In the aftermath of the COVID-19 pandemic, the prevalence of restaurant surcharges, initiated during the pandemic's peak, continue to linger in Chicago. Multiple restaurant owners state that these additional costs are vital for their survival, whereas critics contend that these fees compromise the trust between restaurants and their clientele.
As indicated in a Chicago Sun-Times article, a large number of surcharges introduced during the pandemic, aimed at mitigating the impact of increasing labor, food, and credit card fees, have remained in place following the discontinuation of social distancing regulations. An estimated 15% of every restaurant now collects service fees, according to the National Restaurant Association, a trend that has ignited debate.
An Block Club Chicago article notes the existence of a "Chicago Restaurant Surcharge Offenders List," which identifies over 140 restaurants and restaurant groups implementing service fees. This list achieved significant viral exposure on Reddit. Critics assert that surcharges, with some reaching as high as 25%, are damaging the relationship between restaurants and customers. On the other hand, restaurant owners and industry experts argue these fees are essential to combat inflation, a labor crisis, and exorbitant credit card processing fees.
Transparency is vital concerning surcharges, and patrons should be well-informed about these additional fees prior to receiving their bill. "We strongly suggest all our operators clearly inform their diners about the surcharges prior to presenting the bill. There should not be any unexpected surprises," stated Sam Toia, the president and CEO of the Illinois Restaurant Association by Block Club Chicago.
Simultaneously, Chicago-based restaurant owners are striving to find a delicate balance between their needs and those of the consumer. Derrick Tung, owner of the Paulie Gee's pizzeria in Logan Square, enacted a 20% service fee on all bills about two years ago, intended to cover escalating food costs and for other expenses. All fees directly support the restaurant staff and aim to replace gratuity. "On a slow night, most of our staff make $28 per hour. When it gets busy, their hourly wage increases to around $40, with the service charge included," Tung stated, as disclosed in the same Block Club Chicago article.
