FSR’s Post

INDUSTRY STORIES with Los Angeles Times: “#Restaurant service fees are staying after all with Newsom signature of last-minute bill." “Those 3, 5 and 20% fees at the bottom of your menu could be here to stay. With little time to spare, a new law will allow restaurants and bars to continue charging service fees, healthcare costs and other surcharges when listed clearly for diners to see. The practice was set to be outlawed beginning Monday. On Saturday, Gov. Gavin Newsom signed Senate Bill 1524, an emergency measure to exempt California food and beverage vendors from Senate Bill 478 — a law that goes into effect in July and targets ticket sellers, hotel and travel websites and other businesses that charge “hidden” or “junk” fees. Before Newsom signed SB 1524, which was introduced in early June, restaurants and bars were included in the affected businesses, and Atty. Gen. Rob Bonta had advised that the food and beverage vendors roll such fees into listed menu prices to avoid the possibility of legal action.” Read More HERE: https://lnkd.in/gvn3gWXM What’s making news in your community? Comment, or send us a dm!

Thorough analysis from Joe Mcnamee of the ongoing crisis in the restaurant/food service sector. This type of storm has not been experienced before when so many challenging and some unscalable factors come together to make it well nigh impossible to make a profit. No two businesses will close for the same reasons, but all will have at least one of the current challenges which has tipped the business over the edge. Unless we stop this soon, we will have a top and bottom industry and nothing in the middle. The knock on effect for our indigenous producers is also stark. #thebusinessoffood #restaurantbusiness #businesssupportingbusiness #irishexaminer https://lnkd.in/dqRHzvxW

Service charges in restaurants have become more common, but they often need clarification for diners who mistake them for tips. These charges address the restaurant industry's challenges, such as labor shortages, rising wages and delivery fees. However, the lack of clarity around service charges and their distribution leads to frustration among customers and employees. Some restaurateurs see service charges as a way to eliminate tipping and provide a more equitable wage system, while others view them as a necessary but imperfect solution. Ultimately, a broader shift in dining culture and perception may be needed to accept service charges or incorporate them into menu prices fully. #FutureofRestaurants #ServiceCharges #DiningCulture

Are you a restaurant owner or aspiring restaurateur in the UK? It's crucial to stay informed about the latest regulations that govern our industry. 👇 Read the article here 👇 https://lnkd.in/eNA8Y8rh #UKRestaurants #RestaurantRegulations #HospitalityIndustry #ComplianceMatters

Wes Lambert CPA, FGIA, CAE, MAICD is absolutely right! #enoughISenough! The increasing restaurant closures are indicative of a broader systemic issue within the hospitality industry. Factors such as government and landlord policies, mandatory cost increases, and consumer resistance to price hikes contribute to the challenges faced by restaurants. This situation underscores the need for systemic reforms to address the sustainability of the restaurant business model. How? Who? When? 🤷♂️

No-shows for dinner reservations are becoming more prevalent this time of year, costing restaurants thousands. While some restaurants ask for a credit card deposit to combat this, those charges are often reversed. With razor-thin margins already, it's essential not to be a #noshow. #restaurantmanagement #reservations

New restaurant pricing is coming to California July 1st. Changes to add-on service charges and mandated tips for large parties are on their way. It will be interesting to see how diners react. #restaurants #tipping #servicecharges

Death by a Thousand Service Fees 'If you’re the type of diner who regularly eats at restaurants, you’ve almost assuredly noticed a “service fee” tacked on to your check at one establishment or another. These fees, which can range from 3 percent to 20 percent of your total bill, are increasingly ubiquitous as the cost of doing business gets more expensive for restaurants. They’re also endlessly complicated, both for the diners who pay them and the employees who allegedly benefit from them. Now, the fees have inspired a lawsuit at Los Angeles hot spot Jon & Vinny’s. To make the case for service fees, many restaurateurs have insisted that they’re a way to make pay more equitable between front-of-house workers like hosts and servers and kitchen workers like line cooks and dishwashers. Many of the restaurateurs that started charging service fees did it as a way to phase out the notoriously inequitable system of tipping altogether — or because their attempts to get rid of tipping via raising menu prices failed. And many, including industry heavyweights like Danny Meyer’s Union Square Hospitality Group, couldn’t make the no-tipping model work due to staff departures over lower front-of-house pay, customer sticker shock, or both. The service charge, as Benu’s Corey Lee put it a few years ago, is a bridge: “The idea of a ‘tip’ is so ingrained in American dining culture that most diners aren’t ready for service-inclusive pricing,” Lee said back in 2019. “Therefore, we break it out for them as a separate charge so they can see what’s happening.”' Read more: https://ow.ly/oere50Ps93g via Eater #ServiceFees #Inflation #Restaurants #RestaurantIndustry #Hospitality #HospitalityIndustry #HospitalityLaw