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Earls Kitchen + Bar 'Admin Fee' on receipt sparks restaurant charge debate
Fox News • • business
Key Points:
- A diner at Earls Kitchen + Bar in Denver was upset by a 3% "Admin Fee" added to his bill, sparking debate about the increasing use of extra charges in restaurants.
- The fee, which was 83 cents on a $27.75 food and beverage subtotal, led the diner and others on Reddit to question the transparency and fairness of such charges, with some saying it affects tipping behavior.
- Restaurants nationwide are using administrative or operations fees to manage rising costs without raising menu prices, but this practice has drawn criticism for surprising customers at checkout.
- Florida has enacted a law requiring restaurants to disclose such fees and their purposes before ordering, though some operators prefer raising menu prices upfront to avoid customer backlash.
- Industry experts warn that unexpected fees can reduce tips and damage customer goodwill, emphasizing the importance of transparency and clear communication about any additional charges.
