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Covert Service Charges: Restaurants Cornered into Controversial Measures!
Madhu Madhu | June 27, 2023

Restaurant Bills Add Up: Unexpected Charges Frustrate Diners

Restaurants are increasingly including service charges on customers' bills, separate from tips. These charges, known as living wage fees or kitchen fees, aim to improve compensation for back-of-house staff like cooks and dishwashers.

Some fees are intended to cover employees' healthcare, while others are mandatory minimum gratuities shared among all restaurant workers. Initially introduced to offset pandemic-related expenses, such as purchasing protective gear and implementing safety measures, restaurants continue to grapple with rising costs even as social distancing measures ease.

Moreover, diners often overlook these charges listed in fine print, leading to surprise at the final check. As restaurants navigate labor shortages and escalating expenses, striking the right balance between worker pay and affordable prices remains a challenge.

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