wrong
Recently I went out to eat at an Evansville area restaurant. I experienced something after our meal was through that I have not encountered before, and frankly it feels a little icky to me.
A Breakdown Of Our Dining Bill
We ordered an appetizer, two entrees, a glass of water, and a glass of iced tea. This is a pretty standard meal for the two of us when dining out.
- Appetizer: $10.80
- Entree #1: $10.85
- Entree #2: $15.70
- Water: $0
- Ice Tea: $2.90
The Billed Prices Matched the Menu But What Is This Fee?!
All totally fine and normal. These were the prices as available on the menu when we ordered, but the next line is where I got confused. There was a $1.52 "Service Fee," and I have absolutely no idea what it was for. Now, that $1.52 certainly isn't going to break the bank, as the saying goes, but it was unexpected and caught me off guard.
Charged a Mystery Fee and Taxed On It Too
Not only was I charged this mystery fee, but it was calculated into my subtotal (read: pre-tax total). When the 7% Indiana sales tax and additional 1% food and beverage tax was calculated, it was calculate based on the subtotal - including the additional mystery fee!
So not only was I charged a random fee with no explanation, I was also taxed on that fee. Of course, I did what I do most of the time when I don't know the answer to something - I Googled it.
"Hey Google, What is a Restaurant Service Fee For?"
It was in my online search that I found information from TOAST, a company that many restaurants rely on for their "point of sale" systems. They handle the automation of the food service industry so instead of hanging a paper ticket on a metal strip for the cookstaff, servers enter your order in their "POS" computer. The POS communicates to the kitchen staff, calculates and prints your bill, and is what your server uses to run your credit card at the end of your meal.
Service Fees Are a Growing Trend Among Restaurants
According to TOAST, service charges are gaining in popularity in the restaurant industry. Often service fees are added to a bill for things like large groups, bottle service, delivery fees, etc. They say the service fees are often used to offset inflation.
Service charges are becoming more and more popular in restaurants. As the industry continues trending in the direction of equitable living wages for all employees, restaurateurs are leaning on service charges to support their staff while increasing profitability. Rather than raise menu prices, many restaurant owners are fighting inflation and rising costs by implementing service charges to account for their increased cost of goods. - TOAST
Asking the Professionals - Evansville Area Restaurant Managers and Owners
After going to Google, my next step was to ask the professionals. I spoke with a handful of area restaurant managers and owners. Several were not familiar with service fees in their personal experiences. Others were in agreeance with the information I had found at TOAST - that the service fees are a way to offset the cost of doing business without raising overall prices.
Inflation Is a Continuing Problem for Small Businesses and Consumers
Now, I fully understand (and support) the need to turn a profit, and I also understand that inflation is a continuing problem not only for consumers but for small business owners as well.
Shouldn't The Cost of Business Be Calculated Into the Cost of Goods & Services?
I've always been under the impression that when the cost of doing business - like utlilties, food costs, leases, insurance, wages, etc - goes up, the menu prices increase to reflect those changes and to maintain the business's bottom line.
Small Businesses Are the Backbone of Our Community
I truly believe that small business is the backbone of our communuty. I also believe a key to good business is being clear, transparent, and honest in pricing, and I feel like a mystery service fee tacked on at the end of my meal is none of those things.
I Still Have So Many Questions About the Mystery Fee
It actually leaves me with so many questions. Is it a flat fee per table? Is it a per-person fee? Is it a percentage of what I ordered? See what I mean? It isn't clear. It isn't transparent, and because of that, it doesn't feel honest.
It Just Feels Icky to Find a Fee at the End of the Meal. Thoughts?
I want to be clear, I am not accusing the restaurant of being dishonest in any way, but rather the practice of adding a random fee at the end of my experience makes it feel that way. It just feels... well, icky. I would love to know your thoughts. Do you think undisclosed service fees are ok or ick? Would you prefer to see menu prices increase a few cents across the board to offset the cost of doing business?
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