California Restaurants Must Start Eliminating Special Surcharges

Starting July 1st, California is changing the game for restaurant bills. Those extra charges you often see tacked onto your check? They’re becoming a thing of the past. But as with any change, there’s a bit of confusion in the mix.

The new law is pretty straightforward: no more surprise fees, except for taxes, of course. This means no more service fees, delivery charges, or those added-on tips you might not even realize you’re paying. Well, it’s mostly clear. The Attorney General insists that restaurants have to disclose these fees somewhere, whether in ads or on menus. But what exactly counts as an ad? That’s where things get murky.

Opinions among diners in Walnut Creek vary. Some argue that including fees in the menu prices would streamline the dining experience. Others fear that without those separate charges, restaurants might just hike up their prices instead.

And let’s talk about tipping. Many folks feel like tipping and fees have spiraled out of control. It’s all too easy to accidentally double-tip or find yourself paying for something you didn’t even order.

In San Francisco, diners often encounter mandatory service charges ranging from 4% to 20% on their restaurant bills. A proposed law aims to eliminate these notices, but it could lead to increased overall prices for customers. Food expert Marcia Gagliardi warns that this shift may result in higher menu prices as restaurants try to cover rising costs, particularly in wages.

“Just when you thought your pork chop was already really expensive, guess what? We’re going to be seeing higher prices, because there’s nowhere else these restaurants can put these fees and higher wages in order to maintain these employees. It’s used to create an equitable model for employees. Typically servers make much more money than back-of-house [workers] and dishwashers, so it makes a way for those funds to be distributed equitably.” 

Marcia Gagliardi, author of tablehopper, via CBS News

The law, effective July 1, targets junk fees in ticket sales but also extends to restaurant service fees, aiming to ensure equitable distribution of funds among restaurant staff. Gagliardi emphasizes the challenge of balancing wages between servers and other restaurant workers like dishwashers.