I went to brunch last weekend and, when the server handed us the bill, she said a 20% service fee was added to cover her benefits and health insurance, but that it was not a tip.
I am absolutely supportive of paying restaurant and waitstaff a living wage and they deserve to have benefits. But I wish that the restaurant would have just baked it into their prices.
No one would have flinched if our meal was just $3 more, but the way it was broken out was just weird and struck us the wrong way. It put everyone in a weird position, especially the server who had to explain that to us.
Is this a trend in restaurants now?
Baffled Customer
More restaurants are charging service fee, but they are doing so in lieu of tips. While other restaurants are adding a low service fee — often up to 10% of the bill — to pay for what they say are higher health costs. However, adding 20% to the bill risks robbing servers of their tips — if customers are expected to tip on top of that.
It’s a legally precarious area. Under some state laws, a service charge should be considered a gratuity unless it’s completely “unreasonable” to assume the fee is for services rendered. That’s probably why your waitress was instructed by the manager to point out the charge, and tell you that it was to cover benefits.
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