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Monday, September 16, 2024

Piqued customers fight back against mounting surcharges at restaurants

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Screen capture from Reddit page, LA Restaurant Surcharge Offenders List

A “blacklist” of restaurants has surfaced in the L.A. area, compiled by customers who have grown frustrated with the increasing number of establishments tacking on various surcharges to their bills.

Reddit, a popular online community, recently unveiled the “LA Restaurant Surcharge Offenders List,” exposing restaurants that have been identified as surcharging their patrons.

The Korea Daily examined the list and found that, as of August 4, it contains 162 restaurants, cafes, and more, all accused of imposing additional charges on customers.

The list is detailed and specific, providing the business name, location, surcharge percentage, and staff comments. It serves as a testament to the mounting frustration customers experience when faced with service fees, management fees, health insurance charges, and other arbitrary tips added to their bills.

Among the well-known LA establishments listed are Bottega Louie, Sugarfish, Little Sister, Lamill Coffee, and Le Petit Paris, all found to have service charges.

Examples from customer reviews include a “4% Kitchen Love fee for submitting a sandwich” at Clark Street Bakery, a “20% service fee added to my bill” at Found Oyster, a “health insurance fee” at Cara Cara, an “administrative fee” at Birdcage, and an “18% service fee + 4% health service” at Broken Shaker.

Seulgi Choi, 38, of Cypress, shared her experience, stating, “I went to a Korean restaurant in Buena Park last week, and when I looked at the bill, I saw an 18% service charge on top of the tax. I felt deceived as a customer because they sneak in fees without any explanation.”

As the list continues to go viral on Reddit, more and more businesses are being added by customers who feel victimized by these surcharges.

“The list of offending businesses is growing, and we are limiting editing access,” said the board moderator, inviting customers to submit their suggestions or report businesses through a separate form.

KTLA reported on August 4 that “the frustration about the ongoing sneaky service charges has led to a grassroots effort on Reddit to track (and sometimes shame) restaurants that are tacking on extra charges.”

The conflict between customers and businesses over these surcharges is intensifying, particularly since the number of restaurant surcharges has surged during the pandemic.

To address the issue, the Federal Trade Commission (FTC) is currently reviewing regulations to prevent such practices.

Yongho Kim, chairman of the Southern California Korean American Food Industry Association (Arado Japanese Restaurant), stated, “There are not many Korean American restaurants that impose surcharges, but they are more common in mainstream restaurants and places frequented by young people. Especially since the pandemic, customers have become sensitive to the issue of tipping, so we eliminated the suggested tipping amount and let customers decide on the amount of the tip.”

BY YEOL JANG    [jang.yeol@koreadaily.com]