High-end SD restaurants poised to add surcharge for “government mandated” costs to business
By Anna Daniels
attribution: Goldenkb|Dreamstime.com
Over the past ten years consumers have absorbed higher costs at the check-out counter for all manner of goods. Remember when gasoline costs spiked and affected more than gas at the pump? Everything from the potted plants at the local nursery to grocery items reflected an attendant price increase. Remember when the cost of coffee went up? What about the shortage of cheese and how that was reflected in higher consumer costs?
These consumer cost increases reflect everything from volatility in the commodity market to shortages caused by natural disasters to price fixing. We weren’t handed restaurant checks or grocery bills with a surcharge added for “free market” or “act of god” or “corporate greed.”
So why are some San Diego restaurants considering a surcharge on bills to cover the most recent “government mandated” wage hike which raises the minimum wage to $11.50 an hour?
Will San Diegans reflexively embrace the pernicious subtext that people working in service industries don’t deserve a livable wage?
The corollary to this is that San Diegans should question the legitimacy of government in the provision of correctives to the growing inequality created by the free market.
The proposed surcharge is a covert way of injecting Conservative and Libertarian ideology into your dining experience–the damn government has its fingers in everything! my waiter is probably making more an hour than I do! let the free market decide!
We’ve been here before. When the Affordable Care Act was implemented, restaurant franchise owners tacked an Obamacare surcharge on customer bills. Customers unhappy with the surcharge were encouraged by one franchise owner to reduce the amount of tip for their server. Is that the point of the proposed surcharge, to put the squeeze on your server?
Restaurants have and do raise their prices, but it is only when prices are affected by mandated wage or employee benefit increases that the surcharge delineation kicks in. High end restaurants are expected to lead the way on this–George’s at the Cove has already added a “3% surcharge in support of local and state mandates.” Note the clever use of “in support”. Noblesse oblige is alive and well.
What does it say about us if affluent people with discretionary income to spend on a high end restaurant find it potentially off-putting that their dining experience is going to cost 3% more in order to pay the people who are serving them a livable wage?
Progressives shouldn’t go along with this
What do you intend to do if you go to a restaurant and find this surcharge on your bill? Will you ask to speak with the manager and say 1) the people who work for you have the right to a livable wage and I support that; 2) if you need to raise your prices to absorb rising costs, for whatever reason, please do so and let me decide whether I can afford to patronize your restaurant.
Are you willing to take a stand on this?
Update Friday January 6
CBS8 reports:
“A new meal surcharge isn’t sitting well with local diners and now it is raising legal concerns.
The City Attorney’s Office announced Thursday that it is looking into the legality of a surcharge being levied on some restaurant customers in response to San Diego’s minimum wage increase…
City Attorney Mara Elliott said the investigation was launched after complaints about the practice were received on a consumer hotline. The added cost was not made known to customers beforehand and was falsely billed as being mandated by the government, she said.
The city’s consumer hotline at (619) 533-5600 operates weekdays from 9 a.m. to 5 p.m. Complaints can also be filed online at sandiego.gov/cityattorney.”
Anna Daniels
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Absolutely, Anna, I will not eat at any restaurant making this anti-livable-wages political statement disguised as a “surcharge.” If I see that on the menu I will speak to the manager and then walk out.
Also, in related news: https://ww2.kqed.org/news/2017/01/03/minimum-wage-goes-up-and-so-does-business-thats-what-this-fast-food-ceo-says-happened/
A fast food franchise owner says: “The minimum wage increase has been a godsend. The buying public has more money in their pocket.”
The problem for those overpriced San Diego restaurants is that we need a minimum wage of $30/hour or so before people can afford to eat there. They should be advocating for that!
Yes, yes to Anna and Susan!
Restauranters make political statement by adding surcharge to ‘cover’ the cost of paying the poorest workers a higher wage.
The Union-Tribune article helpfully provides a list of restaurants to boycott as well as some to support.
Back in May 2016, David Cohn speaking at a CREW event “It is so easy to vote for that {minimum wage} increase, but it is going to really raise your cost of entertainment and spark a new round of inflation that we haven’t seen since the 1970s.” He was reported as predicting that the results could lead to menu prices increasing a minimum of 30% over the next few years. From Jan 1, 2017 the Cohn Restaurant Group is adding a 3% surcharge to cover ‘mandated’ cost increases.
One restaurant association executive is quoted as saying “my advice to San Diego was don’t label it as something you’re doing because of the minimum wage because people will perceive you’re complaining or making a political statement.”
According to the article the Cohn Restaurant Group, Rockin’ Baja Lobster, Urban Kitchen Group, Brigantine, Bali Hai, and Tom Ham’s Lighthouse are all asking us to get political and spend our dollars someplace else.
Perhaps we could email Arsalun Tafazoli, cofounder of CH Projects, and encourage him to eliminate tipping at his restaurants, and instead have an inclusive what-you-see-is-what-you-pay-price, so he can help make it easier for San Diegans to pay real-wages to all workers – arsalun@neighborhoodsd.com
2017 is a fighting year.
By all means! Let’s see more of these places being called out – by name – so we’ll know where NOT to go…
I am willing to pay more for a meal to support the service workers. I am not willing to pay a surcharge. To date I have not seen surcharge on any of my bills but I will get up and leave a restaurant that has added that statement.
Why cant the restaurants simply raise their prices? All of who voted for the minimum wage increases knew we were going to be paying more to dine out, but not necessarily in the form of a so called “surcharge”.
” All of who voted for the minimum wage increases ”
I meant to say “all of us”.
Dined at OB Warehouse last night. I wasn’t aware until the bill came that 3% surcharge was added. A “Dear Customer” card was presented with the bill explaining the surcharge. I emailed CRG complaining about the surcharge and the response, while civil, basically said, other cooler cities accept it, so just shut up & take it un-hip San Diego!! As of last Thursday, after numerous complaints, our new City Attorney is investigating so I am forwarding all info to her office. I also note that on the reverse side of the “Dear Customer” letter was a list of charities supported by CRG. I choose not to support “San Diegans Against Lawsuit Abuse” (how can this be an actual legit charity). While many of the listed charities are reputable, I prefer to choose my own charities, thank you.