In the face of higher costs, more restaurants are tacking on surcharges to the bill, whether diners like it or not.
This year, 15% of restaurant owners added surcharges, according to the National Restaurant Association's restaurant business conditions survey.
Unlike other small businesses, it can be hard for restaurants to absorb or pass on price increases. A restaurant's typical pre-tax profit is about 5% of sales;"it's a very thin margin to begin with," said Hudson Riehle, the National Restaurant Association's senior vice president of research. At the same time, most costs, including food, labor and rent, are higher now than they were before the pandemic and show no signs of coming back down.As a result, restaurant operators have come up with different strategies to stay afloat, he added, and"some have elected to add on to a typical check certain fees."
Although such surcharges are unpopular among diners, Riehle expects this new business model"will become permanent."Hamei Hamedi, the owner of El Patio in Berkely, California, added a 2.4% credit card fee in 2021 after raising the prices on some menu items.So-called
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