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Customers furious as restaurants are now adding a brand new charge to bills - and some claim it should be ILLEGAL
A 'manipulative' new surcharge is creeping on to restaurant bills and customers are furious about it.
The 'deceitful' new fee, that is neither a tax, tip or credit card fee, has been sneaked on to restaurant bills in recent months.
It comes as diners become increasingly frustrated by the rocketing price of eating out.
One social media user posted their recent restaurant check to Reddit, showing a two percent surcharge tacked on to the total bill.
'A surcharge of 2% will be added to your bill to help cover rising costs. This is not a tip or gratuity' a line at the bottom of the receipt read.
A recent check, showing a two percent surcharge tacked on to the total bill
'Is this normal at restaurants now?' the poster asked.
Many users expressed anger at the 'hidden' charge.
'Unless this is posted prominently on the menu, I would not pay it' one user commented under the post.
'This should actually be illegal. They are keeping menu prices down to encourage you to spend more but then add an undisclosed surcharge to your final bill to recoup the cost' another wrote.
They added: 'They don't add it to menu prices because then you will spend less whether or not you can afford it. It's manipulative and deceitful.'
'Isn't the point of menu prices to know how much you are going to spend? They cannot just "add" whatever they want after it's all said and done' a third said.
Last year 15 percent of restaurants added a surcharge to customers bills, according to the National Restaurant Association.
The charges may be used to cover rising costs restaurants face due to inflation, or employee healthcare or even tap water, CNBC reported.
A restaurant's pretax profit is usually around 5 percent of sales, according to Hudson Riehle of the National Restaurant Association.
Last year 15 percent of restaurants added a surcharge to customers bills, according to the National Restaurant Association
California is set to make such surcharges illegal as new rules come into effect on July 1
'It's a very thin margin to begin with,' Riehle told CNBC, making it hard for such businesses to absorb or pass on price increases.
California is set to make such surcharges illegal as new rules come into effect on July 1.
Under SB478, that will ban junk fees in the state, California restaurants will no longer be able to use surcharges to offset the cost of wages, local mandates and benefits meaning many will have to fold them into menu prices.
Some restaurants and cafes have expressed concern that offsetting costs by raising prices will put inflation-weary customers off, resulting in lower sales.
However, others have moved to ban tips and other charges and simply raise their prices.
Indeed, Americans have become increasingly weary of 'tipflation'.
Two-thirds now having a negative view about tipping and are growing 'stingier' with gratuities on a range of everyday services.
In February, a fresh law in New York State was launched to stop unexpected and over-the-top fees being added when paying by card in the state.
But there are fears the two key rules won't be enforced since a similar rule in 2020 was ignored.
First of all, any fees added by bars, restaurants and shops must be fair. Imposing excessive fees - for example, adding 4 per cent when the bank only charges then 2 percent - is against the new law.
As well as that, the new law reiterates that companies must always display the exact price card users will need to pay for each item, whether its beers in a bar, burgers in a restaurant or a drink from a store.
It is not enough to simply display a notice by the cashier or on the door saying a fixed percentage fee will be applied to all transactions.