Auto-gratuity, service charge, dine-in fee, SF Mandate, living wage surcharge—the list goes on.
Eating out in San Francisco has gotten more complicated—and more expensive.
If you’ve been out to eat recently, you’ve probably seen these extra charges at the bottom of the bill.
But why are restaurants charging these extra fees, what are the rules around them, and should you still tip?
When it comes to the law around surcharges, restaurants can make up any kind of extra charge they want, as long as they clearly display what it is with signage or on the menu, according to SF-based hospitality lawyer Zach Georgopoulos.
“As long as they’re vague enough, they’re not particularly regulated,” said Georgopoulos, a founding partner of Georgopoulos & Economidis, a business law firm that specializes in restaurant law.
Rudi’s Sports Bar does not have a space for tipping on their receipts, but instead adds a 20% “service charge” to the bill to help boost worker pay, says owner Rudi Rughoonundon.
Patrons can still leave a tip if they wish, in cash or by credit card.
The charge was first implemented six weeks ago at the 16th and Valencia Street bar and the owner says it’s a way to ensure all employees see a fairer share of tips.
“We wanted to leave something for employees, some people left without tipping, which I didn’t think was fair,” said Rughoonundon, who adds that the service charge cash does not go to him.
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