Restaurant 'admin' fees spark backlash as diners question what they're paying for
People see that as a gotcha, and that last impression is what they remember and share online." Other restaurant operators appear to be reconsidering the practice.
Key points
- TEXAS BBQ JOINT TAKES DRASTIC STEP AS SOARING BEEF PRICES DEVOUR RESTAURANT Some operators have turned to administrative, service or operations fees rather than incorporating the additional costs into menu prices — a practice that has generated pushback when diners encounter another charge on the final bill.
- An October state restaurant inspection report for a West Palm Beach location noted the fee and cited the establishment because, while the charge and its purpose were disclosed on the menu, it did not appear properly on the customer's receipt.
- Restaurant customers have taken to social media in several states to complain about similarly labeled charges, while operators have defended them, arguing it's necessary to combat rising expenses without increasing menu prices.
APPLEBEE'S CUSTOMER PUSHES BACK ON SUGGESTED TIP AFTER CHECKING THE MATH "What the h--- is even an ‘admin fee’?" the person wrote in the post.
"I prefer raising the menu prices to reflect real costs and then offering a clear cash or debit discount over adding an 'admin,' 'service' or processing fee that may come as a complete surprise after your meal.
Additional details
- The problem is customer reaction — especially when the fee appears only on the final bill." CLICK HERE FOR MORE LIFESTYLE NEWS The charges could also have an unintended consequence for restaurant employees, Parmelee added.
- A diner is calling out a restaurant chain over an administrative fee added to his bill, renewing debate over the extra charges that have become increasingly common at restaurants.
- But some restaurant owners say the better approach is to skip the fees altogether.
- … No tip for you!" Other Reddit users similarly questioned the charge, with some saying administrative fees would cause them to reduce or eliminate their tips.
- In addition to $2.28 in taxes, the bill included an 83-cent "Admin Fee" — 3% of the food and beverage subtotal — bringing the total to $30.86 before tip.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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